Future On Track - Indian Railway Finance Corporation Limited

The performance highlights of Indian Railway Finance Corporation Limited for the nine months ended 31st December 2022. It includes key strengths, AUM growth, strategic role in the growth of Indian Railways, low risk model, competitive cost of borrowing, financial performance, and regulatory exemptions.

• Indian Railway Finance Corporation
• performance highlights
• AUM growth
• strategic role
• low risk model
• competitive cost of borrowing
• financial performance
• regulatory exemptions

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1. Indian RailwayFinanceCorporation Limited Performance Highlights For Nine months ended31stDecember 2022 14thFebruary2023 PRIVATE & CONFIDENTIAL

2. KeyStrengths AUM CAGR (FY19-Q3-23) Dedicated market borrowing arm for the Indian Railways (IR) AUM has grown at 7.89% on 9M basis for FY 2022-23 and stands at INR 4,48,032.64 crore Strategic role in growth of IndianRailways 1 25.40% GNPA(Dec 2022) Strategic relationship with the MoR enables us to maintain a low risk profile Cost-PlusStandard LeaseAgreements with MoR Consistent spreads on Rolling Stockand ProjectAssetsover last three years Low risk, Cost Plus business model 2 NIL LongtermRatings Highest credit rating for an Indian issuer from ICRA,CRISIL & CARE Diversifiedfunding sources of various maturities & currencies Competitivecostof Borrowing to keep finance costunder check Competitive Cost of Borrowings AAA 3 CumulativeGapover 5 yrs IRFC borrows on a long-term basisto align with the long-term tenure of the assetsfinanced MoR is required toprovide for any shortfall in funding under the Standard Lease Agreement. Strong Asset-Liability Management 4 NIL NetWorth (Dec-2022) Profitgrowth of 8.96% on 9M basis for FY 2022-23. Revenue from operations grew by 22.88% on 9M basis for FY 2022-23. Low overheads, administrative costsand high operational efficiency Healthy return ratios RoA at 1.42% and RoE at 14.58% for Q3FY23 (Annualised) Consistent financial performance 5 INR44,142.14 Cr TaxLiability Exempted from the RBI s asset classification norms, provisioning norms, exposure norms to the extent of direct exposure on MoR and is , is not required to pay minimum alternate tax with effect from Fiscal2020 Enjoys Regulatory Exemptions 6 NIL PRIVATE& CONFIDENTIAL 2

3. Strategic role in financing growth of Indian Railways Indian Railways is fairly underpenetrated compared to the Global peers Route Km per million population (2017) 592 464 437 405 134 50 49 Russia USA France Germany Japan India China IRFC funding to MoR INR Bn 1,900 1,552 67.3% 1,481 1,334 1,020 48.2% 39.4% 36.0% 31.4% FY18 FY19 FY20 FY21 FY22 Railways Capital Outlay IRFC Disbursement as % Railways Capital Outlay Source: National Infrastructure Pipeline , Report of the Task force , Department of Economic affairs , Ministry of Finance , GoI Volume I 3

4. Strategicrole in financinggrowthof Indian Railways AUMBreak-Up(9M FY23) Assets UnderManagement (Figures in INR crore) Minimalcreditrisk: 98.67%of AUM isexposureto MoR 448032.64 429824.40415256.31 368007.20 Loan to RVNL & IRCON, 1.33% 270505.73 203047.66 155499.65 Advance against Railway Infrastructu re Assets to be lease (including National projects), 49.81% 2017-18 2018-19 2019-20 2020-21 2021-22 Upto Q3/21Upto Q3/22 Lease Disbursements Recievables, 48.86% 104369 71392.069 59899 52531.84 43745 36722.25 17675.26 FY 18 FY 19 FY 20 FY 21 FY 22 Upto Q3 21 Upto Q3 22 PRIVATE& CONFIDENTIAL 4

5. Lowrisk,cost-plusbusinessmodel Spreads Charged byIRFC Rolling Stock Project Assets 0.40 0.40 0.40 0.40 0.35 0.35 0.35 0.35 FY 19 FY 20 FY 21 FY 22 IRFC raises funds atlowest possiblecostamongstthe Term Lending Institutionsin India. This directly benefits the IR in terms of savingin finance cost IRFC charges a minimal costof margin (spread)over its already low-costof borrowing, to MoR, but stillexhibitsconsistent financialperformance,owingto its robustbusinessmodel PRIVATE& CONFIDENTIAL 5

