Fincorp Presentation

8/13/2019 Fincorp Presentation

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Muthoot Fincorp Ltd.

March 12


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Agenda

Agenda

Overview of MPG & MFL

Target Market

Products & Branch Network

Financial Highlights



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The beginnings of the Muthoot Pappachan Group (MPG) can betraced back to Kozhencherry a small town in the Southern Stateof Kerala, India.

In 1887, Ninan Mathai Muthoot started a retail business whichwas later diversified into a finance business by his sons.

In 1939, the brothers established the Muthoot Chit FundEnterprises that provided small and medium loans to farmersand merchants.

Within a short span of 10 years Muthoot Chit Fund Enterprisesbecame the largest business house of its kind in Kerala and ahousehold name. The company further ventured in full banking

services specializing in gold loans and advances to smallenterprises and individuals on quick and easy terms.

Ninan Mathai Muthoots younger son, Mathew M. Thomas orMuthoot Pappachan, as he is fondly known, founded theMuthoot Pappachan Group.

Muthoot Papachan Group - a strong legacy


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Today, Muthoot Pappachan Group companies are part of a long standingheritage and a growingfuture

Finance

MCSL MFL Micro Finance MHFL

Hospitality

Muthoot SkychefTaj, KovalamHilton Garden Inn,Other new Hotels

Automotive

Yamaha & HondaJLRHonda (new)Ford (new)

Infrastructure

TechnopolisWind PowerEntertainmentReal Estate

Social InitiativesWomen empowerment & entrepreneurshipArts, Sports & CultureOther social activities


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A RBI registered Non Deposit Taking NBFCpredominantly into Gold Loan Financing

Business Overview

Branch network of 2,188 as on 31st March 2012 covering 15stateswith over 1.6 million active customers

Branch Network

13,000+ trained staffNumber of employees

Total AUM of Rs.7,152 crs as on March 31, 2012Asset Under Management

Total Income Rs.1,546 crs (Mar12)

Net Worth Rs.975 crs (Mar 12)

PAT Rs. 299 crs ( Mar 12)

Financials

CRISIL Short term A1+, Long term A+Strong credit rating

Muthoot Fincorp Ltd with a history of financial prudence and customerservice is well positioned to take on the future


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Board of

Directors

Thomas John Muthoot

(Chairman & Managing Director)

Thomas George Muthoot

(Director)

Thomas Muthoot

(Whole Time Director)

A Vikraman

(Independent Director)

Janamma Thomas

(Director)

R K Nair


A P Kurien


The company is today headed by a mix of wise family & professional boardmembers


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And has a team of professionals manning some of the key functions

A.V. KoshyVP- Audit& Control

Board of Directors ED & GC- George Lamanil

Sr. VP Risk Mgt Vivek Shenoy

Suhas SomanCEO

Nilakantan KrishnanCIO

Bejoy AnthraperSr VP- Sales

Subin KumarSr VP- Strategy & Innov.

KamalMampilly

VP-HR

Biju MenonVP- Risk

Paul JoyVP-ResourcePlanning

N S BoseVP-

Operations

Deepa NairVP-Learning &

Develop.

JosephOommenVP-

Finance

A.S. RaoVP- Infra &Admin

TD MathaiSr. AVP Corporate

Affairs

OtherBusinessVerticals

Tiju EasowVP- Mktng


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Agenda


Target Market



Target Market


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Target Market

Deprived

114.4 Mln Household618 Mln - Population51.5% of the total house holds84.2% lives in rural villages

AspirersAnnual house hold income

Rs 90,000-2,00,000

Deprived(Annual house hold Income below Rs 90,000)

Middle ClassAnnual house hold

incomeRs 2,00,000 -10,00,000

Rich

Aspirers75.3 Mln Household405 Mln - Population33.9%of the total house holds61.2% lives in rural villages

Middle Class28.4 Mln Household153 Mln - Population12.8% of the total house holds33.4% lives in rural villages


