Cholamandalam Investment and Finance Company Limited

Corporate Presentation June 2017

 Table of Contents

Corporate Overview

Business Overview

Funding Profile

Business Enablers

Financial Performance

Subsidiaries

2
CORPORATE OVERVIEW

3
 Company Highlights
1 Positioning 2 Exceptional Lineage
Established in 1978, one of Indias A part of the 300 bn Murugappa
leading NBFCs, focused in the rural Group founded in 1900, one of
and semi-urban sector with a India's leading business conglomerates
market capitalisation of 175bn1 with 28 businesses including 8 listed
companies and workforce of 40,000
employees

6 Management 3 Robust Sector Growth

Highly experienced management team Presence across vehicle finance,
with unrivaled industry expertise business finance, home equity
loans, stock broking and
Significant synergies with the
distribution of financial products
Murugappa group, deriving operational
and financial benefits

5 Robust Operating Profile 4

Diversified Footprint
Total Balance Sheet Assets of 378 bn as
Operates from 703 branches across 25
of Jun 2017 with Net NPA of *3.2% and a
states and 90% presence across Tier III
healthy RoA of 4.4%
IV, V, and VI towns
Operating income CAGR of 13% over FY14
One of the leading NBFCs in rural /
to FY17
semi urban areas

1. Market data as on 30th Jun 2017. Source: BSE

* 3 months
4
 Journey So Far FY - 2016
Invested in
White Data
Systems India
Consistently profit making and dividend paying1 company since 1979 with a strong track Ltd with
record of dividends to shareholders 63% stake

CCPS got
converted to
FY - 2014 Equity shares
Total Assets @ 407
under
Management Adopted
FY - 2012 have crossed GNPA
Total business 250 bn
Recognition
assets crossed
at 120 days
130 bn CARE Rating
upgraded AUM moved
Infusion of Equity Sub-Debt to 300 bn
share capital of and PDI by
2,120 mn one notch

Rating Upgrade Comencement
from ICRA of CE Business
FY - 2006
JV with Launch of Tractor
DBS Bank Business FY - 2017
Singapore. FY - 2009 AUM moved
Exited to 370 bn
Commenced Consumer
FY - 1979 FY - 1995 Finance Addition of
Consumer
Commenced Started Business 169 branches
Finance
Equipment Chola FY - 2015
in Tier III
Financing Securities Infusion of
FY - 2013 and IV cities
CCPS of
Total Assets under 5,000 mn
Management Brickwork-
FY - 2007 FY - 2011 have crossed "AA+ Stable"
FY - 2001 India Ratings
FY - 1992 Commenced AFC Status 200 bn rating for NCD
Started Chola Upgraded
Commenced Home Equity
Distribution Sub-Debt from
Business JV with DBS Disbursements Adopted
Vehicle AA- to AA
Finance Terminated crossed 120 bn GNPA
Recognition
Business Adopted
Capital Infused equity at 90 days
GNPA
infusion of share capital of Recognition
2,500 mn 3000 mn at 150 days
by IFC and
other Commencement
PE Investors of HL Business
1. Except 2009, average dividend payout for the last 10 years is 30% on capital.
5
 Major Companies Murugappa Group
Market
Company Name Description
Capitalisation
Cholamandalam Investment and Finance Company Limited is a Non Banking
1,74,883 mn Finance Company and one of the leading financial provider for vehicle finance,
(US$ 2,701 mn) business finance, home equity loans, stock broking & distribution of financial
products
Tube Investments of India Limited offers wide range of engineering products such
1,22,211mn
(US$ 1,888mn)
as Steel tubes, chains, car door frames, etc. apart from e-scooters, fitness
equipment and cycles

1,22,061 mn Coromandel International Limited is the leading phosphatic fertilizer company in

(US$ 1,885 mn) India, with a production capacity 3.2 mn tonnes of phosphatic fertilizer.

Carborundum Universal Limited is a pioneer in coated and bonded abrasives,

94,896 mn
(US$ 1,466 mn)
super refractories, electro minerals and industrial ceramics. The Company
currently has presence in Australia, South Africa, Russia, Canada and Middle East.
EID Parry (India) Limited offers wide range of agro products such as sugar,
54,815 mn
(US$ 847 mn)
microalgal health supplements and bio products, with a capacity to crush 34,750
tones of cane per day (TCD)
Cholamandalam MS General Insurance Company Limited is a JV of Murugappa
th
Unlisted Group with Mitsui Sumitomo Insurance Group of Japan, (5 largest insurance
group across the globe)
Note: Market data as on 30th Jun 2017. Source: BSE and Conversion Rate of 1USD = Rs.64.7379 as on 30th Jun 2017 Source: RBI

6
 SPIRIT OF CHOLA

The fundamental principle of economic activity is that no man you transact with will lose, then you shall not."

