#1E5 smc Moneywise. Be wise. SMC Global Securities Ltd. INVESTOR PRESENTATION MARCH 2022#2SMC at a Glance Branches Across India 95+ Including 1 in Dubai III ::: smc Moneywise. Be wise. Cities Covered 460+ Unique Clients 2,000,000+ Employees 3,200+ Sub-brokers / Authorised Persons Network of Financial Distributors 2,680+ 13,640+ 000 Do 8 Client Demat A/Cs 754,000+ Clearing & Settlement trading members 300+ Cumulative AUM/AUA under Mutual Funds/PMS INR 31 Bn+ Running SIPS 63,700+ Insurance Policies sold 580,000+ NBFC AUM INR 5,400 Mn + Ratings: Short Term- CARE A1+ & ICRA A1+ Long Term- ICRA A (STABLE) Consolidated Net worth INR 8,868 Mn *All numbers as of 9M-FY22 Investor Presentation ₹ Insurance Premium INR 15,000 Mn+ 5 Year Revenue CAGR 17.98% M 5 Year PAT CAGR 23.64% T Net D/E 0.53x 2#3SMC Group Overview smc Moneywise. Be wise. Consolidated Revenue (INR Mn) & EBITDA (%) 21.04% 8,929 22.72% 19.22% 7,785 7,527 20.93% 7,824 15.24% SMC Global Securities Ltd was established in 1994 by founders Mr. Subhash C. Aggarwal and Mr. Mahesh C. Gupta. Over the years, the company has grown into a diversified financial services company offering brokerage services, investment banking, wealth management, distribution of financial products, financing, insurance broking, clearing & depository services, fixed income securities, financial advisory services to corporates, institutions, high net worth individuals and other retail clients. The company has launched various innovative digital technology-enabled capabilities and best-in-class products and services. Through a strong network of approx. 2,680 Sub Brokers and Authorized Persons the company's footprint spreads over 460 cities across India. The company is governed by strong board including 6 independent directors and is run by a highly qualified and experienced management team. SMC has had a consistent growth track record and is well placed to garner a piece of the ever-growing capital markets in India. The company's vision is to be a global organization having a dominant position in financial & investment services through customer centric approach. 6,439 FY18 Investor Presentation FY19 FY20 FY21 9M-FY22 9M-FY22 Revenue Pie (%) 9% 23% 68% ■Broking, Distribution & Trading Insurance NBFC 3#4Business Structure Insurance Broking SMC Global Securities Ltd. $$ Broking, Distribution & Trading Life Insurance General Insurance $ Financing ₹ smc Moneywise. Be wise. Equity, Commodity, Currency & Institutional Broking Discount Broking - SME Loan Against Property (LAP) SME-Working Capital Term Loan (WCTL) Clearing Services Financial Products Distribution $ Proprietary Trading Fixed Income % ₹ ₹₹₹ Consumer Durable Loans B Capital Market Funding (CMF) Onward Lending Asset Finance Wealth Management Portfolio Management Real Estate/Mortgage Direct Assignment Investment Banking Advisory Investor Presentation 4#5Board of Directors Mr. Subhash C. Aggarwal Chairman & Managing Director, SMC Group He is the promoter and co-founder of SMC Group and an active contributor to the good governance. He is a fellow member of the Institute of Chartered Accountants of India (ICAI). Mr. Ajay Garg Director & CEO - SMC Global Securities Ltd. MD-SMC Global IFSC Pvt. Ltd. Director - SMC Insurance Brokers Pvt. Ltd., Moneywise Financial Services Pvt. Ltd. He is a Fellow Member of ICAI. With a wide and rich experience of over 23 years in Securities market, he heads the core businesses of Broking & Clearing services at SMC. Mr. Himanshu Gupta Director & CEO-Moneywise Financial Services Private Ltd. Director-SMC Global Securities Ltd., Director-SMC Comtrade Ltd. He is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) having a rich experience of around 11 years in Financing & Securities market along with a strong hold into the intricacies of the capital market. Mr. Kundan M. Agarwal Independent & Non-executive Director He serves as Independent and Non-Executive Director of SMC Global. He is a fellow member of Institute of Chartered Accountants of India (ICAI) and has experience and professional expertise of more than four decades in financial services industry. Mr. Mahesh C. Gupta smc Moneywise. Be wise. Vice Chairman & Managing Director, SMC Group, Director-SMC Insurance Brokers Pvt. Ltd. He is the promoter and co-founder of SMC Group and has been associated with the Company