PERFORMANCE HIGHLIGHTS 2019-20 Sundaram Ring of Excellence

Growth Quality Profitability  Disbursements forthe year at ₹ 15175 Cr. (PY ₹ 17170 Cr.)  Net Profit forthe year at ₹ 724 Cr. (PY ₹ 604 Cr., adjusted forexceptional item)  Assets Under Management grew by 3% at ₹ 29936 Cr. (PY ₹ 28984 Cr.)

 Stage III Assets stood at 2.47% (PY 1.33%) and net of ECL provisions at 1.65%(PY 0.83%).  Capital Adequacy Ratio at 18.4%, Tier-I at 13.2%.  Dividend forthe year 130%.

 During the year, the Company invested ₹ 1000 Cr. to buy out the JV partner’s stake in Sundaram Home Finance Limited. Consequently, Sundaram Home Finance Limited has become 100% subsidiary.

 The Company has opted forreduced rate of Income taxu/s 115BAA of the Income Tax Act 1961.  In accordance with the COVID-19 Regulatory Package announced by the RBI on Mar 27, 2020, the Company has extended moratorium for payment of instalments during Mar 2020 to May 2020. About 64% of the customers in terms of amount have opted for the moratorium. In line with the RBI notification issued onApr 17, 2020, the Company has provided the entire 10% standstill provision of ₹ 27.18 Cr., where asset classification benefit was extended.  Appointment of Wholetime Director : Sri Rajiv C Lochan, Independent Director has been appointed as Director -Strategy with effect from 3rd June 2020. Sri Rajiv C Lochan, aged 48 years, holds a B. Tech degree from IIT Madras, an MS from MIT and an MBA from Columbia Business School. He has 2 decades of experience in the field of management especially in the areas of finance, social sector, and public health. Shareholding Pattern

31-Mar-19 31-Mar-20

35.9%

40.4% 36.5% 38.8%

8.5% 9.8% 1.7% 11.6% 4.0% 12.8%

Public Promoters Mutual Funds & AIFs FIIs / FPIs and NRIs Banks, Financial Institutions & Insurance Companies Financial Summary ₹ in Crore

Receivables Paid-up Dividend Market Year Networth Disbursements Under PAT Capital % Capitalisation Management 2009-10 55.55 1316 5926 10219 226.75 100 2096 2010-11 55.55 1530 7592 12354 295.23 140 2722 2011-12 55.55 1789 9433 15540 355.45 155 3645 2012-13 * 111.10 2087 9991 17645 410.11 90 5265 2013-14 111.10 2405 9719 18158 442.51 100 7359 2014-15 111.10 2978 10012 18734 454.14 105 16859 2015-16 111.10 3313 11444 20699 477.28 110 14450 2016-17 111.10 3746 13218 24036 ** 495.35 115 17940 2017-18 111.10 4134 15712 28648 563.44 120 18634 2018-19 111.10 5044 17170 33447 @ 604.04 # 175 17318 2019-20 111.10 5547 15175 35088 723.95 130 13366 * Increase in Capital by way of 1:1 bonus issue. ** Adjusted for demerger ₹ 460.57 Cr. # Includes special dividend of 50%. @ Excludes exceptional item Market Capitalisation is as on 31st March of the respective years. Profit & Loss Statement ₹ in Crore

Quarter Ended Quarter Ended Particulars 2018-19 2019-20 March 2019 March 2020 Revenue From Operations * 874.51 931.41 3286.02 3804.55 Other Income 7.43 11.61 20.56 84.85 Total Revenue 881.94 943.02 3306.58 3889.40 Finance cost 477.56 515.64 1766.47 2072.03 Operating expenses 138.21 146.13 537.50 585.85 Impairment on financial instruments 42.61 115.69 107.33 286.40 Total Expenses 658.38 777.46 2411.30 2944.28 Profit Before Tax and exceptional item 223.56 165.56 895.28 945.12 Exceptional Item ** 592.43 - 592.43 - Profit Before Tax 815.99 165.56 1487.71 945.12 Profit After Tax 674.75 130.89 1126.31 723.95 Other Comprehensive Income (net of taxes) 1.74 4.65 2.78 63.17 Total Comprehensive Income 676.49 135.54 1129.09 787.12 * Revenue from operations is net of depreciationonoperating lease