7
 Management Board Level
Mr. M.B.N. Rao Chairman & Independent Director
Is a Bachelor of Science in Agriculture, an Associate of the Chartered Institute of Bankers, London, a Certified Associate of the Indian Institute of
Bankers and a Fellow of the Indian Institute of Banking & Finance. Holds two Diploma in Computer Studies from the University of Cambridge and the
National Centre for Information Technology, United Kingdom. Was a Member of the Singapore Institute of Management.
Is the former Chairman and Managing Director of Canara Bank and Indian Bank. Chairman of Canara Bank subsidiaries in Insurance, Mutual Fund,
Venture Capital, Factoring, Computer Services, Online Trading & Broking; Indian Bank subsidiaries in Merchant Banking, Housing and Mutual Fund.
Vice Chairman of Commercial Bank of Vice Chairman of Commercial Bank of India, Moscow (a joint venture of State Bank of India and Canara Bank)
Has over 47 years of varied experience in the fields of banking, finance, economics, technology, human resource, marketing, treasury and
administration.
Has over nine years of international banking experience in Singapore and Indonesia.
Was also the Chairman of Indian Banks Association and a member of various committees constituted by RBI, MOF, SEBI and National Institute of
Bank Management.
Is on the Boards of various reputed companies including E.I.D. Parry (India) Ltd., Ramco Cements Ltd., Taj GVK Hotels and Resorts Ltd.
Member of Overseeing Committee (under the aegis of the Reserve Bank of India to review resolution of NPAs) and is an Expert Member of the
Independent Oversight Committee of the Governing Board for Listing Function of National Stock Exchange of India Limited.
Has received various awards including Best Bank in Public Sector, Corporate Governance, Corporate Social Responsibility and Best performance
awards for Financing to SMEs, Agriculture, Exports during his tenure with Indian Bank and Canara Bank from His Excellency President of India,
Hon'ble Prime Minister, Finance Minister, Minister for Commerce and RBI Governor.
Joined the Board of Chola in July, 2010.

Mr. N Srinivasan, Vice Chairman & Non Executive Director

Graduate in Commerce, Associate member of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India.
33 years of experience in the areas of corporate finance, legal, projects and general management.
Position: Director-Finance of the Murugappa Group, Member of Murugappa Corporate Board and director on the Boards of Tube Investments of
India Ltd., Cholamandalam MS General Insurance Company Ltd. and Cholamandalam MS Risk Services Limited.
Joined the Board of Chola in December, 2006.

Mr. Vellayan Subbiah, Managing Director

Holds a Bachelor of Technology in Civil Engineering from IIT Madras and a Masters in Business Administration from the University of Michigan.
Has over 23 years of experience in the varied fields of technology, projects and financial services.
Has worked with Mckinsey and Company, 24/7 Customer Inc. and Sundram Fasteners.
Is a recipient of the Extraordinary Entrepreneur of the Year - TiECON 2014 Award.
Was the Managing Director of Laserwords between January, 2007 and August, 2010.
Is a Director on the Boards of SRF Limited, Havels India Limited, White Data Systems India Private Limited and certain other Murugappa Group
companies.
Joined the Board of Chola in August, 2010.
8
 Management Board Level
Mr. M.M. Murugappan- Non Executive Director
Holds a Bachelor of Technology in Chemical Engineering from University of Madras and a Master of Science in Chemical Engineering from
University of Michigan, USA.
Has over 39 years of experience in the diverse areas of abrasives, manufacturing, electronics, strategy & business development, technology, R&D
and human resources.
Is a member of American Institute of Chemical Engineers, Indian Institute of Chemical Engineers, Plastics & Rubber Institute and Indian Ceramics
Society.

Mr. Nalin Mansukhlal Shah Independent Director

Is a Chartered Accountant from the Institute of Chartered Accountants in England & Wales.
Has over 34 years of experience in banking and financial services industries.
Was a member of the Governing Board of Deloitte India for several years.
Was a member of the Accounting Standards Board of the Institute of Chartered Accountants of India and is currently a member of the Institutes
Expert Advisory Committee and Technical Reviewer for the Financial Reporting Board of the Institute.
Is a Director on the Boards of various companies including Eimco-Elecon (India) Ltd.,Tata Capital Ltd., DCB Bank Ltd., Kotak Mahindra Asset
Management Co. Ltd. and was also the RBI's representative on the Governing Council of the Banking Codes and Standards Board of India for three
years.
Joined the Board of Chola in July, 2013.

Mr. V. Srinivasa Rangan - Independent Director

Is a graduate in Commerce, Associate member of Cost and Works Accountants of India and Institute of Chartered Accountants of India.
Has over 34 years of experience in corporate finance and banking.
Is an Executive Director at Housing Development Finance Corporation Limited (HDFC Ltd.) and has been associated with the company since 1986.
Is a Director on the Boards of Atul Limited and several other companies in HDFC Group.
Was Conferred the Best CFO in the Financial Sector for 2010 by the Institute of Chartered Accountants of India.
Joined the Board of Chola in July, 2011.

Ms. Bharati Rao Independent Director

Is a post graduate in Economics and a Certified Associate of the Indian Institute of Banking & Finance.
Has over 45 years of varied experience in the fields of project finance, foreign offices, credit and risk management.
Retired as the Deputy Managing Director and Chief Development Officer of SBI, holding concurrent charge of SBIs Associate Banks and Non-
Banking subsidiaries and an advisor for mergers and acquisitions.
Is on the Boards of various companies including Vijaya Bank, Carborundum Universal Limited, SBI Capital Markets Ltd., SBI Caps (UK), SBICAP
Securities Ltd., SBI Global Factors Ltd., Tata Tele Services Ltd., Neuland Laboratories Ltd., Wheels India Ltd. and Delphi-TVS Diesel Systems Ltd.
Joined the Board of Chola in July, 2014.