as the backbone since its inception which makes him a pivotal pillar of SMC. He is a fellow member of the Institute of Chartered Accountants of India (ICAI). Mr. Anurag Bansal Whole Time Director-SMC Global Securities Ltd. Director-SMC Capitals Ltd. He is a rank holder and fellow member of the Institute of Chartered Accountants of India (ICAI) with a wide and rich experience of over 23 years in financial markets. He is also a member of Institute of Cost Accountants of India (ICMAI). Ms. Shruti Aggarwal Non-executive Director She serves as a Non- Executive director for SMC Global Securities Ltd. and is currently leading the Corporate Finance function at SMC Investments & Advisors Ltd. She is an MBA from London Business School, a member of (ICAI) and has cleared all three levels of CFA from the CFA Institute, USA. Mr. Hari D. Khunteta Independent & Non-executive Director He is a fellow member of ICAI and is a commerce graduate from University of Rajasthan with experience of over 45 years in the field of financial management, Investor services, Corporate Governance & Resource mobilization from Domestic as well as International market. Investor Presentation Dr. Madhu Vij Independent & Non-executive Director She holds a Master degree in Commerce and a doctorate degree. She has an experience and exposure of over three decades as a Professor of Finance at the Faculty of Management Studies, University of Delhi. Mr. Chandra Wadhwa Independent & Non-executive Director He is the fellow member ICMAI & ICSI. He holds Bachelors of Law as well M. Com Degree from Delhi University and has exposure of over 39 Years in the field of Financial cost management accounting as well as in cost management auditing sector. Mr. Roop C. Jindal Independent & Non-executive Director He is a fellow member ICAI and has rich and varied exposure of 45 years in the field of Financial Reporting, Risk Management, Auditing and Taxation. Mr. Naveen ND Gupta Independent & Non-executive Director He has been a chartered accountant for more than 22 years and is widely known for his role in making the income disclosure Scheme, 2016 a success. He is the former president of ICAI and Director in various companies. 5#6Group Company Chairman/Directors & Key Management Personnel Dr. D. K. Aggarwal CMD-SMC Investments and Advisors Ltd. CMD-SMC Capitals Ltd. Chairman & Director-SMC Real Estate Advisors Private Ltd. Chairman & Director-SMC Comtrade Ltd. He is the Fellow Member of The Institute of Chartered Accountants of India (ICAI) with over two decades of experience in the securities market & financial services. Mr. Pranay Agarwal CEO Moneywise Finvest Ltd. Director - Moneywise Financial Services Private Ltd. He is a qualified Chartered Accountant from the Institute of Chartered Accountants of India (ICAI) and a commerce graduate from the University of Delhi. He is playing a leading role in StoxKart (Discount brokerage platform). Anshika Aggarwal Whole Time Director - SMC Investments and Advisors Ltd. She is a Chartered Accountant and a B. Com (Hons.) graduate from University of Delhi. She is heading SMC's Real Estate Advisory vertical and in a very short span of time, she has managed to establish the business as a dominant player in primary real estate advisory space comprising of both commercial and residential properties. Ms. Reema Garg Chief Human Resource Officer, Director-SMC Investments and Advisors Ltd. Director-Moneywise Finvest Ltd. She holds B.Sc. (Computer Science) from University of Delhi and Masters in Computer Applications (MCA) and pursuing PHD in HR. Ms. Nidhi Bansal Whole Time Director - SMC Real Estate Advisors Private Ltd. Director - SMC Comtrade Ltd. She is a post graduate in commerce and a fellow member of Institute of Chartered Accountants of India (ICAI). Mr. Vinod Kumar Jamar President & Group CFO He is responsible for managing financial reporting, audit, compliance of tax laws (direct and indirect), planning and capital structure. He is also a fellow member of Institute of Chartered Accountants of India (ICAI). Investor Presentation Mr. Pravin K. Agarwal Whole-Time Director- SMC Insurance Brokers Pvt. Ltd. smc Moneywise. Be wise. He actively handles the development and operations of our insurance broking business. He is a man of alternative skills and solutions that has led to SMC's substantial