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Over 70% of MFLs customer base is informal and a large

proportion is with monthly household income (MHI) between

Rs. 7,500-20,00073% of total customerbase is informal

Source: Survey of MPG customers across 15 cities by Monitor Group

15%

Formal Salaried

Informal Salaried

Informal Self-Employed

26%

59%

43%

53%

4%

More than Rs. 20,000

Rs. 7,500-20,000

Less than Rs. 7,500

12%

Less than Rs. 7,500

22%

Rs. 7,500-20,000

66%

More than Rs. 20,000

Info rmal Salaried

Info rmal Self-Emp loyed


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12%

15%

24%

18%

11%

7%

0.218% 0.025% 0.001% 0.000%0%

5%

10%

15%

20%

25%

30%

0 to 5K 5 to 10K 10 to 25K 25 to 50K 50 to 1L 1L to 5L 5L to 10L 10L to 25L 25L to 50L >50L

52% of our customers are with loan size of less than 25K

52%


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Agenda


Target Market



Productand Branch Network


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Muthoot Fincorp offers a bouquet of products & services; Gold Loanaccounts for more than 95% of revenues


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All products are aligned to various needs of customers and require variedlevels of service capabilities

Explicit need Pull products

LOW HIGH

Need

Typeofproduct

Service Capability

Latent need

Push products

3 minGold

Loan

SD

MF

Insurance

MT

EMI

Health Insurance

Auto Loan

Traders Flexi


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Hence we are building newer channels to ensure we are

reaching the customer & addressing their needs

High Income/

Professionals(Rs. 10,00,000)

Middle Class(Rs 5,00,000)

Lower Middle

Class

LOW HIGH

Simple Sales

- GL, MTOL, WUMT

Other products

- SD, SW

Financia l planning produ cts

- LI, Health, Wealth Mgm t

Branch

Retail / Direct

Custom

erSegment

Wealth mgmtHigh Net worth(Rs. 25,00,000)

Consulting

Capability


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Branch expansion has been more rapid in the last two years

458512

622813

1251

2188

3600

0

1000

2000

3000

4000

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013E


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653543

282

256

111

36

28

12

32

62

9

2,188BranchesFY 2012

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Our branches are spread across 15 states and we are poised to reach moretowns and cities in the next 2 years

3,600Branches by

Mar13

10

2


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New Customer Growth also has been increasing steadily

20

23

26

30

34

0

5

10

15

20

25

30

35

40

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

No of Customers


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Agenda


Target Market


Financial HighlightsFinancial Highlights


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Gold Loan Portfolio and Disbursements at high growth trajectory

1,142

2,309

4,058

7,152

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY 2009 FY 2010 FY 2011 FY 2012

76%

76%

Gold Loan AUM & Growth

102%

3,269

5,812

8,938

16,466

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

FY 2009 FY 2010 FY 2011 FY 2012

54%

78%

84%

Disbursements


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History of growth and Profitability

21,556

44,627

81,489

1,54,648

-

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000

1,60,000

1,80,000

FY 2009 FY 2010 FY 2011 FY 2012

90%

107%

83%

Total Income Rs (Lacs)

3,187

10,686

20,852

29,951

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY 2009 FY 2010 FY 2011 FY 2012

235%

95%

44%

PAT Rs (Lacs)


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Yields and NIMs

11.78%

9.76% 9.31%

12.64%

23.31% 24.82% 25.56%

27.45%

11.53%

15.06%16.25%

14.81%

FY 2009 FY 2010 FY 2011 FY 2012

Yield Cost of Funds Net Interest Margins


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Liability Profile & CAR

21.4%

16.9%14.2% 14.3%

3.7%

6.0%

4.7% 1.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

FY 2009 FY 2010 FY 2011 FY 2012

Tier II

Tier I22.93%

18.88%

25.07%

16.82%

21%

35%

59% 62%

42%

38%

13%12%9%

5% 4%8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2009 FY 2010 FY 2011 FY 2012

PDI Unsec Loans Term Loans CPs

NCDs Assignments Banks


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Gross NPA

0.38%

0.71%

0.96%

0.55%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

FY 2009 FY 2010 FY 2011 FY 2012


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Banking Limits :

Total Working Capital Limits : 5973 Crores

Major Bankers :

IDBI 700 Crores

SBI 600

ICICI 500

PNB 400

SIDBI 400

Axis 350

Term Loans Outstanding : 192 crores

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