9
 Corporate Overview
Shareholding Pattern
Chola Finance - Share Price Growth
Institutions, 40%
17%

20%

Public, 7%

0%

Promoters, -20%
FII, 24% 53% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
Chola Finance Sensex

Promoters share holding of 53.13% includes Jun 16 Sep 16 Dec 16 Mar 17 Jun 17
Tube Investments 46.22%,
Ambadi Holdings Private Ltd 4.62%
Chola Finance (/share) 946 1,176 945 964 1,119
Others - 2.24% BSE Sensex 27,000 27,866 26,626 29,621 30,922

Investor Ratios FY15 FY16 FY17 Q1FY17 Q1FY18

Earnings Per share () 30 38 46 43 53
Book value per share () 203 234 276 245 289
Market price per share () 588 713 964 946 1,119
Market capitalisation ( mn) 84,420 1,11,402 1,50,722 1,47,787 1,74,883
Price to Earnings (P/E) Ratio 19.5 19.0 21.0 22.2 21.1
Price to Book Value (P/BV) 2.9 3.0 3.5 3.9 3.9
* EPS is annualised
Market price and Market Capitalisation based on share price as on 30th Jun 2017

10
 Corporate Overview
Business Segments Overview Portfolio Breakup 30-Jun-2017
AUM * ( mn) FY15 FY16 FY17 Q1FY17 Q1FY18 YoY Growth Vehicle Finance
Vehicle Finance
OLDER TRACTOR, 9% CE, 3%
On Book 1,49,215 1,79,144 2,02,709 1,87,650 2,07,462 11% VEHICLES,
13% HCV, 17%
Assigned 27,171 21,859 33,597 20,576 36,480 77%
REFINANCE,
Managed Assets 1,76,386 2,01,003 2,36,306 2,08,226 2,43,942 17% 13%
% of Total 69% 68% 69% 68% 70%
Home Equity
LCV, 22%
On Book 64,487 68,734 66,891 71,952 66,005 -8% 3WHRL &
SCV, 6%
Assigned 8,312 19,784 29,036 20,518 29,803 45%
CAR & MUV,
Managed Assets 72,799 88,518 95,927 92,470 95,808 4% 17%

% of Total 29% 30% 28% 30% 27%

Others Home Equity
On Book 5,340 6,983 9,437 7,559 10,203 35% Commercial,
7%
Assigned - - - - - 0%
Managed Assets 5,340 6,983 9,437 7,559 10,203 35%
% of Total 2% 2% 3% 2% 3% Self
Occupied Others, 5%
Total Residential
Property,
On Book 2,19,043 2,54,861 2,79,036 2,67,162 2,83,671 6% 87%
Assigned 35,482 41,643 62,633 41,094 66,283 61%
Managed Assets 2,54,525 2,96,504 3,41,670 3,08,256 3,49,954 14%
* Assets are net of provisions.

11
 COMPANY PERFORMANCE AT A GLANCE
FY15 FY16 FY17 Q1FY17 Q1FY18 YoY
Disbursements ( mn) Growth
Vehicle Finance 93,627 1,23,830 1,44,710 33,261 38,190 15%
Home Equity 30,434 34,764 30,559 9,914 7,397 -25%
Gold 618 - - - - -
MSME 2,490 3,253 6,663 1,648 1,576 -4%
Home Loans 892 1,746 3,247 745 1,218 63%
Agri 15 209 734 40 97 143%
New Initiatives - - - - 51 -
Total 1,28,076 1,63,803 1,85,913 45,608 48,530 6%
AUM ( mn) *
On Book 2,19,043 2,54,861 2,79,036 2,67,162 2,83,671 6%
Assigned 35,482 41,643 62,633 41,094 66,283 61%
Total 2,54,525 2,96,504 3,41,670 3,08,256 3,49,954 14%
Networth ( mn)
Equity Share Capital 1,437 1,562 1,563 1,563 1,564 0%
Reserves and Surplus ^ 30,289 35,012 41,565 36,676 43,632 19%
Total 31,727 36,574 43,129 38,239 45,195 18%
Profibatility ( mn)
Gross Income $ 35,042 39,679 44,819 10,513 11,835 13%
NIM $ 15,438 19,171 22,511 5,032 6,425 28%
PBT 6,572 8,708 11,056 2,537 3,181 25%
PAT 4,352 5,685 7,187 1,657 2,066 25%
Asset Ratios
Gross Yield $ 16.0% 16.2% 15.9% 15.7% 16.2%
NIM $ 7.1% 7.8% 8.0% 7.5% 8.8%
Expenses 2.6% 2.5% 3.0% 2.5% 3.1%
Losses and Provisions 1.5% 1.7% 1.1% 1.2% 1.3%
ROTA (PBT) 3.0% 3.6% 3.9% 3.8% 4.4%
ROTA (PAT) 2.0% 2.3% 2.6% 2.5% 2.8%
* AUM refers to Own assets + off balance sheet items which have been securitised/sold on a bilateral assignment basis less provisions.
^ FY15 Reserve & Surplus includes Compulsory Convertible Preference Shares of Rs.5000mn (converted to Equity in Sep 2015 @ 407).
$ net off Business origination and outsource cost.
Losses & Provisions, PBT, PAT & ROTA are after considering additional provisions as follows:
FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months+
Standard Asset Provision - 0.30% 0.35% 0.40%
Addl Provision (for 3 months overdue) - - 54 Cr. -
12
 Strong Geographical Presence
Jammu & Kashmir (2) Branch Network
703 703