expansion and diversification. He has more than a decade of pivotal work experience in Insurance and Financial Industry. Mr. Ayush Agarwal Director - SMC Real Estate Advisors Private Ltd. Director - Moneywise Finvest Ltd. CIO - SMC Private wealth He is an MBA (PGP-FMB) from SP Jain Institute of Management and Research, Mumbai, and a graduate from University of Delhi. He is the Chief Investment Officer of SMC Private wealth Vertical at SMC Global Securities Ltd. managing and handling portfolio management activities. Ms. Akanksha Gupta Whole Time Director - SMC Insurance Brokers Pvt. Ltd. She is a member of the ICAI Institute and is also a Chartered Financial Analyst (CFA). She is an experienced and confident lady who inspires everyone with her innovative ideas, conviction and new perspectives. Her ability to see the matters of the company and unfailingly rise to meet the challenges boosts the effectiveness of the group. Mr. Rajendra P Mahipal Independent & Non-executive Director - SMC Insurance Brokers Pvt. Ltd. He holds M. Com degree from Rajasthan University and is also a fellow member of the Institute of Chartered Accountants of India. He is a promoter and director of Pink city Electronics Pvt Ltd and has over 41 years of experience in import Export, Finance, Administration and Capital Market. Ms. Shweta Aggarwal Director SMC Capitals Ltd. She is a member of the ICAI and has also cleared all levels of Chartered Financial Analyst (CFA) Program from U.S.A. She is responsible for the formation of the business, and spearheads the growth plans and business strategy of the investment banking division. Mr. Suman Kumar E.V.P - Corporate Affairs & Company Secretary He leads the Corporate Affairs & legal matters of the SMC Group. He serves as the Executive Vice President (Corporate affairs) & Company Secretary of the SMC Group. He is fellow member of ICSI & a law graduate from University of Delhi. 6#7Key Milestones smc Moneywise. Be wise. SMC Global took membership of NSE and started broking business Distribution of Financial Products, Research Services, Membership of DGCX in Dubai NRI Business Institutional Desk Received BSE membership as SAM Global Securities amalgamated into SMC Global Securities Real Estate Advisory Fixed Income Broking Mortgage and Loan Advisory Point of Sale Persons (POS) - Approved by IRDAI Listed on NSE and BSE, Launched SMC Gold Coins 1995 Investor Presentation 2003 2005 2006 2007 2008 2009 2010 2014 2016 2017 2019 Commodity Broking launched Insurance Broking Wealth Management Investment Banking Online Trading Currency Broking Financing Business Corporate Hedging Desk Trading cum clearing member of India INX & NSE- Discount Broking - IFSC, GIFT City, Gujarat StoxKart (NBFC) 2021 7#8Geographical Reach Investor Presentation Dubai Jammu Punjab o ° Amritsar Mandi A Jalandhar ■ Shimla ☐ SMC Branch Offices 95+ Branches in India including Dubai 460+ Cities covered across India 2,680+ Sub Brokers / Authorised Persons Ludhiana Chandigarh Bhathinda Haryana P Patiala Dehradun Panipat Delhi Gurgaon Rajashthan ■ Sambalpur A■ Meerut ДПОХО ANO Noida Lucknow Guwahati■ Sultanpur Kanpur Gorakhpur Patna Silguri Malda Ahmedabad Bhopal Dhanbad Vadodara Rajkot Surat ■• Indore Ranchi Jamshedpur A Kolkata ⚫ Ahmednagar Maharashtra o ⚫ Nashik Mumbai ★ по Aurangabad Pune ▲■⭑ Secunderabad Hydrabad • Nagpur . • Raipur ■ Bhilai Sambalpur ■ Howrah ■Bhubaneswar ■ Brahmanpur Visakhapatnam Vijaywada Bengaluru Coimbatore ⚫ Kochi • Chennai Agarlala Corporate Office Broking Insurance ▲ Real Estate ✰ Wealth Overseas Financing smc Moneywise. Be wise. 8#9Awards & Accolades smc Moneywise. Be wise. 2021 KRISHI Award for developing Retail Segment Participation NCDEX 2019 Business Excellence Award (Order of Merit) 2019 Broking House Non-Agricultural Commodities of The Year MCX METAL & ENERGY Trade with Trust 2019 Premier Depository Participant in Gold Category CDSL 2019 Fastest Growing MFI North in Best Star MF Online- BSE 3SE STAR MF SMART INVESTING 2018 "Regional Retail Member of the Year (North)" NSE -25- 2018 Best Fastest Growing Commercial NBFC NBFC100 2018 Best Financial Service Provider ASSOCHAM INDIA 2017 Best Online Trading Services Broker ASSOCHAM INDIA 2017 Best Broker with In-House Research In Bullion Industry ASSOCHAM INDIA 2017 Krishi Pragati Award, 2017 NCDEX National Commodity & Derivatives