Muthoot Finance Ltd · NSE:MUTHOOTFIN

Muthoot Finance — FY2011 Earnings Presentation

28 slides from Muthoot Finance's earnings presentation, May 2011

  1. Slide 1: Financial Results 2010-11

    * OK ° xox * * ok x |] Pasay x, FINANCIAL RESULTS 2010 - 11 Muthoot Finance

  2. Slide 2: Key Business Figures

    KEY BUSINESS FIGURES (Rs. In Millions) FY 2011 FY 2010 Growth NETWORTH Rs. Rs. % Share Capital 3202 3010 6% Reserves & Surplus (Net) 10140 2832 258% Total 13342 5842 128%

  3. Slide 3: Assets and Liabilities

    (Rs. In Millions) FY 2011 FY 2010 Growth ASSETS Rs. Rs. % Gross Retail Loan Assets Under Management 158684 74381 113% Break-up of Gross Retail Loan Assets Under Management : Gold Loan Receivables 157281 73417 114% Loan Against Muthoot Gold Bonds 1311 930 41% Other Loans 93 34 174% Net Retail Loan As

  4. Slide 4: Income, Expenses and Profit

    (Rs. In Millions) FY 2011 FY 2010 Growth INCOME Rs. Rs. % Interest Income 22983 10774 113% Other Income 175 119 47% Gross Income 23158 10894 113% (Rs. In Millions) EXPENSES Interest Expense 10326 4737 118% Personnel Expenses 2209 1169 89% Administrative and Other Expenses 2639 1190 122% (Rs. In Mill

  5. Slide 5: Geographical Spread of Branches

    Geographical Spread of Branches 110% 90% 70% 50% 30% Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 East 1% 1% 2% 3% 4% West 5% 6% 7% 10% 12% North 8% 8% 10% 17% 18% South 86% 85% 81% 70% 67% No. Of Branches 551 707 985 1605 2733

  6. Slide 6: Gold Loan Growth

    Gold Loan Growth (In millions) (In tons) 180000 120 160000 112 157281 100 140000 120000 80 100000 65 60 80000 73417 30 60000 40 39 40000 14201 33001 20 20000 21790 23 0 0 Gold Loan Assets Under Management Weight of Gold Jewellery Pledged

  7. Slide 7: Geographical Spread of Gold Loan Portfolio

    Geographical Spread of Gold Loan Portfolio 100% 95% 90% 85% 80% 75% 70% 65% 60% Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 East 0% 1% 1% 2% 3% West 3% 4% 5% 8% 9% North 13% 13% 14% 15% 14% South 84% 82% 80% 75% 74% Gold Loans Assets Under 14201 21790 33001 73417 157281 Management

  8. Slide 8: Yield on Retail Loan and NIM

    Yield on Retail Loan and NIM 23 21.67 21 20.04 19.47 19.72 19 19.94 17 15 13 11.09 11.07 11.17 11 9.78 10.86 9 10.6 8.95 9.69 8.86 8.77 7 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11 Interest Income on Average Retail Loan Interest Expense on Average Retail Loan Net Interest Margin

  9. Slide 9: Average Gold Loan Outstanding Per Branch

    Average Gold Loan Outstanding Per Branch (In Millions) 60 57.5 55 50 45 45.7 40 35 33.5 30 30.8 Mar 08 Mar-09 Mar-10 Mar-11

  10. Slide 10: Return on Average Retail Loan Asset

    Return on Average Retail Loan Asset (In Rupees) 4.4 4.2 4.24 4.21 4 3.94 3.8 3.6 3.49 3.4 3.46 3.2 3 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11

  11. Slide 11: Asset Quality Ratios

    (Rs. In Millions) FY 2011 FY 2010 Growth ASSET QUALITY RATIOS Rs. Rs. % Gross Non-Performing Assets 460.1 343.6 34% Provision for Non-Performing Assets 69.6 37.1 88% Net Non-Performing Assets 390.5 306.5 27% % of Gross NPA on Gross Retail Loans 0.29% 0.46% -37% % of Net NPA on Gross Retail Loans 0.2

  12. Slide 12: Liability Mix

    LIABILITY MIX (in Millions) Secured Non-Convertible Debentures - 39832 1% 0% Secured Non-Convertible Debentures -Listed - 2150 1% 4% 4% Bank Borrowings - 60529 25% Sell down of receivables under Bilateral Assignment - 41864 26% Unsecured Non-Convertible Debentures - Listed - 1% 2000 Loan from Direct

  13. Slide 13: Debt Rating

    DEBT RATING SHORT TERM RATING DATE OF AMT OF RATING RATING RATING INDICATES COMMERCIAL PAPER Degree of safety with regard to timely payment of interest & CRISIL Rs.2000crs P1+ 09/05/2011 principal on the instrument is very strong ICRA Rs.200crs A1+ 29/03/2011 Lowest credit risk & Stronger credit qua