534 534 117

Punjab (26) Himachal 203
Pradesh (5) 167
94 249
199
Harayana Uttarakhand (9) 164
180
(16) 162 191
Delhi (11) 144
102
53 83 103 116
32 49 36 30
Rajasthan (55) UP (44)
Assam (14) FY15 FY16 FY17 Q1FY18
Bihar (24) A B C D E (Category wise)

West Bengal (38)

Madhya Pradesh Tripura (3)
Gujarat
(59)
(47) Jharkand (19) 21% 21% 23% 23%
Chattisgarh (34)
Maharashtra (63) 26% 26%
Odisha (32) 24% 24%
Goa (1)
26% 26% 24% 24%
Telangana (25)
27% 27% 29% 29%

FY15 FY16 FY17 Q1FY18

Karnataka (37) Andhra Pradesh (36) South North West East

Pondicherry (1)
10% 10% 8% 8%
19% 20% 16% 16%
Tamil Nadu (65)
Kerala (37)
71% 70% 76% 76%

703 branches across 25 states/Union territories: 698 VF and 134 HE (129 co-located
with VF). FY15 FY16 FY17 Q1FY18
86% locations are in Tier-III, Tier-IV, Tier V and Tier-VI towns Rural Semi-Urban Urban
Strong Pan India presence
Note: Figures in brackets represents no. of branches as on 30th Jun, 2017.
13
 Chola - Financial Summary
Disbursements Assets Under Management
( mn) ( mn)

*1,85,913 *3,41,670 *3,49,954

*1,63,803 *2,96,504 *3,08,256
*1,28,076 5,208 10,644 *2,54,525 62,633 66,283
30,559 41,643 41,094
4,015 34,764 35,482
30,434 *45,608 *48,530
2,433 2,943
93,627 1,23,830 1,44,710 9,914 7,397 2,19,043 2,54,861 2,79,036 2,67,162 2,83,671
33,261 38,190
FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18
VF HE Others * Total Disbursements On Book Assigned * Total AUM

Networth Profit After Tax

( mn) ( mn)

*43,129 *45,195 7,187

*36,574 *38,239
1,564 5,685
*31,727 1,563
1,562 1,563
1,437 4,352

1,657 2,066
30,289 35,012 41,565 36,676 43,632

FY15 FY16 FY17 Q1FY17 Q1FY18

Reserves and Surplus Equity Share Capital * Total Networth FY15 FY16 FY17 Q1FY17 Q1FY18

Note: PAT is after considering additional provisions as follows:

FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months
Standard Asset Provision - 0.30% 0.35% 0.40%
Addl Provision (for 3 months overdue) - - 54 Cr. -
14
 Chola - Financial Summary (Contd)
Net Income Margin (A)* Expense Ratio (B)
(Operating Income - Finance Charges)

8.8%
7.8% 8.0%
7.1% 7.5% 3.0% 3.1%
2.6% 2.5% 2.5%

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18

Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C)

1.8% 1.7%
4.4%
1.3% 3.9%
1.2% 3.6% 3.8%
1.1%
3.0%

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18

* net off Business origination and Outsource cost

Note: PAT is after considering additional provisions as follows:
FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months+
Standard Asset Provision - 0.30% 0.35% 0.40%
Addl Provision (for 3 months overdue) - - 54 Cr. - 15
 Performance Highlights Q1FY18 Vs Q1FY17

Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE*

Q1-FY18 48,530 mn 2,066 mn 4.4% 289.2 53.0 18.8%

6% 25% 15% 18% 24% 6%

Q1-FY17
45,608 mn 1,657 mn 3.8% 244.8 42.6 17.8%

* Annualised
16
 ASSET QUALITY

5.0% 0.45
39.7% 40.8% 0.4
4.0% 34.8% 0.35
31.6% 33.1%
0.3
3.0%
0.25
4.7% 4.7% 0.2
2.0%
3.5% 3.6% 0.15
3.1% 3.2% 3.2%
1.0% 2.0% 2.1% 2.1% 0.1
1.4% 1.5% 1.5% 1.6%
1.1% 0.05
0.0% 0
2014-15 2015-16 2016-17 Q1 FY17 Q1FY18
(5 months+) (4 months+) (3 months+) (4 months+) (3 months+)
GNPA Provision NNPA Provision Coverage

Note: Provision coverage is calculated on provision created towards GNPA assets only and does not include provision created towards
income reversals.

17
 Highlights Q1FY18

Disbursements Disbursement for Q1FY18 stood at Rs. 48,530 mn, a growth of 6% YoY.

PAT PAT for Q1FY18 stood at Rs. 2,066 mn, a growth of 25% YoY.

RoE Return on equity at 18.8% in Q1FY18, a growth of 6% YoY.