Exchange Ltd. 2017 Commodity Broker of the Year ASSOCHAM INDIA 2017 Best Performing Retail Broker of Northern Region ONSE 2016 Order of Merit- Achieving Market Leadership SKOCH BSE AWARD 2016 NBFC of the year (Northern region) ASSOCHAM INDIA 2015 Property Consultant of the Year - Residential ABP न्यूज़ 2015 Corporate Broker of the Year National ETNOW FRANCHISE INDIA 2015 Best Financial Service Provider ASSOCHAM INDIA 2015 Best Real Estate Broker of the year ETNOW FRANCHISE INDIA 2014 Best Commodity Broking House ASSOCHAM INDIA 2014 Best Merchant Banker Capital Restructuring services ASSOCHAM INDIA 2014 Best Market Analyst Award in Commodity Fundamentals 2013 Best Equity Broking House Derivative Segment 3SE D&B 2013 Fastest Growing Equity Broking House - Large Firm 3SE D&B Investor Presentation BUSINESS 9#10Key Strengths Investor Presentation • Over 25 Years of Management experience in industry • Well established and deeply penetrated national brand with strong reputation and good recall • Group has extensive corporate relationships smc Moneywise. Be wise. An ever-growing database of corporate and retail clients Innovative use of digital technology-enabled capabilities, best-in-class products and services Strong network of approx. 2,680 Authorized persons and Sub-brokers, with a footprint covering over 460 cities across India Wide range of financial products under one roof SMC has earned trust that cements "One Transaction Lifetime Relationship," the belief that centers on managing, growing and protecting the investment of our clients for generations 10 10#11600 S Broking, Distribution & Trading smc Moneywise. Be wise. 11 4#12Broking, Distribution & Trading Broking business comprises of brokerage in dealing in equities, commodities, currency derivatives and other securities on behalf of customers, clearing services across all major stock exchanges and depository services. Distribution business encompasses distributing third-party financial products like Mutual Funds, IPOs, FPOs, Corporate FD's and Bonds and various other capital market products. This segment also covers wealth and portfolio management services along with providing investment banking services and advisory in real estate and mortgage / loan advisory. The company also houses proprietary arbitrage trading through a new generation algorithmic trading/HFT. Procurement and placements of debt instruments like G-Secs for various corporate clients is carried out under the fixed income desk. SMC has banking tie ups with leading institutions like Punjab National Bank, Union Bank of India, Indian Overseas Bank, Karur Vysya Bank & United Bank of India as execution partners for broking services. Increasing Online Penetration Authorised Persons / Sub-Brokers smc Moneywise. Be wise. Segment Revenue* (INR Mn) 6,011 5,661 4,728 4,831 4,756 FY18 *includes other income FY19 FY20 FY21 9M-FY22 9M-FY22 Revenue Pie (%) 80% 77% 69% 50% 47% 2,682 2,541 2,574 2,373 2,230 33% 67% 50% 53% 31% 20% 23% Broking & Trading Others FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 ■ Online Offline Investor Presentation 12 22#13• • Broking Equity, Commodity & Currency Broking: • SMC is serving more than 699,000 unique clients under the broking segment. Equity segment under broking has been successful in generating a combined turnover of approx. INR 222 Tn* in 9M-FY22 as compared to a turnover of INR 146 Tn in FY21. Recorded our highest trading volume of INR 3.8 Tn* in commodity segment and INR 8.2 Tn* under currency segment for 9M-FY22. • Total approx. market share of 1.94% in equity, 5.35% in commodity and 4.54% in currency markets. Clearing Services: . • SMC is a leading name in clearing services whereby it provides clearing & Settlement services to over 300 trading members across multiple stock exchanges. Member of NSE, BSE, India INX, NSE IFSC Exchange at GIFT City, MCX, NCDEX, ICEX & MSEI in India and DGCX (Dubai Gold & Commodity Exchange) in UAE. • SMC is one of the few clearing service providers having a PAN - India reach. Broking Clients (in Thousands)** 699 625 567 527 488 FY18 FY19 FY20 FY21 9M-FY22 *Includes turnover from proprietary and clearing services from cash and derivative segments **Represents SMC Global Securities' clients only; exclusive of StoxKart clients. Investor Presentation Broking DP AUA (INR Bn) 248 167 