During the year 2019-20, the Company has divested its entire holdings in Equifax Credit Information Services Pvt Ltd., resulting in a gain of ₹62.07Cr. (net of tax) accounted under other comprehensive income, as the said investment was measured at fair value through other comprehensive income.

**Exceptional item represents, profit on sale of stake in Royal Sundaram General Insurance Co. Limited to Ageas Insurance International N.V, The Netherlands in February 2019. Hence, the profit numbers of the two years are not comparable ona like to like basis. Balance Sheet ₹ in Crore

Particulars 31-Mar-19 31-Mar-20

EQUITY AND LIABILITIES

Financial Liabilities 25530.90 27824.60 Non Financial Liabilities 74.46 47.54 Equity 5043.81 5547.37

Total - EQUITY AND LIABILITIES 30649.17 33419.51

ASSETS

Financial Assets 30081.43 32725.79 Non Financial Assets 567.74 693.72

Total - ASSETS 30649.17 33419.51 Disbursements and AUM ₹ in Crore

19000 Disbursements 25.0% 17170 20.0% 17000 15712 15175 15.0% 15000 10.0%

13000 5.0%

0.0% 11000 -5.0% AUM 9000 -10.0% 35000 On Books Securitised 25.0% 7000 -15.0% 29936 28984 2017-18 2018-19 2019-20 30000 4.6% 20.0% 4.8% Growth 18.9% 9.3% -11.6% 24964 25000 15.0% 10.6%

20000 10.0% 95.2% 95.4% 89.4% 15000 5.0%

10000 0.0% 31-Mar-18 31-Mar-19 31-Mar-20

Growth 20.4% 16.1% 3.3% Disbursements

5.3% 5.2% 5.2% 2018-19 7.0% 2019-20

11.2% 11.3%

₹ 17170 Cr. ₹ 15175 Cr. 51.8% 53.7%

Asset wise Asset 24.6% 24.7%

CVs Cars Construction Equipment Tractors Others CVs Cars Construction Equipment Tractors Others 3.6% 4.2%

11.6% 12.9%

₹ 15175 Cr. 19.2% ₹ 17170 Cr. 21.1% 61.8% Region wise Region 65.6%

South North West East South North West East AUM

6.6% 6.0% 31-Mar-19 5.3% 6.2% 31-Mar-20

9.7% 10.4%

₹ 28984 Cr. 52.5% ₹ 29936 Cr. 52.5%

Asset wise Asset 25.9% 24.9%

CVs Cars Construction Equipment Tractors Others CVs Cars Construction Equipment Tractors Others 3.5% 3.7%

12.4% 12.8%

₹ 29936 Cr. 18.8% ₹ 28984 Cr. 19.9% 63.6% Region wise Region 65.3%

South North West East South North West East Funding Mix

50.0% 45.7% Total 31-Mar-18 31-Mar-19 31-Mar-20 45.0% Borrowing 39.2% ₹ 24085 Cr. ₹ 26673 Cr. ₹ 29007 Cr. 40.0% 36.7% 35.0% 30.0% 25.4% 25.0% 24.2% 19.9% 20.4% 20.0% 16.7% 16.7% 15.0% 10.9% 11.6%13.2% 10.0% 8.3% 7.7% 5.0% 3.4% 0.0% Debentures Bank Borrowings * Securitisation Deposits Commercial Paper 31-Mar-18 31-Mar-19 31-Mar-20

* Includes a) Term loans b) Commercial Papers and demand loans availed against the sanctioned limits. Key Ratios ₹ in Crore

