Investor Update - lichousing.com

1 Investor UpdateMarch 2018 Population(cr)2 Section 80 CIT Act Deduction on account of principal repayment of up to lakh on home loans from the borrowers gross total income Section 24, IT Act Deduction on account of annualinterest payment of up to Rs. 2 lakh on home loans, where the house is self-occupied. Section 54, IT Act Capital gains from transfer of residential property, if invested is acquiring a residential house,exempt from income taxUrban population (cr)Urbanization Rate %Property cost (rs lac) & AffordabilityIndian housing industry: Strong growth drivers Rising populationGrowing urbanizationImprovement in affordabilityFavorable tax legislations1 Crore (cr)=10 millionSeveral initiatives to promote housing3 Real Estate Regulatory Authority RERA Bill in 2016: 24 out of 35 States & Union Territories have notified RERA Incentives for Builders in Affordable Housing-Union Budget 2016 Budget 2017: Infrastructure Status for Affordable Housing Budget 2018.

2 Affordable Housing Fund to be createdSeveral initiatives to promote housing4 Housing For All by 2022 Launch of Pradhan Mantri Awas Yojana in 2015 100 Smart Cities notified Announcement of Interest Subsidy for Loans upto Rs 9 lacs & Rs12 lacs by Hon ble Prime Minister on (MIG-I & MIG-II)5No. of Age(15-59 years)<15 Years>59 years20-59 years<20 yearsMortgages: Large scope for improving penetration Finance penet rat io n is lo w fo r ho using finance in rural areasFinance penetration in urban and rural areas (housing finance), march fiscal year-ends, 2012-2017 (% )Source: NBFC 010203040502012E2013E2014E2015E2016E2017 EUrban penetrat ionRural penetrat ionIndian mortgage market is significantly under-penetratedMortgage to GDP ratio, March fiscal year-ends, 1 HFY18 Source: ICRA Indian Mortgage Finance Market Update for H1FY20186563514541343120181012-1401428425670 UKUSAS ingaporeHong KongGermanyM alaysiaKoreaThailandChinaIndiaIndia (FY2020E)Cities With population > 1mCreating a Large Addressable MarketMortgage book to witness strong growth going aheadMarch fiscal year-ends, 2011-2019 PNote.

3 1) Includes the overall portfolio of HFCs and only developer and housing loans of : NBFC 0510152025061218243020112012201320142015 20162017E2018P2019P(% )(Rs tn)M ortgage loan book LHS)YoY (RHS)Housing loans to witness strong traction as impact of GST and RERA fade awayMarch fiscal year-ends, 2012-2019 PSource: NBFC 051015202505101520252012201320142015E201 6E2017E2018P2019P(% )(Rs tn)Housing f inance (LHS)YoY (RHS)Mortgages: High growth trajectory LAP market to pick pace post lowering in last two yearsMarch fiscal year-ends, 2013-2019 PSource: NBFC 07142128350123452013E2014E2015E2016E2017 E2018P2019P(% )(Rs tn)LAP loan book (LHS)YoY (RHS)6 HFCs cont inue t o dominat e mort gage marketM arch fiscal year-ends. 2012-2019P (% )Source: NBFC report6663636262606059343737383840404102 0406080100201220132014201520162017E2018P 2019 PBanksHFCM ortgages: HFCs play a key roleHFC cont inue t o dominat e home loan marketYoY increase in home loan portfolio of banks and HFCsSource: ICRA Indian M ortgage Finance M arket Update for H1FY201815181718151326202119181906121824 30201320142015201620171 HFY18 BanksHFC7 HFCs: Home loans dominate mortgage bookHome loans continue to dominate loan book of HFCsPortfolio composition of HFCs, March fiscal year-ends, 2017 (%)Source: CRA Indian Mortgage Finance Market Update for H1FY2018 Home loan, 67 LAP, 15 Construction finance, 10 LRD, 5 Others, 3 HFCs are growing their non-housing loan portfolio at a fast paceYoY increase in loans, March fiscal year-ends, 2014-1 HFY18 (%)Source.

