Presentation for IL&FS

Agenda : 

Agenda Indian Financial Market Overview Company Overview Business Strategy Highlights

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SENSEX – Hitting the all time high Surge in F&O Market Volumes Robust CM Market Growth Indian Capital & Financial Market Summary 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

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FII Investments Mutual Fund Industry Source: AMFI Indian Capital & Financial Market Summary FII Investments ($ bn) Total AUM ($ bn)

Agenda : 

Indian Financial Market Overview Company Overview Business Strategy Highlights Agenda

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IL&FS Investsmart 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. An Introduction

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Promoted by Infrastructure Leasing and Financial Services Ltd Shareholders of IL&FS 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: IL&FS Infrastructure Equity Fund, IL&FS Investment Trust –I, II, IV The Indian Innovation Award-2005: Awarded to IL&FS by President of India Promoter History - IL&FS

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E*TRADE 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 Strategic Partner

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Product Portfolio

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Client Category Products Retail Corporate Mass Affluent Retired Individuals HNI/MNI IIL uses the above Model to acquire and service clients Business Model Universal Broker

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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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IIL has a significant growing presence in the institutional capital markets in India Institutional Debt Broking Investment Banking Institutional Business IIL Institutional Equity Product Offering Institutional Business

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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 IPO’s executed for the year Product reach extended with successful completion of a few M&A transactions, GDR advisory mandates and Private Equity transactions Investment Banking Performance Parameters

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

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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, FII’s 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 Institutional Equity Performance Parameters

Management Team : 

Management Team

Agenda : 

Company Overview Business Strategy Highlights Indian Financial Market Overview Agenda

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STRATEGIES Capitalize on New Business Opportunities 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 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 Increase institutional relationship backed by enhanced research capabilities Harness mid-market segment witnessing robust growth Grow Institutional Brokerage and Merchant Banking Sustainable Growth Drivers OBJECTIVES 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 Business Strategy

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Several measures planned to sustain the growth engine Growth Plan 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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Accelerated expansion through mini branches and select franchisees planned Network Expansion 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

Agenda : 

Company Overview Business Strategy Highlights Indian Financial Market Overview Agenda

Highlights : 

Strong Risk Management and Experienced and stable Management Team Highlights Highlights Robust Capital Market Outlook Established Presence - Attractive Play on the Indian Securities Market Strategic Investors With Access to Resources, Markets and Investors Full service Investment Bank with strong retail focus Strong Brand, Credibility and Innovative Product Offerings Diversified Revenue Stream