PAT

750 724 1.2

700 1 650 604 0.8 600 563 0.6 Net worth ROE 550 6000 16.0% 0.4 13.7% 500 5500 14.5% 15.0% 13.2%* 450 0.2 5000 14.0% 400 0 4500 13.0% 2017-18 2018-19* 2019-20 4000 12.0% 3500 11.0% EPS (₹) 50.71 54.37 65.16 3000 10.0% 2500 9.0% 2000 8.0% 4134 5044 5547 * Adjusted for exceptional item 1500 7.0% 31-Mar-18 31-Mar-19 31-Mar-20

Book Value (₹) 372.05 453.97 499.30

* Adjusted for exceptional item Key Ratios

Debt Equity CAR 5.5 25.0%

18.0% 19.4% 5.0 18.4% 20.0%

4.5 15.0% Cost to net Income ROA * 2.50% 4.0 10.0% 39.0% 2.14% 2.17% 2.00% # 37.0% 2.00% 3.5 5.0% 35.0% 5.1 5.0 4.9 1.50% 3.0 0.0% 33.0% 31-Mar-18 31-Mar-19 31-Mar-20 31.0% 1.00%

29.0% 0.50% 27.0% 35.1% 36.3% 34.4% 25.0% 0.00% 2017-18 2018-19 2019-20 * Assets includes securitised / assigned portfolio # Adjusted for exceptional item Portfolio Quality

Stage III % Stage III % (Net of ECL) 3.00% 2.47% 2.50%

2.00% 1.65% 1.50% 1.27% 1.33% 0.83% 1.00% 0.66% 0.50%

0.00% 31-Mar-18 31-Mar-19 31-Mar-20 Credit Ratings

Instrument ICRA CRISIL

Deposits AAA (Stable) AAA (Stable)

Debentures AAA (Stable) AAA (Stable)

SubordinatedDebentures AAA (Stable) AAA (Stable)

Long Term Loans AAA (Stable) AAA (Stable)

Working Capital Facilities AAA (Stable)

Commercial Paper A1+ A1+

Short Term Loans A1+ Branch Network

31-Mar-19 31-Mar-20

No. of Branches : 658 No. of Branches : 610

42 41 68 64

161 387 168 337

No. of Employees : 4055 No. of Employees : 4213 South North West East

With the partial relaxation of the lock down, currently around 500 branches are in operation Subsidiaries, Joint Ventures & Associates

Subsidiaries Joint Venture Sundaram Home Finance Limited Royal Sundaram General Insurance Co. Limited Sundaram Finance Holdings Limited Sundaram Business Services Limited Sundaram Asset Management Company Limited Sundaram Asset Management Singapore Pte. Limited Sundaram Trustee Company Limited Associates of a subsidiary company Sundaram Alternate Assets Limited Axles India Limited Sundaram Fund Services Limited Turbo Energy Private Limited Transenergy Limited LGF Services Limited Sundaram Dynacast Private Limited Sundaram Hydraulics Limited Flometallic India Private Limited Dunes Oman LLC (FZC)

Investments in Sundaram Home Finance Limited and Sundaram Fund Services Limited were accounted as Joint Venture in the previous year Consolidated Results ₹ in Crore

PAT 1250 1161 1050 792 850 730 650 450 Net Worth 250 2017-18 2018-19 2019-20 9000 6677 EPS (₹) 66.28 105.40 71.85 7000 6259 5649 5000

3000

1000 31-Mar-18 31-Mar-19 31-Mar-20

Book Value (₹) 508.47 568.29 606.09 Consolidated Results ₹ in Crore

Particulars Share of Net Worth Share in Profit 31-Mar-19 31-Mar-20 2018-19 2019-20 Sundaram Finance Ltd. 5043.81 5547.37 1126.31 723.95 Subsidiaries: Sundaram Finance Holdings Ltd. (Consolidated) 626.22 401.31 36.39 18.45 Sundaram Asset Management Company Ltd. (Consolidated) 197.94 212.55 28.84 32.69 Sundaram Home Finance Ltd - 1421.07 - 165.89 Sundaram Fund Services Ltd - 36.72 - 18.07 Sundaram Trustee Company Ltd. 1.80 1.88 0.80 0.80 LGF Services Ltd 3.67 3.61 0.25 0.11 Sundaram Finance Employees Welfare Trust 13.86 16.16 1.89 2.30