AUM AUM has crossed Rs 3,49,000 mn

NPA recognition Additional GNPA recognition at 3 months is ahead of one year as per RBI regulation

Launch of mobile app (Gaadi Bazaar ) and Vishesh which is a credit solution on prepaid
New Initiative card model

18
BUSINESS OVERVIEW

19
Vehicle Finance

20
 Vehicle Finance - Industry
Overall CV Mix (in Units) Trend in Domestic M & HCV Sales (in Units)

30% 24% 23% 28%

53,777
46,296
46% 46% 35,954 35,030
46% 50%

23% 30% 31%

22%

Jun-14 Jun-15 Jun-16 Jun-17

HCV LCV SCV/3W Pick ups Jun-14 Jun-15 Jun-16 Jun-17

Trend in Domestic LCV Sales (in Units) Trend in Domestic SCV Sales (in Units)

46,776
43,556
80,131 79,714 41,001
71,633 71,456 37,016

Jun-14 Jun-15 Jun-16 Jun-17 Jun-14 Jun-15 Jun-16 Jun-17

21
 Vehicle Finance Business Model & Positioning
Low Losses 0.3 % CV Industry Low

Chola Position

~65% of disbursements Rates

Principal Operator
are to micro & small New 11 % to 12.5 %
> 50 Vehicles
enterprises and agri Used 14.50% - 16 %
based customer segment Large Operators 26- 50 vehicles
HCV Chola positioning-
R Middle of the pyramid
I through New CVs, R
S Used CVs & MUVs A
Medium Operators 10 -25 HCV Top of the Bottom of the T
K
& LCV vehicles pyramid through SCV E
& older CVs Shubh S
SRTOs HCV & LCV

First Time Users & Small Ticket Operators, older vehicles

HCV, LCV, MUV, Cars & SCV
High High
Losses 3.2 % HCV : Heavy commercial vehicle, LCV : Light commercial vehicle, SCV : Rates
Small commercial vehicle , MUV : Multi utility vehicle , SRTO : Small Road Old Vehicles
Transport Operators
20 - 24 % 22
Vehicle Finance - Key Differentiators
Quicker Turn Around Time (TAT)

Reputation as a long term and stable player in the market

Strong dealer and manufacturer relationship

Good penetration in Tier II and Tier III towns

In house sales and collection team which is highly experienced and stable

Low employee turnover

Good internal control processes

Customised products offered for our target customers

Strong collection management

23
 Vehicle Finance - Disbursement / Portfolio Mix Q1FY18
Well diversified across geography & product segments
Disbursements - State wise Portfolio State wise MP
6% AP 5%
KARNATAKA 5%
MP 6% AP 5%
MAHARASHTRA
MAHARASHTRA KARNATAKA 6% 12% KERALA 4%
10% Pondicherry 0%
KERALA 4%
TELANGANA 4%
Pondicherry 0%
GUJARAT 4% GUJARAT 5%
GOA 0% TELANGANA 5% WEST TN 8%
GOA 0% SOUTH
WEST 22% 26%
WB 5% 20% SOUTH
29% WB 5%
TRIPURA 0% TN 8% EAST
EAST TRIPURA 0% 25% NORTH DELHI 3%
26% NORTH 27%
ODISHA 5%
25% ODISHA 5% HARAYANA 3%
DELHI 2%
JHARKHAND 2% HP 0%
HARYANA 3% JHARKHAND 2%
J&K 0%
HP 0%
CHATTISGARH J&K 0% CHATTISGARH
7% PUNJAB 4%
7%
PUNJAB 4% RAJASTHAN 10%
BIHAR 4% BIHAR 3%
RAJASTHAN 9%
Uttarakhand 1%
ASSAM 2% ASSAM 1% UP 6%
Uttarakhand 1% UP 5%

Disbursements - Product wise Portfolio Product wise

TRACTOR, 9%
TRACTOR CE OLDER VEHICLES, CE, 3%
9% 4% 13%
OLDER VEHICLES HCV HCV, 17%
15% 11%
REFINANCE, 13%

REFINANCE LCV
17% 21% 3WHRL & SCV, 6%
LCV, 22%

3WHRL & SCV, 6%

CAR & MUV, 17%
CAR & MUV
17%

24
 Vehicle Finance - Financial Summary
Disbursements Assets Under Management
( mn) ( mn)
*2,36,306 *2,43,942
1,44,710 *2,08,226
*2,01,003 33,597 36,480
1,23,830 *1,76,386 20,576
21,859
27,171
93,627

38,190
33,261 1,49,215 1,79,144 2,02,709 1,87,650 2,07,462

FY15 FY16 FY17 Q1FY17 Q1FY18

FY15 FY16 FY17 Q1FY17 Q1FY18 On Book Assigned * Total AUM

Income* Profit Before Tax

( mn) ( mn)
34,800 6,819
29,763
27,646 5,550

3,459

9,640 2,098
8,097 1,581

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18

net off Business origination and Outsource cost.

Note: PBT is after considering additional provisions as follows:
FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months+
Standard Asset Provision - 0.30% 0.35% 0.40%
AUM is Net of provisions. 25
 Vehicle Finance - Financial Summary (Contd)
Net Income Margin (A)* Expense Ratio (B)
(Operating Income - Finance Charges)

8.2%
7.5% 7.8%
7.3%
6.7% 3.2% 3.3%
2.8% 2.8% 2.9%

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18

Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C)

3.5%
3.2% 3.1%
3.0%

2.0% 2.0%
1.7%
1.4% 1.3% 1.3%

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18

* net off Business origination and Outsource cost.