6. Competitive cost of borrowings based on strong credit ratings in India and diversifiedsourcesof funding Borrowing Mixason 31stDecember2022 Particulars (31st December2022) Domestic: Rating Outlook Longtermrating Term Loan, 32.22% CRISIL CRISILAAA Stable Bonds (Including 54EC), 44.80% ICRA ICRAAAA Stable STL, 0.97% CARE CAREAAA Stable NSSF, 4.34% Shorttermrating ECB, 17.68% CRISIL CRISILA1+ ICRA ICRAA1+ Borrowing Mixason 31stDecember2021 CARE CAREA1+ International** Term Loan, 31% Moody s Baa3 Stable Bonds (Including 54EC), 47% StandardandPoor s BBB- Stable Fitch BBB- Stable STL, 2% NSSF, 5% JapaneseCreditRating Agency BBB+ Stable ECB, 15% Diversified sources of funding,creditratingsandstrategicrelationshipwiththeMoR, haveenabledIRFC to keep costs of borrowingcompetitive **OnparwithIndia s sovereign ratings; PRIVATE& CONFIDENTIAL 6

7. ConsistentFinancialPerformance Net Interest Income & PAT 6,205.38 6,089.83 Net Interest Income PAT 5,042.93 5,009.31 4,597.34 4,514.61 4,416.13 4629.89 3,224.53 3,192.10 2,781.58 2,553.80 2,139.93 2,001.46 FY 18 FY 19 FY 20 FY 21 FY 22 UPTO Q3 21 UPTO Q3 22 Negligible Operating Expenses Operating Exp Operating Exp as a % of Total Income 30 0.16% 0.15% 0.14% 25 0.13% 0.13% 0.12% 0.11% 0.11% 0.11% 20 0.10% 0.10% 15 0.08% 27 0.06% 22.61 10 17 15.57 0.04% 14 14 13 5 0.02% 0 0.00% FY 18 FY 19 FY 20 FY 21 FY 22 Upto Q3 21 Upto Q3 22 Allfiguresarein INR Crore,unless specifiedotherwise PRIVATE& CONFIDENTIAL 7

8. ConsistentFinancialPerformance ReturnRatios CRARandNetGearingRatio 9.47 14.86% 14.85% 9.34 14.58% 9.13 9.00 13.34% 12.32% 7.70 11.57% 7.00 6.60 9.47% 440%466.34%482.11% 420% 395% 347% 321% 1.47% 1.42% 1.42% 1.38% 1.35% 1.32% 1.16% 2017-18 2018-19 2019-20 2020-21 2021-22 Net Gearing Ratio Upto Q3 21 Upto Q3 22 2017-18 2018-19 2019-20 2020-21 2021-22 RoE Upto Q3 21 Upto Q3 22 CRAR RoA NetInterestMargin NIM 1.83% 1.62% 1.57% 1.57% 2.00% 1.53% 1.45% 1.38% 1.50% 1.00% 0.50% 0.00% 2017-18 2018-19 2019-20 2020-21 2021-22 UPTO Q3 UPTO Q3 22 21 (*) All figures are in INR Crore, unlessspecifiedotherwise PRIVATE& CONFIDENTIAL 8

9. Key Ratios-Q3 of FY2022-23 9 Months ended31stDecember 2022 Particulars 1 .53% (Annualized) Net Interest Margin 14.58% (Annualized) ReturnonEquity Net GearingRatio 9.13x 482.11% CRAR 5.11(Annualized) EPS PRIVATE& CONFIDENTIAL 9

10. SnapshotofKeyFinancials 9monthsended Year-Ended Particulars 31stDec.2022 31stDec. 2021 Growthin% 31stMarch2022 Revenue fromOperations 22.88% 20299.26 17,655.34 14,367.54 FinanceCost 29.11% 14,074.78 12,552.50 9,721.96 Net Interest Income 8.93% 6,205.38 5,042.92 4,629.89 ProfitBefore Tax 5,009.31 4,597.34 8.96% 6,090.15 5,009.31 4,597.34 8.96% ProfitAfter Tax 6089.84 5,014.59 4,597.67 9.07% Total Comprehensive Income 6,089.34 Allfiguresare in INRCrore PRIVATE& CONFIDENTIAL 10

11. ThankYou PRIVATE& CONFIDENTIAL 11

12. Disclaimer * The presentationis preparedbased on unauditedfinancial statementsof IRFC for nine months period ended31stDecember 2022 *There is a possibilityof Ind As financialresults and the additionaldisclosures to be updated, modified or amended because of adjustments which may be required to be made on account of introduction of new Standardsor its interpretation,receiptof guidelines or circulars from regulatory bodies and/orReserve Bankof India *This presentationmay contain statementswhich reflects managementscurrent views and estimatesand may not be constructedas forward looking statements.The future involves uncertaintiesand risk that couldcause actual results to differ materialityfrom the current views beingexpressed.Potential uncertaintiesand risk include factors such as general economic conditions, currencyfluctuations, competitive product andpricing pressures, industrial relationsandregulatory developments. * We do not update forward lookingstatementsretrospectively.Such statementsare valid on the date of publicationand can be super ceded. * Figuresare regrouped / reclassifiedto make them comparable. * Analyticaldata are best estimatesto facilitates understanding of businessand not meant to reconcile reportedfigures. * Answers will be given only to non pricesensitive questions. *This presentationis for informationpurposeonly and do not constitutean offer or recommendation to buy or sell any securities of IRFC. Any action taken byyou on thebasis of informationcontained in presentation is your responsibilityalone and IRFC or its directorsor employees will not be liable in any manner for the consequencesof suchactionstaken by you. PRIVATE& CONFIDENTIAL 12