Non-Controlling Interests in Subsidiaries 1738.91 1455.47 97.65 53.86

Joint Control Entities Sundaram BNP Paribas Home Finance Ltd 639.21 - 72.88 - Royal Sundaram General Insurance Co. Ltd 551.12 544.96 56.63 (38.17) Sundaram BNP Paribas Fund Services Ltd 10.52 - (4.43) -

8827.08 9641.09 1417.21 977.95 Adjustment arising out of Consolidation (828.87) (1508.80) (158.71) (132.55)

Total 7998.21 8132.30 1258.50 845.41 Sundaram Home Finance

Particulars 31-Mar-2019 31-Mar-2020 Disbursements (₹ in Crore) 2449 2113 -Housing 68.6% 71.4% -Non-Housing 31.4% 28.6% AUM (₹ in Crore) 9064 9456 -Housing 69.7% 70.5% -Non-Housing 30.3% 29.5%

PAT (₹ in Crore) 146 218* EPS (₹) 14.37 21.54 Net worth (₹ in Crore) 1252 1421 Book Value (₹) 123.66 140.35

Gross NPA # 2.95% 3.77% Net NPA – IndAS 0.93% 1.63% CAR # 23.5% 23.3%

Branches 115 115 Employees 755 826 # as per prudential norms * includes exceptional income (tax reversal of ₹ 60.25 Cr.) Royal Sundaram

Particulars 31-Mar-2019 31-Mar-2020

Gross Written Premium (₹ in Crore) 3196 3710

PAT (₹ in Crore) 113 * (76)

Net worth (₹ in Crore) 1102 1090

Combined Operating Ratio 108% 111%

Employees 2105 2390

* For the year ended 31st March 2020, the company has provided ₹ 164.11 Cr. (net of tax) towards impairment in respect of debt exposure and MTM on equity investments (PY ₹ 7.17 Cr). Sundaram Asset Management

Particulars 31-Mar-2019 31-Mar-2020

Average AUM (₹ in Crore) 34,384 33,927

-Equity (₹ in Crore) 21,328 22,299

-Debt (₹ in Crore) 13,056 11,628

PAT (₹ in Crore) 29 33

Net worth (₹ in Crore) 198 213

Employees 354 367

Retail Investors 11,87,512 10,87,296 Share Price Movement In ₹

SFL Closing Share Price S & P CNX Nifty 1878 1900 17000 1677 1686 1672 * 1700 1615 1608 1632 1631 1600 1559 15000 1514 1500 1439 12168 13000 1162411789 1203 1300 11474 107141093010863 10531 11000 9789 10114 1100 9521 9174 8598

9000 Nifty CNX P &S

900 SFL Closing Share Price Share Closing SFL

700 7000

500 5000

Jun-19 Jun-17 Jun-18

Sep-17 Sep-18 Sep-19

Dec-17 Dec-18 Dec-19

Mar-18 Mar-19 Mar-17 Mar-20

* Share price movement after 1st Feb 2018 is post demerger Board of Directors as on 29.05.2020

Name of the Director Expertise Qualification Sri S Viji Has over 5 decades of experience in Banking, Finance, Insurance and B.Com, ACA, Chairman Automotive Component Manufacturing Industry. He is the Managing MBA (University of Michigan, Director of Brakes India Private Limited. USA)

Sri S Ram Has over 5 decades of work experience in Vehicle and Component BE (Mechanical), Industry . He is the Chairman of Wheels India Ltd., Axles India Ltd MS (Production Engineering) and India Motor Parts & Accessories Ltd. (Birmingham University, UK)

Sri Raghuttama Rao Has over 3 decades of work experience spanning Manufacturing,B.Tech. (Mech. Engg.) – IIT Raghavendra Financial Markets, Public Policy and Management Consulting. Madras, CMA – ICWAI, P.G.D.M. - IIM Ahmedabad

Sri P N Venkatachalam Has nearly 4 decades of experience in Banking, Finance and Capital MA (Economics), CAIIB Markets. Formerly Managing Director of State Bank of India.

