Agenda

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Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
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Indian Capital Financial Market Summary
SENSEX Hitting the all time high
Just to sum it up, India has had a dream year as
far as capital markets are concerned, and of
course we believe, the best is yet to come !!!

• Rising Markets Driven by
• Continued Surge in FII flows
• Increased primary mobilisation by Mutual Funds
• Increased retail participation
• Primary market issuances continue to attract
  heavy flows

Surge in FO Market Volumes
Robust CM Market Growth
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Indian Capital Financial Market Summary
FII Investments
FII Investments ( bn)
Mutual Fund Industry
Total AUM ( bn)
Source AMFI
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Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
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ILFS Investsmart
An Introduction

• One of the leading financial services companies
  in India
• Focused on retail broking (including margin
  financing), distribution of financial products
  and IPO financing
• Significant growing presence in Merchant Banking,
  Institutional Brokerage Businesses
• Pan India presence with a network of 259 outlets
  (including business associates) spread across 124
  major cities in India
• Total Income in FY 06 of Rs. 2170 mn. and net
  profit of Rs. 691 mn.

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Promoter History - ILFS

• Promoted by Infrastructure Leasing and Financial
  Services Ltd
• Shareholders of ILFS include SBI, ORIX-Japan,
  IFC-Washington, Credit Commercial de France,
  Indivest Pte Ltd(an Affiliate of Govt. of
  Singapore)
• Business operations of the promoter
• Infrastructure and Development Services Sectors
  such as Surface Transport and Transportation
  Systems,Water Supply, Hydro Power, Special
  Economic Zone, Port and Environment Social
  Management Group.
• Investment Banking Strategy, Asset Financing,
  Corporate Advisory, Capital Markets, Project
  Financing
• Made contributions to the following trusts ILFS
  Infrastructure Equity Fund, ILFS Investment
  Trust I, II, IV
• The Indian Innovation Award-2005 Awarded to
  ILFS by President of India

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Strategic Partner

• ETRADE
• Pioneer in the field of Internet Broking
• Global Leader
• Covers 3.5 million customers and 2.7 million
  households worldwide
• Presence in over 12 countries
• Superior Technology Platform

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Product Portfolio
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Business Model Universal Broker
Products
Client Category
HNI/MNI
Mass Affluent Retired Individuals
Corporate
Retail
IIL uses the above Model to acquire and service
clients
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Our Retail
Offerings
ü     Full Service offering across asset class
A Complete suite of products, offering wholesome
investment Solutions
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Achievements
Chosen as The Best Performing National
Financial Advisor Retail Segment at the CNBC
TV 18 National Financial Advisor Award 2006
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Product Offering Institutional Business
Investment Banking
IIL
Institutional Debt Broking
Institutional Equity
Institutional Business
IIL has a significant growing presence in the
institutional capital markets in India
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Investment Banking Performance Parameters

• Raised over Rs 14 bn from capital market through
  IPOs and follow-on offerings
• Mobilised around 1 mn IPO applications
• Acted as Advisors to 9 ESOP mandates
• Executed transactions across a spectrum of
  industries including Logistics, Auto Ancillary,
  Construction, Food Processing, Media, Software,
  Paper, Textiles, Steel, Sugars and Shipping to
  name a few.
• Ranked 5th in the league of Investment Bankers in
  No. of Book Built IPOs executed for the year
• Product reach extended with successful completion
  of a few MA transactions, GDR advisory mandates
  and Private Equity transactions

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Investment Banking
Execution Capabilities
Initial public Offerings
ESOP Certifications
Buybacks
Management of
Rights Issues
Private Equity Syndications
Advisory Assignments
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Institutional Equity
Performance Parameters

• Improved Performance Recorded a total income of
  Rs 139.28 mn in the current financial year
  compared to Rs 85.51 mn in 2004-05, a growth of
  63
• Empanelments with more than 100 institutions
  including banks, mutual funds, FIIs and
  corporate treasuries. 32 new empanelments, strong
  traction seen
• 4 member sales team and 7 member sales trader
  team to cater to institutional clients with one
  dedicated team member for US, UK and South East
  Asia Market
• Local office at Singapore
• Set-up derivatives desk for Institutional Clients
• Research team of 15 with a coverage of about 150
  stocks

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Management Team
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Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
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Business Strategy
STRATEGIES
OBJECTIVES

• Grow branch and franchisee network across India
• Expand into smaller cities with significant
  untapped potential
• Establish alliance with banks to increase market
  presence
• Launch and grow on-line trading capabilities
• Grow existing product lines like wealth
  management securities related financing

Grow Retail Business

• Expand into related financial services such as
  commodities broking and financing services and
  insurance brokerage
• Established a subsidiary with membership of NCDEX
  MCX
• Obtained a brokerage license to distribute
  insurance products of third party insurers

Capitalize on New Business Opportunities
Sustainable Growth Drivers

• Increase institutional relationship backed by
  enhanced research capabilities
• Harness mid-market segment witnessing robust
  growth

Grow Institutional Brokerage and Merchant Banking

• Plan to establish offices in key overseas
  markets, such as Singapore, Hong Kong, Dubai,
  London and New York
• Target growth opportunities for institutional
  brokering, private equity, syndication and NRI
  wealth management

Targeted Presence in Key Overseas Markets
Capitalize on acquisition opportunities in Indian
Markets
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Growth Plan
Several measures planned to sustain the growth
engine

• Complete business restructuring
• Increase Margin Portfolio book to Rs. 7.5 bn
• Accelerate branch expansion through setup of mini
  branches
• Reach an AUM of Rs. 20 bn in MF assets
• Scout for acquisitions
• Strong focus on building new businesses
  commodities, online trading
• Launch international operations in Singapore.
  Complete Dubai approvals
• Improve internal efficiencies performance
  monitoring, operations support, development of
  integrated middle office trading system
• Consolidate in the niche position in mid market
  corporate segment and graduate to large sized
  deals
• Exploit cross selling opportunities
• Deepen the focus on research and corporate
  relationships to grow institutional business

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Network Expansion
Accelerated expansion through mini branches and
select franchisees planned

• Rapid branch expansion on a smaller format (mini
  branches) planned in Mumbai, Delhi and Tier II
  cities
• Existing franchisee relationships to be
  developed, growth from new franchisees to be
  selective

Current Additional
Proposed Total Branches 55 90
145 Franchisees 157 70 227
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Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
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Highlights
Robust Capital Market Outlook
Established Presence - Attractive Play on the
Indian Securities Market
Full service Investment Bank with strong retail
focus
Highlights
Diversified Revenue Stream
Strong Brand, Credibility and Innovative Product
Offerings
Strategic Investors With Access to Resources,
Markets and Investors
Strong Risk Management and Experienced and stable
Management Team