Shriram Transport Finance Company Ltd

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Cameron Cummings
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1 Shriram Transport Finance Company Ltd Investor Update Q4 & FY April 27, 2018

2 Performance Highlights FY18 vs FY17 Total Income 14.6% FY18 FY17 Rs 124,165.8 mn Rs 108,306.1 mn Net Interest Income* *including Securitisation Income 22.0% FY18 FY17 Rs 67,345.4 mn Rs 55,211.8 mn Cost to income ratio at 20.59% in FY18 as compared to 21.15% in FY17 PAT 24.7% FY18 FY17 Rs 15,680.2 mn Rs 12,573.4 mn EPS 24.7% FY18 Rs FY17 Rs

3 Performance Highlights Q4 FY18 vs Total Income 27.2% Q4 FY18 Rs 34,487.9 mn Rs 27,123.1 mn Net Interest Income* 28.3% Q4 FY18 Rs 18,075.5 mn Rs 14,086.9 mn Cost to income ratio at 20.51% in Q4 FY18 as compared to 19.35% in *including Securitisation Income PAT -3.4% Q4 FY18 Rs 1,446.0 mn Rs 1,496.3 mn Employee strength at 23,819 (including 15,042 field executives) in Q4 FY18 against 18,885 in EPS -3.4% Q4 FY18 Rs 6.37 Rs

4 Performance Highlights Q4 FY18 vs AUM GNPA 21.0% 36.4% Q4 FY18 Q4 FY18 Rs 953,063.0 mn Rs 787,609.3 mn Rs 73,763.9 mn Rs 54,084.4 mn In accordance with regulations, shifted NPA recognition norms to 90 days in Q4 FY18 from 120 days in. NNPA Book Value 28.5% 11.3% Q4 FY18 Rs 21,311.4 mn Rs 16,590.0 mn Q4 FY18 Rs Rs Coverage ratio at 71.11% in Q4 FY18 as compared to 69.33% in CRAR at 16.87% as of Q4 FY18 compared to 16.94% as of. 4

AUM Break-up Particulars (Rs. mn) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 YoY (%) QoQ (%) FY17 FY18 YoY (%) - On Books 654,628.7 683,005.

8 156,333.8 17.56% 3.30% 132,980.6 156,333.8 17.56% Total AUM 787,609.3 816,119.5 854,625.7 900,185.6 953,063.0 21.01% 5.

9 710,588.4 740,139.0 770,473.2 800,976.0 16.70% 3.96% 686,328.9 800,976.0 16.70% - Others 22,091.7 24,338.7 28,511.3 34,628.

87% 787,609.3 953,063.0 21.01% Segment-wise Break up Tractors, 4.5% SEFCL Equipment Finance, 1.1% Others, 2.

5 AUM Break-up Particulars (Rs. mn) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 YoY (%) QoQ (%) FY17 FY18 YoY (%) - On Books 654, , , , , % 6.39% 654, , % - Off Books 132, , , , , % 3.30% 132, , % Total AUM 787, , , , , % 5.87% 787, , % - New 79, , , , , % 14.46% 79, , % - Used 686, , , , , % 3.96% 686, , % - Others 22, , , , , % 24.91% 22, , % Total AUM 787, , , , , % 5.87% 787, , % Segment-wise Break up Tractors, 4.5% SEFCL Equipment Finance, 1.1% Others, 2.8% SEFCL Equipment Finance, 0.5% Tractors, 4.1% Others, 4.6% Passenger Vehicles, 24.9% HCVs, 46.7% Passenger Vehicles, 23.2% Q4 FY18 HCVs, 47.0% M&LCVs, 20.0% M&LCVs, 20.6% 5

6 Branch & AUM distribution Q4 FY18 vs Branch (Nos) AUM (Rs in bn) Rural, 366 Total Branches 918 Urban, 552 Rural, Total AUM Rs bn Urban, Rural, 583 Total Branches 1,213 Q4 FY18 Urban, 630 Rural, Total AUM Rs bn Q4 FY18 Urban,