4 CRA Indian Mortgage Finance Market Update for H1FY201820222120231921191819212626273015 1719212325071421283520142015201620171 HFY18 Overall port folioHome loansOther loans819891994200220042009201120122013 IncorporatedIPOAAA RatingGDR IssueCrossed Rs. 500 crs profitCrossed Rs. 50,000 Cr loan portfolio Best HFC by CNBC TV 18 Construction Industry Award Crossed Rs. 1000 cr profit &Rs 75,000 Cr assets20152014 Best HFC by ABP News Crosses Rs 1 lakh cr in portfolio Best Housing Finance Co. by BFSI Awards Best data quality in HFCby CIBILLICHFL: A Journey of 29 Business Today-Best CEO Award Business World -Most Respected Co Award Outlook Money-Best HFC Best HFC by ABP News Best Data Quality by CIBIL Asia Pacific Entrepreneurship Award Power Brands Awards by Franchise India20162017 Crosses 150,000 cr in assets Outlook Money-Best HFC Business Today BFSI Best CEO NSE for highest Debt Issuance9 Highest ratings (AAA) since 2002 More than 22 lakh customers serviced till date Total assets more than Rs150,000 cr 96% of loan assets in retail category Cumulative Disbursements > Rs2,60,000 crsince inception Gross NPAs in retail loans amongst lowest in IndustryLICHFL: Key highlights Shareholding Pattern10 LICHFL: Key highlights243592527130327361514154101000 0200003000040000500002013201420152016201 7 Disbursement (Rs.)

5 Cr) CAGR 14%Loan Portfolio ( ) CAGR 17%Income (Rs. cr) CAGR 16%Profit After Tax (Rs. cr) CAGR 17%11* Provisions Including Provisions on Std. Assets & Teaser LoansLICHFL: Key highlightsGross & Net NPAsTotal Provisions* (Rs cr) Operating Expense to Total IncomeProfit per employee (Rs. lacs)12 LICHFL: Key highlightsEPS (Rs) (Rs 2/-pd up)Book Value (Rs)(Rs 2/-pd up)Return on Avg EquityReturn on Avg Loan Assets13 Trends in retail disbursements 1423,230 24,289 29,255 34,529 38,334 29,976 - 9,000 18,000 27,000 36,000 45,000201320142015201620179 MFY18(% )(Rs cr)Disbursements (LHS)YoY (RHS) - 5 10 15 20 25201320142015201620179 MFY18(% )(Rs lacs)Average t icket size (LHS)YoY (RHS)969692797782 - 20 40 60 80 100201320142015201620179 MFY18(% )Share of home loansLow NPLs in retail segment over the years - 200 400 600 800 1,000201320142015201620179 MFY18(%)(Rs cr)Retail GNPA (LHS)Retail GNPA ratio (RHS)

6 Amongst the lowest GNPAs in the sector with Net Credit losses since inception less than 7 bps23 New Marketing Offices proposed to be opened in FY 2019 9 Regional Offices 23 Back Offices 249 Marketing Offices Rep offices in Dubai & Kuwait Coverage of more than 450 centres 2095 Employees Back officesOperating officesRegional officesCorporate officeNagercoilThiruvananthapuramKottaya mErnakulamKozhikodeThrissurTirumangalamM aduraiThanjavurPondicherryTiruchirapalli CoimbatoreSalemVelloreChennaiHosurMysore MangaloreBengaluruPanjimVashiMumbaiNello reHubliTirupatiBellaryAnantapurKurnoolGu nturKakinadaVijayawadaHyderabadRajahmund ryVisakapatnamWarangalBhubaneshwarKolkat aSilcharGuwahatiSiliguriGangtokPatnaShim laJalandharAmritsarLudhianaChandigarhDeh radunHaldwaniKarnalBareillyGhaziabadNew DelhiAgraLucknowKanpurJaipurAjmerGwalior BikanerJodhpurRajkotUdaipurAhmedabadVado daraIndoreBhopalAllahabadJabalpurVaranas iRanchiJamshedpurRourkelaBilaspurRaipurN agpurJalgaonSuratVapiAurangabadNasikKaly anThaneJogeshwariPuneKolhapurBelgaumGulb urgaNallasoparaKotaHassanErodeKannurKoll amPalghatGandhidhamSataraDurg-BhilaiGora khpurMeerutBehrampur CuttackDhanbadDurgapurJorhatMaldaGurgaon FaridabadNoidaAmbalaBhatindaHisarPatiala Large geographic presenceYearNo of Marketing OfficesNo of Back officesNo of Regional OfficesNo of EmployeesLon PortfolioRscr2003105-6870777220081251469 8521936201319416714467781220182492392095 156176 * (Dec 2017)Widening efficiencies16 HOME LOAN AGENTS (HLAs)(Agents of LIC)DIRECT SALES AGENTS (DSAs)(Small Firms/Companies etc)CUSTOMER RELATIONSASSOCIATES (CRAs)(Individual Agents of the Company)