13. Financials-P & L Statement Statement of Profit and Loss (All amounts in INR Crore, unless stated otherwise) Profit & Loss For Nine Months Ended 31.12.2021 For Nine Months Ended 31.12.2022 Particulars FY 21-22 Revenue From Operations Interest Income 5548.80 0.14 5381.71 0.40 7294.67 1.00 Dividend Income Lease Income 12106.41 8985.43 13003.60 Total Revenue From Operations 17655.34 14367.54 20299.26 Other Income 4.54 1.25 2.33 Total Income 17659.89 14368.80 20301.60 Expenses Finance Costs Impairment on Financial Instruments Employee Benefit Expense Depreciation, Amortization and Impairment Other Expenses 0.00 0.00 0.00 12552.51 -3.53 9721.96 -0.18 6.32 9.31 34.05 14074.78 0.46 10.75 14.03 111.43 8.84 10.74 82.02 Total Expenses 12650.58 9771.46 14211.44 Profit Before Exceptional Items and Tax 5009.31 0.00 4597.34 0.00 6090.16 0.00 Exceptional Items Profit Before Tax 5009.31 0.00 0.00 0.00 4597.34 0.00 0.00 0.00 6090.16 0.00 0.00 0.32 Current Tax Deferred Tax Adjustment for Earlier Years Profit for the Period from Continuing Operations 5009.31 4597.34 6089.84 13 PRIVATE& CONFIDENTIAL

14. Financial-Balance Sheet 1/2 Nine months Ended Balance sheet as at 31.12.2022 Nine months Ended Balance sheet as at 31.12.2021 FY 2021-22 Particulars ASSETS Financial Assets Cash And Cash Equivalents Bank Balance Other Than Above Derivative Financial Instruments Receivables - Lease Receivables Loans Investments Other Financial Assets Total Financial Assets Non-financial assets Current Tax Assets (Net) Property, Plant And Equipment Other Intangible Assets Other Non-Financial Assets Total Non-Financial Assets Total Assets 652.81 156.75 519.97 115.35 122.54 24.65 146.49 156.88 202.33 2,18,927.56 5,933.13 1,78,759.89 6,824.81 2,00,692.50 6,824.81 14.58 11.31 10.00 2,30,270.65 4,56,475.44 2,30,881.54 4,16,740.09 2,24,777.92 4,32,810.93 629.20 26.29 1.44 12,474.10 13,131.03 4,69,606.47 930.96 36.60 1.63 13,695.89 14,665.09 4,31,405.17 637.31 36.31 1.65 16,494.03 17,169.30 4,49,980.22

15. Financials Balance sheet(2/2) LIABILITIES AND EQUITY LIABILITIES Financial Liabilities Derivative Financial Instruments 866.23 441.22 566.93 Payables - - - - Trade payables - - - (i) Total outstanding dues of micro enterprises and small enterprises - - - (ii) Total outstanding dues of creditors other than micro enterprises and small enterprises - Other payables - - - - - - (i) Total outstanding dues of micro enterprises and small enterprises 0.19 0.20 1.00 (ii) Total outstanding dues of creditors other than micro enterprises and small enterprises Debt Securities 75.77 26.23 23.57 2,07,702.52 1,92,799.91 1,94,174.95 Borrowings (Other Than Debt Securities) 1,95,508.84 1,76,301.84 1,94,241.67 Other Financial Liabilities 21,220.92 22,200.00 19,448.55 Total Financial Liabilities 4,25,374.47 3,91,769.40 4,08,456.67 Non-Financial Liabilities Current Tax Liabilities (Net) Provisions 44.94 29.08 53.57 Deferred Tax Liabilities (Net) - - - Other Non-Financial Liabilities 44.92 102.02 473.64 Total Non-Financial Liabilities 89.86 131.10 527.21 Total Liabilities 4,25,464.33 3,91,900.50 4,08,983.88 Equity Equity Share Capital 13,068.51 13,068.51 13,068.51 Other Equity 31,073.64 26,436.17 27,927.83 Total Equity 44,142.14 39,504.67 40,996.34 Total Liabilities And Equity 4,69,606.47 4,31,405.17 4,49,980.22 PRIVATE& CONFIDENTIAL 15