Note: Losses & Provisions & ROTA are after considering additional provisions as follows:
FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months+
Standard Asset Provision - 0.30% 0.35% 0.40%
26
Home Equity

27
Home Equity - Overview

Asset Class
Self Occupied Residential Property
Long tenor loans serviced across 134 locations PAN India

Major Players
ICICI Bank
HDFC Bank
AXIS Bank
Bajaj Finance
PSU Banks

Customer Segment
Clear focus on the middle Socio Economic Class (SEC) of B & C
Self Employed individual constitutes the customer base
Focus further refined to Self Employed non professional in such
segments

28
Home Equity - Key Differentiators
Process Differentiator
One of the best turnaround times in the industry
Personalised service to customers through direct interaction with each
customer

Pricing
Pricing in line with Industry maintaining net interest margin
Fee Income adequate to cover origination & credit cost
Leverage cross sell opportunities for additional income
Effective cost management

Underwriting Strategy
Personal visit by credit manager on every case
Assess both collateral and repayment capacity to ensure credit quality

Structure
Separate verticals for sales, credit & collections
Convergence of verticals at very senior levels
Each vertical has independent targets vis--vis their functions

29
 Home Equity - Financial Summary
Disbursements Assets Under Management
( mn) ( mn)
*95,927 *92,470 *95,808
*88,518
34,764
30,434 30,559 *72,799 29,036 20,518 29,803
19,784
8,312

9,914
7,397 64,487 68,734 66,891 71,952 66,005

FY15 FY16 FY17 Q1FY17 Q1FY18

FY15 FY16 FY17 Q1FY17 Q1FY18 On Book Assigned * Total AUM

Income* Profit Before Tax

( mn) ( mn)
11,782
2,609
10,858 2,399
9,037 2,065

2,882 2,928
583 594

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18

* net off Business origination and Outsource cost.

Note: PBT is after considering additional provisions as follows:
FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months+
Standard Asset Provision - 0.30% 0.35% 0.40%
AUM is Net of provisions. 30
 Home Equity - Financial Summary (Contd)
Net Income Margin (A)* Expense Ratio (B)
(Operating Income - Finance Charges)

4.9%
4.6%
3.9% 4.0% 4.0%

0.9%
0.7% 0.7% 0.8%
0.6%

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18

Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C)

3.7%
1.0% 3.2%
0.8% 2.6%
0.7% 2.5%
2.2%
0.6%
0.5%

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18
* net off Business origination and Outsource cost.
Note: Losses & Provisions & ROTA are after considering additional provisions as follows:
FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months+
Standard Asset Provision - 0.30% 0.35% 0.40%
31
Funding Profile

32
 CAR, Credit Rating and ALM Statement
ALM Statement as on Jun 2017 mn
Tier I Tier II Cum
Time Buckets Outflows Inflows Mismatch
Capital Adequacy Ratio Mismatch
21.24 114 Days 7,135 8,155 1,019 1,019
19.68 19.37 1530/31 Days 7,521 8,874 1,354 2,373
18.64 18.73
Over 12 Months 10,462 9,303 (1,159) 1,214
6.42 5.03 5.10 Over 23 Months 12,565 11,990 (575) 639
8.22 5.39
Over 36 Months 18,354 21,954 3,601 4,239
Over 6 Months to 1 Year 57,225 55,616 (1,610) 2,629
Over 13 Years 1,22,833 1,26,437 3,604 6,234

13.02 13.26 13.61 13.34 14.27 Over 35 Years 11,127 29,042 17,915 24,149
Over 5 Years 14,903 34,819 19,917 44,066
Over 20 Years 45,232 1,167 (44,066) -
Total 3,07,356 3,07,356 - -
20142015 20152016 20162017 Q1FY17 Q1FY18 Cumulative mismatch is significantly lower than the RBI stipulated levels
Minimum CAR Stipulated by RBI is 15% of 15% and positive cumulative mismatch in all buckets
Credit Ratings
The Company carries a credit rating of [ICRA ] A1+ and [CRISIL] A1+ for Short Term Instruments
For long term instruments (NCDs) rated with [ICRA] AA / Positive and CARE AA and IND AA Stable
For Subordinated debt, the Company is rated with [ICRA] AA / Positive, IND AA Stable ,CARE AA and CRISIL AA/ Stable
For Perpetual Debt, the Company is rated with [ICRA] AA - / Positive and CARE AA- and IND AA- Stable
For NCDs, Company is rated with AA+ Stable by Brickwork Ratings India Private Limited

33
 Diversified Borrowings Profile
mn
*2,42,068 *2,39,475 * 2,46,580
*2,25,762
*1,94,752
77,072 79,920
1,12,542
1,11,200
27,035 27,300
1,01,965 6,631 4,198
24,710
4,975 27,560 11,386
22,038 12,449 1,02,992 1,04,325
48,466 64,750
39,687
26,087 26,087 28,337 26,087 30,837
Mar-15 Mar-16 Mar-17 Q1FY17 Q1FY18
Tier II Capital Debentures CC / WCDL Commercial Papers / ICD Bank Term loans * Total Borrowings

Particulars Mar-15 Mar-16 Mar-17 Q1 FY17 Q1 FY18

Bank Term Loans 52% 49% 32% 47% 32%
Commercial papers/ ICD 3% 12% 11% 10% 11%
CC/WCDL 11% 6% 3% 5% 2%
Debentures 21% 21% 42% 27% 42%
Tier II Capital 13% 12% 12% 11% 13%

Consistent investment grade rating of debt instruments since inception

Long term relationships with banks ensured continued lending
A consortium of 20 banks with tied-up limits of 38,500 mn

34
Business Enablers

35
 Technology
Overview: Applications
Digitization has been the core focus for the technology function The core lending platform (FinnOne) was upgraded to Version
across mobility, analytics, applications and infrastructure domains. 3.12. Similarly, the accounting platform (Oracle Financials) was
The organization strongly believes that digital technology would be upgraded to version 12.2.3. The underlying technology stack
an integral component for business growth. has also been upgraded suitably.
We adopt a hybrid technology model that allows us to use Analytics
best of breed vendor platforms coupled with A new MIS solution was launched that
custom-developed solutions. delivers better insight into business and
Core infrastructure has been enhanced to a financial performance. Intuitive data
more resilient architecture, enabling the visualization along with ability to drill down
solutions to handle some of the highest loads to branch level performance enables us to
ever seen in the history of the company. drive more focused growth.