Sri S Mahalingam 4 decades of experience in Finance and Information Technology. B.Com (Honours), FCA Formerly Chief Financial Officer and Executive Director of Tata Consultancy Services. Sri S Prasad Has more than a decade experience in industry as finance FCA professional and 38 years as a practicing Chartered Accountant. Board of Directors as on 29.05.2020

Name of the Director Expertise Qualification Sri S Ravindran 4 decades of experience in Finance and Engineering. He is a Whole B.Com, ACA Time Director of Turbo Energy Private Limited.

Ms Shobhana Ramachandhran 3 decades of experience in General Management and automobile MA (English Literature) industry. She is the Managing Director of TVS Srichakra Limited. Sri Rajiv C. Lochan Has two decades of experience in the field of management B.Tech. (IIT), especially in the areas of finance, social sector, and public health. MS (MIT), MBA (Columbia Business School)

Sri T T Srinivasaraghavan Has nearly 4 decades of experience in Banking and Financial B.Com, Managing Director Services. Has held various operational roles in the Company and MBA (Gannon brings to bear in-depth knowledge of automotive financing. He is University, the Managing Director of the Company since 2003. Pennsylvania)

Sri Harsha Viji Has more than a decade experience in areas of specialisation B.Com, ACA Deputy Managing Director particularly, strategy formulation, joint venture negotiations, new MBA (Ann Arbor, business development. Michigan)

Sri A N Raju 3 decades of experience in the Automobile, Engineering, Finance BSc (Engineering), MBA Director (Operations) and General Management. Key Managerial Personnel

Name Expertise Qualification Sri M. Ramaswamy He has over 30 years of experience in the Company. He is B.Sc. (Statistics), ACA Chief Financial Officer the Chief Financial Officer of the Company from Sep 2011. He is responsible for the Treasury Management, Financial Planning & Accounting, Taxation and Regulatory Compliance. He is a member of the Risk Management Committee and Asset Liability Management of the Company. Sri P. Viswanathan He has over 40 years of experience in the B.Com, FCS Company Secretary & Compliance Officer Company/Group. He became the Company Secretary and Compliance Officer of the Company from Sep 2011. He is responsible for statutory compliance in respect of all laws and regulations applicable to the Company, including Company Law, SEBI and RBI. He liaisons with the Board Members in connection with all Board related actions in the Company. He was Chairman of the Expert Committee on Company law of Madras Chamber of Commerce and Industry and is a Committee Member of Finance Companies Association of India. Disclaimer

This document is for information purposes only and is not and does not form part of an invitation/ offer / advertisement / advise to purchase or sell any securities of the Company.

The materials and information contained in the document are prepared by the Company and are correct and accurate, to the best of our knowledge. No information contained herein has been independently verified by anyone else or approved by any regulatory authorities. No warranty is given as to their accuracy and the company does not accept any responsibility and shall not be liable for any direct or indirect loss caused, arising from and/oruse of this document.

Forward-looking statements, if any, are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant statement.

The contents of the website are subject to changes and reviews from time to time without notice. By accessing the site, you are deemed to accept the disclaimerclause.

Shri M Ramaswamy Shri P Viswanathan Chief Financial Officer Secretary & Compliance Officer Sundaram Finance Limited Sundaram Finance Limited 21, Patullos Road 21, Patullos Road Chennai – 600002 Chennai – 600002 Phone(D) : 044 – 28881341 Phone(D) : 044 – 28881207 Mail : [email protected] Mail : [email protected]