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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
Overview of MPG & MFL
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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
(Independent Director)
A P Kurien
(Independent Director)
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
Overview of MPG & MFL
Target Market
Products & Branch Network
Financial Highlights
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
Overview of MPG & MFL
Target Market
Products & Branch Network
Financial Highlights
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
24
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
Overview of MPG & MFL
Target Market
Products & Branch Network
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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