7 NPA Analysis Particulars (Rs. mn) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 YoY (%) QoQ (%) FY17 FY18 YoY (%) Gross NPA 54, , , , , % 22.00% 54, , % Net NPA 16, , , , , % 21.71% 16, , % Gross NPA (%) 8.16% 8.03% 8.06% 7.98% 9.15% 12.13% 14.66% 8.16% 9.15% 12.13% Net NPA (%) 2.65% 2.49% 2.45% 2.45% 2.83% 6.79% 15.51% 2.65% 2.83% 6.79% Coverage Ratio (%) 69.33% 70.81% 71.33% 71.04% 71.11% 2.57% 0.10% 69.33% 71.11% 2.57% The company transitioned to 90 dpd NPA recognition in Q4 FY18 YoY figures are not comparable since NPA recognition in was on 120 dpd basis Provision Coverage Ratio (PCR) on 90 dpd at 71.11% in Q4 FY18 as against 69.33% on 120 dpd in. 7

8 Well-entrenched Pan India Network Regional Split of Branches ABBREVIATIONS ZOSOU, 179 ZOSO1, 255 ZOWON, 83 Zone Zone Name ZOADH, 134 ZOADH HYDERABAD ZONE ZODHP, 71 ZOECE, 80 ZOGRA, 129 ZONCE, 91 ZONRW, 191 ZODHP NORTH II - DELHI ZONE ZOECE EAST CENTRAL ZONE ZOGRA WEST II - AHMEBABAD ZONE ZONCE NORTH I - LUCKNOW ZONE ZONRW WEST I - MUMBAI ZONE ZOSO1 SOUTH I - CHENNAI ZONE ZOSOU SOUTH II - BANGALORE ZONE ZOWON EAST - CALCUTTA ZONE Branch Network Branch Offices Customers Employees Field Officers Private Financiers Rural Centres 8

9 P&L Statement Particulars (Rs. mn) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 YoY (%) QoQ (%) FY17 FY18 YoY (%) Interest income 24, , , , , % 7.00% 98, , % Interest expended 12, , , , , % 8.07% 52, , % Net interest income 11, , , , , % 5.96% 45, , % Income from securitisation 2, , , , , % 5.57% 9, , % Less : Securitisation expenses % 77.71% % Income from securitisation (net) 2, , , , , % 4.74% 9, , % Net interest income (incl. sec) 14, , , , , % 5.74% 55, , % Other fee based income % 34.56% % Operating income 14, , , , , % 5.79% 55, , % Operating expenditure 2, , , , , % 9.52% 12, , % Core operating profit * 11, , , , , % 4.71% 42, , % Other income , % % , % Operating profit 11, , , , , % 15.67% 43, , % Provisions for bad debts 8, , , , , % % 24, , % Provisions against standard assets % % % PBT 2, , , , , % % 19, , % Tax , , , % % 6, , % PAT 1, , , , , % % 12, , % EPS (Rs) % % % Tier I CRAR % 15.20% 14.89% 15.00% 14.86% 14.24% -6.32% -4.17% 15.20% 14.24% -6.32% Tier II CRAR % 1.74% 1.37% 1.19% 1.29% 2.63% 51.15% % 1.74% 2.63% 51.15% Total CRAR % 16.94% 16.26% 16.19% 16.15% 16.87% -0.41% 4.46% 16.94% 16.87% -0.41% Book Value (Rs) % 1.19% % *Before Provisions & Contingencies 9

10 Balance Sheet Particulars (Rs. mn) Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 YoY (%) QoQ (%) Liabilities Shareholder funds (a) Share capital 2, , , , , % 0.00% (b) Reserves and surplus 110, , , , , % 1.19% Non-current liabilities (a) Long-term borrowings 337, , , , , % 9.82% (b) Other long term liabilities 14, , , , , % 5.80% (c) Long term provisions 38, , , , , % 22.05% Current liabilities (a) Short-term borrowings 49, , , , , % 3.68% (b) Trade payables 1, , , , , % 31.38% (c) Other current liabilities 185, , , , , % 2.74% (d) Short-term provisions 4, , , , , % % Total 744, , , , , % % Assets Non-current assets (a) Fixed assets (i) Property, plant and equipment , % 24.61% (ii) Intangible assets % 16.00% (b) Non-current investments 14, , , , , % -1.17% (c) Deferred tax assets (net) 3, , , , , % 4.41% (d) Long term loans and advances 473, , , , , % 7.31% (e) Other non-current assets % % Current assets (a) Current investments , % 0.00% (b) Cash and bank balances 44, , , , , % 13.93% (c) Short-term loans and advances 205, , , , , % 4.35% (d) Other current assets % % Total 744, , , , , % % 10