7 249 Marketing Offices49 branches of LICHFL Financial Services(100% subsidiary of LICHFL)Distribution NetworkTotal No of Agents > 12300: growth of over 20% y-o-y17 Loan Book Portfolio Rs156176 Portfolio Rs151417 Portfolio Rs144534 cr18 Installment to Net Income RatioOn Incremental SanctionsFor To Value RatioOn Incremental SanctionsFor FY1647%For FY1745%For Q2FY1845%For Q3FY1844%Pure Floating Rate LoansTo Outstanding Portfolio As of FY1647%As of FY1770%As of Q2FY1878%As of Q3FY1876%PrepaymentLump Sum/ opening bookFor of Loans Portfolio Stats19 Origination Pattern & Average Ticket Size Data for 9M FY 2018209M FY20189M FY 2017 Return on Average Equity (%)17%19%Return on Average Assets (%) per share (on Rs 2 pd up) Adequacy Ratio Tier ITier IITotalSept Highlights Q3FY1821 Q3 FY18 PAT at cras against crfor Q3FY17 Q3 FY18 Revenue from operations up by 6 % to Rs3738 cr Outstanding Loan portfolio up by 15% to cr Individual Loan Portfolio up by 15% to Rs149986 cr Q3FY18 Disbursements Rs12301 cragainst Rs9685 crup by 27 % Individual Loan Disbursements Rs11323 cragainst Rs8555 cr.

8 Up by 32% Net Interest Income Rs898 cragainst Rs915 cr Net Interest Margins for Q3 FY18 as against for Q3FY17 Gross NPAs at as against as on Net NPAs as against on corresponding dates Individual Loans Gross NPAs at as against on Total Provisions at Rs1227 cras against total Gross NPAs of Rs1360 crExecutive Summary Q3/FY1822 Executive Summary Q3/9 MFY18 VarQ3 FY18Q3 FY17 Var9M FY189 MFY17 InterestIncome on Individual Loans4% on Project Loans46% Fees & OtherFees67% Income 42% Income6% Expenses8% Interest Income(2%) Other Establishment Exp. 5% Provisions & Diminutions7% beforeTax(1%) Tax Provisionincluding Deferred Tax(1%) (2%) crExecutive Summary Q3/9 MFY18 VarQ3FY18Q3FY17 Var9M FY189M FY17 DisbursementsIndividual32%11323855523%29 97624374 Project(13%)978112911%20001975 Total27%12301968421%3197626349 Outstanding PortfolioIndividual15%149986130878 Project38%61894488 Total15%156175135366 Net Interest Margins(%) the Qtr1643013967 Incremental Yield(overall, annualised YTD) Spreads (YTD) crYield & Cost of Funds on portfolio25 Outstanding Borrowings Rs.

9 137629 crSourceWtdAvgCost (%)Banks & Convertible Housing Bonds & Upper Tier * on ProfileDuring Q3FY18, Borrowings were Rs 16430 cr @ * Includes Corporate Deposits of Rs 2749 cr26 Change in Liability Mix Wtd. Avg. cost of FundsBank funding has reduced from 32% in FY12 to 25% in FY14. Retail Deposits increased to * Includes Corporate Deposits of Rs 2749 cr27 Net Interest NPA (Rs. cr)1360759 Gross NPA (%) for NPA (Rs. cr)*598398 Net NPA(%) including standard asset provisions1227969 Gross & Net NPAs*Excludingprovisionsonstandardassets Provisions cover including standard asset provisions90%128%29 Gross & Net NPAs ,neithertheCompanynoritsofficialswouldin anywaybeliableforanyactiontakenornottake nbytheviewersortheusersofthispresentatio norforanyclaims, you31