179 154 502 smc Moneywise. Be wise. Average Daily Turnover in Broking (INR Bn) 642 536 320 372 1,587 FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 الله 13#14Discount Broking - StoxKart smc Moneywise. Be wise. • • SMC has successfully launched a Discount broking platform in 2019 under the brand name StoxKart. It's a first-of-its-kind in the broking industry where customers are charged only for profitable transactions. Optimal usage of existing infrastructure is being leveraged to great cost savings targeting industry competitive prices. StoxKart is one of the very few brokers to offer API based trading services which enables the clients to write their own software programs for professional trading. StoxKart has added more than 88,000 clients till December 2021, and this has the potential to show exponential levels of growth. (StoxKart clients are unique from traditional broking clients) Key Features: STOXKART! DISCOUNT BROKERAGE | POWERED BY Smc STOXKART PRO StoxKart Clients • - Big Saving in Brokerage Rs.15 flat on intraday trade. Brokerage per executed order regardless of the trade size or time and that too only on the profitable trades. • Free Delivery Trades - Zero brokerage on delivery trades. Advanced Charting Facility - Advanced and cutting-edge charting tools with 80+ technical indicators on real-time basis. 44,900 88,179 Advanced Trading Terminal - Seamless user-experience on mobile, browser & desktop trading platforms to help the customers trade on the move. 8,397 3,900 Quick Trigger Alert - Get quick trigger alerts for price movements, pending orders, executed orders etc. FY19 FY20 FY21 9M-FY22 • Real Time Support - A dedicated team of experienced professionals ready to offer any kind of assistance regarding customer queries Investor Presentation 14 114#15Digital Ecosystem for Broking Client Engagement Developing research reports in HTML5 (Mobile Responsive Format). Creating campaigns using Social Media, Investor websites like Moneycontrol.com, Web banners, etc with an objective of adding value during prospect's awareness. Quantitative Trading Desk(HFT) . Specialize in automated trading strategies across multiple asset classes through cutting edge in-house trading platform ACE Innovative Trading Tools SMC • Availability of next generation tools for trading such as SMC ACE, SMC Easy Invest, SMC Algotrader, SMC Autotrender, Algo and HFT Trading. Digital Presence various K • Active social media presence on platforms including Facebook, Instagram, Twitter, LinkedIn, Youtube and Quora. 0.54 Website Traffic (In Mn) 3.32 1.91 2.30 smc Moneywise. Be wise. "We are Online" . Zendesk - the messaging chatbot enables us to identify and segregate anonymous visitors into customers and prospective clients and to address their issue in realtime. Knowledge Sharing Conducted 90+ webinars with 250K+ attendees and having speakers from leading institutions viz. NSE, BSE, MCX, NCDEX, etc. ACE POWERED BY smc • Next generation advance mobile trading platform 'SMC ACE' Provides Robo Advisory to the clients smc algotrader Customized automated trading platform based on Algorithms. smc easytrade • Platform for online trading through website and Mobile App smc easyinvest Online App for investing in mutual funds, FDs and various other financial instruments Application Installations 89,575 41,378 6,755 146,432 • smc autotrender An In house automated software which is totally unique to the system. Our team of software professionals develop various technical and statistical strategies for trading. smc скус Online KYC platform, a complete paperless & FY19 FY20 FY21 9M-FY22 FY19 FY20 FY21 9M-FY22 hassle free process Investor Presentation STOXKART PRO Advance mobile trading app • • Single hand navigation to important functions Advanced Charting tools • Multiple analysts research • based recommendations smc easygoplus A B2B mobile back office 15#16Distribution SMC offers distribution services of financial products including IPO's, Mutual Funds, Company Fixed Deposits, Bonds, through its network of branches and channel partners across India. SMC also provides retail financing through NBFC division in IPO's, FPO's & Bonds. Pan-India network of 13,640+ independent financial distributors. SMC is ranked amongst top 20 syndicators in most of the Debt & Equity Issuances in retail segment. Distributing