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AJIVIKA FINANCE ANALYST MEET

AJIVIKA FINANCE ANALYST MEET. Hard work. Discipline. Quality Output. Ajivika’s lending benefits 5000 women in 35 villages. JUNE 2 01 8. AJIVIKA FINANCE LIMITED (Formerly known as ‘ Kohli & Kohli Financial Consultants Ltd ’) Corporate Identity No . U74120CH1986PLC006885

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AJIVIKA FINANCE ANALYST MEET

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  1. AJIVIKA FINANCEANALYSTMEET Hard work. Discipline. Quality Output Ajivika’slending benefits 5000women in 35villages JUNE 2018 AJIVIKA FINANCELIMITED (Formerly known as ‘Kohli & Kohli Financial Consultants Ltd’) Corporate Identity No.U74120CH1986PLC006885 www.ajivikafinance.com This presentation is solely for viewing. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval fromAJIVIKA FINANCE Limited.

  2. CONTENTS Figures rounded off to the nearest digit across the presentation. Figures and ratios have been regrouped wherevernecessary. 2

  3. OPERATIONS 3

  4. AJIVIKA FINANCEUSES GRAMEEN MODEL TO PROVIDE MICRO ENTERPRISE LOANSAT THE DOORSTEP OF LOW INCOMEHOUSEHOLDS • RecruitMembers Conduct projection meetings • Lend only towomen • Group of10 at least • Lendonly for income generatingactivities • JointLiability • Weeklyinstalments • PrimarilyNon-Agri Survey avillage • Number ofHouseholds • Politicalsituationand • Communalsensitivity • RoadAccessibility • Activities inVillage • Number of MFILenders • DeliverDoorstep service • Conduct Centre meetings at group leader’s place • Centre meetings conducted between7 • A.M to 12P.M toavoid disturbance to work schedule • ProvideTraining • CGT* and GRT* are conducted • Group formation policy (avoid relatives and stay closely) • Financial literacy training on products, interest rates 4 *CGT: Compulsory Group Training, GRT: Group Recognition Test, Loans are given primarily for non-agriactivities

  5. OUR RELENTLESS FOCUS ON OPERATING MODEL IS THE KEYDIFFERENTIATOR Parameter Status • WomenCustomers • Group Lending -JLG • Loans for Income generatingactivities • Ruralcustomerbase • Loans for Non-agriactivities • 100% • 100% • 99% • ~60% • 100% GrameenOperating Model • We are focused initially in states of UP, UK, PUNJAB, HARYANA • We remain rural focused (>50%) while Industrygrowth is skewed towards urban(60%) • Aiming for a 100% growth in number of borrowers • GeographicFocus GrowthAnatomy • RuralFocus • Robust Borrower growth • Rs 20,000 and Rs 30,000 • LoanProducts • 5. • 3000 (projected to expand to 7,000 by the end of FY 18-19) • 12 months • No. ofdistricts ExtensiveReach* • No. ofcustomers • Average Vintage ofBranches Efficiency* • 600 ( Amongst Highest in Industry for Fortnightlymodel) • Borrowers managed per CenterManager Return Generation • Interest rate of 30% • Interestrate 5 *As on 30th June2018

  6. PORTFOLIO GROWTH TRAJECTORY Collection efficiency of 100% INRLAKHS 3132 GrossLoan Portfolio 2609 2154 1685 1365 1020 710 468 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Gross Loan Portfolio is expected to cross 50 crores by FY 21 Pragmatic strategies ensurepromptrepayment 6

  7. BORROWERGROWTH TRAJECTORY 18400 BORROWERS 15400 12600 9900 7900 5800 4100 3000 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 BRANCHES 3 5 6 8 9 12 16 20 STAFF 17 27 31 39 53 61 65 78 6

  8. INFORMATION TECHNOLOGY & ORGANIZATION EXCELLENCE AND SERVICE QUALITY(OESQ) 8

  9. PROCESS AND TECHNOLOGYEVOLUTION • Secured database with state – of – the art protection and anti theft procedures • Platform readyto build solutions • on-demand • New systems (Cross- sell/MemberHelpline) • Elastic Cloudinfra • Millions of Transactions/day • Zero downtime • Reportingtimelines shrunk tohours • In-house builtsolution • Configurableworkflows • IntegrationOn-demand • Secured • Loads of features for productivity gains & Complianceadherence Cashless disbursements Equipped Loan Officers withSmart phones Leveraged Connectivity androlled out CRM and ERP solutions for efficiency gains. • Consortium of Networkproviders • Real-timedata • Visibility for Operations and beginning productivitygains Rolled out arobust & multi featured lending platform System is accessible from any branch 9

  10. OESQ: MINIMIZING RISK, MAXIMIZING CUSTOMER SATISFACTION AND EFFICIENCIES Maximizingcustomer satisfaction through customerconnect • Best in class grievance redressalcenter which services more than 2K inbound enquiries and service requests permonth • Out bound program which connects clients for feedback andsuggestions • Presence ofOmbudsman who oversees the client protection framework MaximizingEfficiencies • Speeding up GRT through technology and credit history analytics • Saving one man-day per week perperson • Center meeting timereduction • Distance travel optimization through digital route mapping (first phase of roll out in 2branches) • Reduction in traveltime • Improvement in CenterManager timeutilization Minimizingrisk • Cashless disbursementinto Bank accounts • Extensive emphasis on verbal pledge • Meeting the maximum norms on KYC, data quality and credit bureau compliances • Operationalsafeguards • Supervisory monitoring being trackedcentrally • Checkers in branch ensuring 100% KYCcompliance Pilotinitiatives • Currently piloting Aadhaar : • To identify the client usingbiometrics • Instant loanapproval • Further reduces center meeting time by 10 minute, Center Manager can handle one additional center perday • High quality KYC data for Credit Bureauenquiries • Resultant customer delight on instant approval and possibility of sameday credit into bankaccount 10