  14. Slide 14: Geographical Spread of Gold Bond

    Geographical Spread of Gold Bond 100% 90% 80% 70% 60% 50% Mar-08 Mar-09 Mar-10 Mar-11 East 0% 0% 1% 1% West 2% 2% 4% 6% North 5% 6% 9% 12% South 93% 92% 86% 81% Muthoot Gold 12403 19019 27192 39832 Bond Portfolio

  15. Slide 15: Geographical Spread of Subordinated Debt

    Geographical Spread of Subordinated Debt 105% 100% 95% 90% 85% 80% 75% 70% Mar-09 Mar-10 Mar-11 East 0% 0% 1% West 1% 2% 4% North 4% 10% 12% South 95% 88% 84% Subordinated 1099 3246 7105 Debt Portfolio

  16. Slide 16: Profitability Ratios

    PROFITABILITY RATIOS (based on gross income) FY 2011 FY 2010 Growth Rs. Rs. % Interest expense to Gross Income 44.59% 43.49% 3% Selling, General and Administrative expenses to Gross Income 21.77% 23.43% -7% Depreciation to Gross Income 0.78% 1.37% -43% Operational expenses to Gross Income 67.13% 68.

  17. Slide 17: Ratios Based on Gross Average Retail Loans

    FY 2011 FY 2010 Growth (based on gross average retail loans) Rs. Rs. % Interest income to avg. retail loans 19.72% 19.94% -1% Interest expense to avg. retail loans 8.86% 8.77% 1% Net Interest Margin 10.86% 11.17% -3% Other income to avg. retail loans 0.15% 0.22% -32% Net Income Including Other Incom

  18. Slide 18: Break-Up of Gross Income

    Break-Up of Gross Income 28000 23158 24000 175 20000 16000 10894 Other Income 12000 22983 Interest Income 119 8000 6204 142 10775 3686 4000 2323 107 87 6062 2236 3579 0 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11

  19. Slide 19: Operating Expenses to Average Retail Loans

    Operating Expenses to Average Retail Loans 6 5.5 5.45 5.38 5 4.72 4.5 4.59 4.33 4 3.5 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11

  20. Slide 20: Break-Up of Operating Expenses

    Break-Up of Operating Expenses (Rupees in Millions) Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 Personnel Expenses 2209 1169 677 405 266 Rent 603 290 131 82 47 Advertisement 647 331 208 67 36 Postage & Telephone 115 72 27 18 11 Printing & Stationery 111 69 44 31 19 Travelling & Conveyance 113 67 42 27 18 Rep

  21. Slide 21: Break-Up of Operating Expenses (Percentage)

    Break-Up of Operating Expenses (in Percentage) Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 Personnel Expenses 44% 46% 44% 48% 44% Rent 12% 11% 9% 10% 8% Advertisement 13% 13% 14% 8% 6% Postage & Telephone 2% 3% 2% 2% 2% Printing & Stationery 2% 3% 3% 4% 3% Travelling & Conveyance 2% 3% 3% 3% 3% Repairs & Mai

  22. Slide 22: Profit Growth

    Profit Growth (In millions) 8000 7612 7000 6000 5000 4942 4000 3456 3000 1482 2000 2276 970 1000 670 977 0 440 636 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11 PBT PAT

  23. Slide 23: Networth

    Networth (Rupees in Millions) 15000 13342 13000 11000 9000 7000 5842 5000 2141 3000 1597 3624 1000 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11

  24. Slide 24: Return on Average Equity

    Return on Average Equity (In Percentage) 55 51.5 50 48.1 45 40 35.1 35 33.9 34 30 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11

  25. Slide 25: Capitalisation Ratios

    FY 2011 FY 2010 Growth CAPITALISATION RATIOS Rs. Rs. % Gross Outside Liabilities (Including assignment) 168184 78667 114% Outside Liabilities (excluding assignment) 126320 58584 116% Free Cash & Bank Balances 10989 4703 134% Tangible Networth 13342 5842 128% Gross Outside Liabilities (Including assi

  26. Slide 26: Capitalisation Ratios

    FY 2011 FY 2010 Growth CAPITALISATION RATIOS Rs. Rs. % Capital Adequacy Ratio 15.82% 14.79% 7% Tier I 10.62% 9.86% 8% Tier II 5.20% 4.93% 5% Book Value Per Share 41.67 19.41 115% Return On Networth 51.52% 48.08% 7%

  27. Slide 27: Human Resources

    Human Resources 19000 17000 16688 No: Of Employees 15000 13000 11000 9745 9000 7000 3999 5979 5000 3102 3000 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11

  28. Slide 28: Thank You

Muthoot Finance — FY2011 Earnings Presentation on 6ix