Mobility Credit Scoring & Risk Based Pricing Model

- Business Rules driven credit system
With Project LEAP, a Tab based solution has which helps in automated credit and
been deployed to over 8500 of our field force - pricing decision using a scoring model.
enhancing customer experience and improving
operational excellence. Optimal resource Trip loan product was launched in association with
utilization and improved TAT has also been White Data Systems. The platform provides option
achieved with a LEAN before digitize approach. to fund the working capital needs of the transporter.
GaadiBazaar, a mobile platform for brokers to list used cars and
participate in auctions, was launched - deepening broker relations
Our mobile application for customers provides PayNow facility while helping to realize better value for used vehicles.
to help carry out NEFT/RTGS/Debit Card based payments. POS
devices were also deployed across our branches, reinforcing our Vishesh- Revolving credit solution based on prepaid card model
commitment to Governments digital transaction push. has been launched to meet the additional financial needs of the
customers.

36
 Risk Management
Risk Management Committee (RMC): Risk Management (contd..)
RMC comprises Chairman, three Independent Directors and Post sanction monitoring helps to identify portfolio trends and
the Managing Director besides the senior management as implement necessary policy changes
members. Operational risk is managed through
Meets at least 4 times in a year and comprehensive internal control and systems.
oversees the overall risk management frame
work, the annual charter and Robust Disaster Recovery Plan in place
implementation of various risk management and is periodically tested.
initiatives. Implemented a Business Continuity
Framework to ensure the maintenance on
RMC minutes and risk management recovery of operations when confronted
processes are shared with the Board on with adverse events
periodic basis

Risk Management: Internal Control Systems

Established Risk Management Framework SOPs for all business and functions are in
place, Strong IT security system and Audit
Comprehensive Risk registers have been
to ensure Information security
prepared for all units identifying risks with
mitigants and KRI triggers In-house and independent internal audit team
carry out comprehensive audit of HO &
Institutionalized formal Risk Reporting framework
branches with a pre-approved plan and audit schedule
Chola Composite Risk index highlights the top risks
to evaluate the extent of SOP compliance to locate gaps
which is reviewed by RMC (quarterly) and Sr.
Management (monthly) to understand the level of Independent fraud control unit ensures robust mechanism of
risk and act upon suitably. fraud control & detection supported by a disciplinary
committee reporting to Audit Committee and Board
Robust automated credit underwriting process includes
Monthly ALCO meeting to discuss treasury related risk
detailed risk assessment of the borrowers.
exposures within the financial risk management framework of
the Company
Financial Performance

38
 Profit and Loss Account
mn
Particulars FY15 FY16 FY17 Q1FY17 Q1FY18
Disbursements 1,28,076 1,63,803 1,85,913 45,608 48,530
Operating Income* 35,042 39,679 44,819 10,513 11,835
Finance Charges 19,604 20,508 22,308 5,481 5,410
Net Income Margin 15,438 19,171 22,511 5,032 6,425
Expenses 5,619 6,191 8,349 1,692 2,263
Loan Losses and Std Assets Prov 3,247 4,272 3,106 804 981
Profit Before Tax 6,572 8,708 11,056 2,537 3,181
Taxes 2,221 3,023 3,868 880 1,115
Profit After Tax 4,352 5,685 7,187 1,657 2,066
Key Income Ratios
NIM to Income 44.1% 48.3% 50.2% 47.9% 54.3%
Optg Exp to Income 16.0% 15.6% 18.6% 16.1% 19.1%
Optg Exp to Net Income Margin 36.4% 32.3% 37.1% 33.6% 35.2%
ROTAPBT 3.0% 3.6% 3.9% 3.8% 4.4%
ROTAPAT 2.0% 2.3% 2.6% 2.5% 2.8%
* net off Business origination and Outsource cost
Note: Losses & Provisions, PBT, PAT & ROTA are after considering additional provisions as follows:
FY15 FY16 FY17
Provision for Loan Loss - 5 months+ 4 months+ 3 months+
Standard Asset Provision - 0.30% 0.35% 0.40%
Addl Provision (for 3 months overdue)- - 54 Cr.