11 Key Metrics Q4 FY18 P&L Metrics (Rs. mn) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 YoY (%) QoQ (%) FY17 FY18 YoY (%) Interest Income 24, , , , , % 7.00% 98, , % Securitisation Income 2, , , , , % 4.74% 9, , % Total Interest Income 26, , , , , % 6.77% 107, , % Less: Interest Expenses 12, , , , , % 8.07% 52, , % Net Interest Income 14, , , , , % 5.74% 55, , % Other Income , % % , % Profit After Tax 1, , , , , % % 12, , % EPS (Rs.) % % % Cost to income Ratio (%) 19.35% 20.17% 20.33% 21.32% 20.51% 6.01% -3.79% 21.15% 20.59% -2.65% NIM (on AUM) 6.97% 7.51% 7.48% 7.48% 7.52% 7.88% 0.51% 7.16% 7.50% 4.74% 11

12 Key Metrics Q4 FY18 Balance Sheet Metrics (Rs. mn) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 YoY (%) QoQ (%) FY17 FY18 YoY (%) Networth 112, , , , , % 1.19% 112, , % Book Value (Rs.) % 1.19% % Securitisation done 35,552 22,242 37,914 30,406 34, % 12.18% 112, , % Interest Coverage (x) % 3.29% % ROA (%) 0.81% 2.34% 2.43% 2.44% 0.67% % % 1.76% 1.94% 10.41% ROE (%) 5.33% 15.68% 16.20% 16.19% 4.63% % % 11.61% 13.06% 12.52% CRAR (%) 16.94% 16.26% 16.19% 16.15% 16.87% -0.41% 4.46% 16.94% 16.87% -0.41% 12

13 Borrowing Profile as on Mar 31, 2018 vs Mar 31, 2017 Rs bn Rs bn Retail, 18.5% Retail, 14.6% FY17 FY18 Banks / Institutional, 81.5% Banks / Institutional, 85.4% 13

14 Shareholding Pattern as on Mar 31, 2018 vs Mar 31, 2017 No. of shares outstanding: mn Public, 6.98% Other Corporate Bodies, 11.95% NRI/ OCBs, 0.18% Promoter & Promoter Group, 26.08% Public, 6.87% Other Corporate Bodies, 12.15% NRI/ OCBs, 0.13% Promoter & Promoter Group, 26.08% MF/ Banks, 1.85% MF/ Banks, 3.68% FY17 FY18 FII & FPI, 52.96% FII & FPI, 51.09% 14

15 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 Key Shareholders Current Shareholding % (Mn Shares) Shriram Capital Limited Piramal Enterprises Limited Sanlam Life Insurance Limited Societe Generale SBI Mutual Fund Abu Dhabi Investment Authority New World Fund Inc Oppenheimer International Small-Mid Company Fund Vanguard Emerging Markets Stock Index Fund Stichting Depositary APG Emerging Markets Equity Pool Public & Others Total

16 Update on Subsidiary - Shriram Automall India Limited During the quarter ended March 31, 2018, the Company has sold the controlling stake in its wholly owned subsidiary, Shriram Automall India Limited (SAMIL) to the extent of 16,630,435 equity shares (representing 55.44% of paid-up Rs per share for a total consideration of Rs.15, lacs to MXC Solutions India Private Limited (MXC). Consequently, SAMIL has ceased to be a subsidiary and has been treated as an associate of the Company from February 7,

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

18 About Us About Shriram Transport Finance Co. Ltd. Shriram Transport Finance Co Ltd. is the largest asset financing NBFC with Assets on Balance sheet of Rs. 79, crores and off Balance sheet assets of Rs. 15, crores. The company is a leader in organized financing of pre-owned trucks with strategic presence in 5-10 year old trucks. It has a pan-india presence with a network of 1,213 branches, and employs 23,819 employees including 15,042 field officers. The company has built a strong customer base of approx mn. Over the past 39 ears, 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. 18

19 Thank You

Shriram Transport Finance Company Ltd

Shriram Transport Finance Company Ltd Investor Update Q2 & H1 FY2017 October 25, 2016 Performance Highlights Q2 FY17 vs Q2 FY16 Total Income 11.8% Q2 FY17 Q2 FY16 Rs 27,135.9 mn Rs 24,264.6 mn Net Interest