  11. SETTING BENCHMARKS ON KYC AND CREDIT BUREAUCOMPLIANCES • All enquiries are with either Voter ID or with Aadhaar which are two most reliable IDs for this segment • 100% loan clients have either Aadhaar (82%) or Voter ID (81%), 64% clients haveboth Robust KYCnorms Setting benchmarksin creditcompliance • Consider all lenders (incl. Banks BC portfolio, NBFCs, MFIs) for the 2 MFIcriteria • 100% bureau enquiries sent with 2 IDs: First in the industry (started in Oct’14) • Weekly submission to all 4 bureaus (Equifax, Highmark, CIBIL, Experian)

  12. INTERNALAUDIT

  13. INTERNAL AUDIT PLAYS A CRITICAL ROLE IN ASSESSING PROCESSCONTROLS • All branches are inspected monthly based on a 4 tier gradingsystem • Grading linked to incentives/appraisals of fieldstaff • Special audits viz. headcount, fixed assets verification, 100% document checketc. Strengths • Independentfunction • Reports to the Audit Committee of the Board ofDirectors • Head Office audit by SGR & Associates Governance model Note: * Approximately 30% of the clients are covered by Internal Audit in an year during the branch audits. Clients visited on a sample basis to check for Loan confirmations, Loan utilization (LUC) , arrears and awareness on Client Protection Principles(CPP) ^ Fixed Assets are verified on Annualbasis

  14. RISKMANAGEMENT

  15. KEY RISKS AND MANAGEMENTSTRATEGIES

  16. HUMANRESOURCES 16

  17. EXPERIENCED TEAM AND STRONG WORK ENVIRONMENT Strong & Experienced teamhelps sustain andscale Talent Attractionstrategy: Best Inclass Total ValueProposition Competitive fixed salary, coupled with attractive incentive schemeand top of the industry employeebenefits Job with personalgrowth and customerimpact Highly respectable and responsible job for a 20 years oldyouth, making tangible impact on ourcustomer. Training and retentionstrategy: • A dedicated training team of 3trainers • Motivational speeches and seminars forentry leveltrainees • 96% of the training investment is done on the fieldstaff Extensive processand producttraining RetentionStrategy High growth career path coupled with significant increase in‘Employability’ 17

  18. CORE MANAGEMENTTEAM

  19. CORE MANAGEMENTTEAM Mr. Yashwardhan Sahai, Chief Managing Director Mr. Sahai graduated from IIT Kharagpur and holds post graduate degree from IIM Bangalore. His expertise lies in managing operations in a large business environment, formulating business strategies and identifying new markets. He started his career in 1987 as a Senior Management Trainee with CEAT Ltd, the flagship tyre Manufacturer. He became the youngest Product Manager. Later he worked at Honda Power and BPL in senior positions. Post 2000 he largely worked in the Telecom industry with Market Leaders Airtel, Essar and BhartiInfratel. In 2014 he joined the erstwhile American Tower Company in Senior Management Position and in early 2016 founded a Company Blue Run Investment Consultants pvt Ltd. He is currently holding the position of Chairman and Managing Director at Ajivika Finance.

  20. CORE MANAGEMENTTEAM Mr. Anuj Kumar, Executive Director Anuj Kumar graduated from Bangalore University with degree in Engineering. He is an E- business application development professional. He is having a long career of 18 Yrs. in financial industry. He is one of the key members who have been instrumental in establishing Micro Finance operation in North India. He carries more than 18 years of experience in establishing and running Micro Finance and MSME Finance Institutions. Amongst the diverse experiences, his expertise lies in building huge businesses from scratch, managing large teams, key relationship management and handling all the dimensions of the business. He was the IT head of Capital Trust Limited, a BSE listed NBFC engaged in the business of MSME financing. He was among the key members of Capital Trust limited who took the company to level of 500 Cr at the time of leaving the company in year 2016. He developed the platform for the company from scratch. Company still uses the same IT platform for their business. He is an Executive Director spear heading IT and Technology at Ajivika Finance

  21. CORE MANAGEMENTTEAM Mr. Kamal Kant Dang, CEO Mr. Kamal Kant Dang is a post graduate (M.Com) and has a large experience in starting new ventures. He started his career as Founder of a finance company Vishal Financiers and ran it over 10 years in the automobile finance sector.  He is also associated in different businesses related to education industry. He has also ran Computer education centers in various places in western UP including Hapur, Moradabad and Barreilly. He started a Business School in Noida in the name of Hierank Business school in 2005. Hierank is one the leading business schools offering BBA and MBA degrees in Delhi NCR for over a decade. His contribution in establishing Hierank includes completion of building from scratch, before target time and establishing awareness of the college in the neighboring states. He continues his financing activities by providing corporate debts to leading colleges, Builders, Merchants in western UP. He is currently holding the position of CEO at Ajivika Finance.

  22. Senior Executives

  23. THANKYOU For any investor relations queries, please email toinfo@ajivikafinance.com

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