39
 Balance Sheet mn
Particulars Mar-15 Mar-16 Mar-17 Jun-16 Jun-17
Equity and Liabilities
Shareholders Funds 31,733 36,574 43,129 38,239 45,195
Current Liabilities 78,892 1,27,214 1,05,206 1,25,328 1,18,361
Non-current Liabilities 1,28,106 1,15,095 1,58,877 1,32,491 1,49,086
Total 2,38,732 2,38,732 3,07,211 2,96,058 3,12,642
Assets
Non-current Assets
Fixed Assets 683 1,113 1,401 1,281 1,381
Non-current Investments 602 647 1,924 647 2,193
Deferred Tax Asset (Net) 1,836 2,815 3,152 2,925 3,278
Receivable under Financing Activity 1,54,680 1,81,877 1,99,400 1,90,684 2,02,936
Other Non-current Assets & Loans and Advances 6,678 5,157 6,588 5,202 6,555
1,64,479 1,91,608 2,12,464 2,00,738 2,16,343
Current Assets
Current Investments 73 19 461 11 611
Cash and Bank Balances 3,407 4,905 4,870 6,214 5,106
Receivable under Financing Activity 67,156 77,225 84,753 81,034 86,301
Other Current Assets & Loans and Advances 3,618 5,126 4,664 8,061 4,281
74,253 87,275 94,747 95,320 96,299
Total 2,38,732 2,38,732 3,07,211 2,96,058 3,12,642
De-recognised Assets 35,482 41,643 62,633 41,094 66,283
Total Assets Under Management 2,74,215 2,74,215 3,69,845 3,37,151 3,78,925

40
Subsidiaries

41
 Subsidiaries
mn mn
Cholamandalam Distribution Services Cholamandalam Securities Ltd
144 153
Ltd 128
131 126 134

32 36 43
57 61 16 22
47 36 6 5
25
11 11

FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18
Income PAT Income PAT

Wealth management services for mass affluent and affluent Broking services to HNIs and Institutional Investors
customer segments.
Presence across 15 metros and mini metros
Retail Distribution of a wide range o financial products
Investments, Life Insurance, General Insurance , Home loan &
mortgage products.

mn
White Data Systems India Pvt Ltd
12
0.4 2 3

(5) (3) (10)

(41)
FY16 FY17 Q1FY17 Q1FY18
Income PAT

Freight aggregating business

42
NPA Provisioning Standards
RBI Vehicle Home Other
Norms Finance Equity Products
3 to 14.99 Months 10% VF Prime, CE Home Equity & Rural Finance &
15 to 26.99 Months 20% 3 to 5.99 Months 10% Home Loan Unsecured Loans
27 to 50.99 Months 30% 6 to 23.99 Months 25% 3 to 5.99 Months 10% 3 to 5.99 Months 10%
Above 51 Months 50% Above 24 Months 100% 6 to 23.99 Months 25% 6 to 8.99 Months 33.33%
24 to 59.99 Months 50% 9 to 11.99 Months 66.67%
Above 60 Months 100% Above 12 Months 100%
Older Vehicles
3 to 5.99 Months 10%
Business Finance
6 to 11.99 Months 40%
3 to 5.99 Months 10%
Above 12 Months 100%
6 to 23.99 Months 25%
24 to 35.99 Months 50%
Tractor Above 36 Months 100%
3 to 5.99 Months 10%
6 to 11.99 Months 25%
12 to 23.99 Months 40%
Above 24 Months 100%

Two Wheelers
3 to 4.99 Months 50%
5 to 5.99 Months 70%
Above 6 Months 100%
43
 Contact Us

Our Registered Office:

Cholamandalam Investment and Finance Company Limited (Chola),

Dare House 1st Floor, No. 2, NSC Bose Road, Parrys,

Chennai 600001.

Toll free number : 1800-200-4565 (9 AM to 7 PM)

Land Line: 044 3000 7172

http://www.cholamandalam.com

Email-ID :

Sujatha P-Sr. Vice President & Company Secretary [email protected]

Arulselvan D-Executive Vice President & CFO [email protected]

44
 Disclaimer
Certain statements included in this presentation may be forward looking statements made based on managements current
expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Investment and
Finance Company Ltd and its subsidiaries. There can be no assurance that future developments affecting Cholamandalam
Investment and Finance Company Ltd and its subsidiaries will be those anticipated by management. These forward-looking
statements are not a guarantee of future performance and involve risks and uncertainties, and there are important factors that
could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements.
Cholamandalam Investment and Finance Company Ltd does not intend and is under no obligation, to update any particular
forward-looking statement included in this presentation.
The facts and figures mentioned in this presentation is for informational purposes only and does not constitute or form part of,
and should not be construed as, an offer or invitation to sell securities of the Company, or the solicitation of any bid from you or
any investor or an offer to subscribe for or purchase securities of the Company, and nothing contained herein shall form the basis
of or be relied on in connection with any contract or commitment whatsoever. Nothing in the foregoing shall constitute and/or
deem to constitute an offer or an invitation to an offer, to be made to the Indian public or any section thereof or any other
jurisdiction through this presentation, and this presentation and its contents should not be construed to be a prospectus in India
or elsewhere. This document has not been and will not be reviewed or approved by any statutory or regulatory authority in India
or any other jurisdiction or by any stock exchanges in India or elsewhere. This document and the contents hereof are restricted for
only the intended recipient(s). This document and the contents hereof should not be (i) forwarded or delivered or transmitted in
any manner whatsoever, to any other person other than the intended recipient(s); or (ii) reproduced in any manner whatsoever.
Any forwarding, distribution or reproduction of this document in whole or in part is unauthorised.
The information in this document is being provided by the Company and is subject to change without notice. The information in
this presentation has not been independently verified. No representation or warranty, express or implied, is made to the accuracy,
completeness or fairness of the presentation and the information contained herein and no reliance should be placed on such
information. The Company or any other parties whose names appear herein shall not be liable for any statements made herein or
any event or circumstance arising therefrom.

45
Thank You