Mutual Fund schemes for all AMCs and has built a cumulative Asset under Management (AUM) of above INR 31 Bn+ with more than 63,700+ active SIPs for clients. Total Distributors 12,515 11,874 13,777 13,676 13,643 18,880 Gol Taxable Bonds Procurement (INR Mn) 4,890 1,830 18,110 10,305 Mutual Funds AUM (INR Bn) 28 29 smc Moneywise. Be wise. 30 31 25 25 FY18 FY19 FY20 FY21 9M-FY22 Corporate FD Procurement (INR Bn) 22 27 23 41 36 33 FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 Investor Presentation 16#17Proprietary Trading & Fixed Income smc Moneywise. Be wise. • High-Frequency Trading (HFT): HFT is a method of trading that uses powerful computer programs to transact a large number of orders in fractions of a second. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions. • We have an in-house team of software professionals, developing various technical and statistical strategies. Arbitrage/Algorithm Trading: • • Arbitrage entails fully hedged trading strategies like Cash to Future Arbitrage; NSE to BSE (Cash to Cash Arbitrage); Call Put Parity Arbitrage (Conversion reversal), Box Arbitrage, Special Situation Arbitrage & Future to Future Arbitrage. SMC is a major player in arbitrage business with experience of over 23 years having skilled team of more than 285 arbitragers. This proprietary trading is also used as a Treasury Management Tool. Fixed Income: • The fixed income desk executes the procurement and placements of a wide range of debt instruments. . Served more than 1,100 institutional and HNI clients in FY21. • SMC's total turnover for FY21 stood at INR 32 Bn, in addition to INR 12.26 Bn in the Wholesale Debt Market. At this desk, SMC deals with Government securities (G-Sec), State Development Loans (SDLs), Debentures (PSUs, Corporates, NBFCs, Banks), Tax-Free Bonds, Money Market Instruments, Certificate of Deposits, Commercial Papers, Treasury Bills, Perpetual Bonds, Other Debt Market Instruments. Serving a broadly diversified client profile consisting of State Electricity Boards, Private & PSU Corporate PFs, Gratuity Trusts, Schools / Universities / Education Institutes, Charitable Trusts, Banks / Mutual Funds / Insurance Companies, Debt Brokers, Corporate Treasuries, HNIs, etc. Investor Presentation 17 12#18Advisory smc Moneywise. Be wise. Wealth AUM/AUA (INR Mn) smc Private Wealth Building Wealth, Enriching Lives... smc capitals Investment Banking Wealth Management: • Total Clients served under wealth management clock over 10,320 with managed AUM/AUA of INR 5,211 Mn. We have our direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and Pune. Portfolio Management: • Under our PMS desk, we focus on buying fundamentally sustainable growing businesses and outperform the benchmark indices by investing in equity and equity related instruments including mutual funds. Investment Banking: • SMC Capitals Ltd. is a SEBI registered Category | Merchant Banker, having executed over 50 high profile deals including IPOs, debt issuances and other equity-based transactions. Real Estate/Mortgage Advisory: 5,060 5,211 4,400 3,470 3,080 FY18 FY19 FY20 FY21 9M-FY22 Marquee Investment Banking Deals smc Realty Wise. Real Advice. Real Estate Advisors Investor Presentation • • Fully Integrated real-estate solution provider for end-users, investors & developers. Supported by 1,100+ sub-brokers. 3SE BSE Limited IPO-BRLM Coromandel Coromandel International Limited M&A Advisory RL VRL LOGISTICS LIMITED VRL Logistics Private Equity Advisory muthoot FINCORA Muthoot Fincorp Limited Debt Public Issue - Lead Manager • 4,400+ transactions done since 2017 valued at INR 21.51 Bn. Tie-ups with leading developers like Godrej, Lodha, Shapoorji, TATA, Shobha, Hiranandani, Adani, etc. - Mortgage Advisory Tie-ups with leading banks for debt syndication of secured / unsecured loans for retail and corporate borrowers. L&T Infrastructure Finance Limited Long Term Infrastructure Bonds Co Lead Manager SHRIRAM Shriram Transport Finance Company Limited Debt Public Issue - Lead Manager Kosamattam Finance Kosamattam Finance Limited Debt Public Issue -Lead Manager IDFC IDFC Limited Long Term Infrastructure Bonds Co Lead Manager 18#19· Broking Industry Outlook smc Moneywise. Be wise. Equity broking industry revenue to log 11-12% CAGR in next five fiscals driven by a growth of 23-25% in turnover volumes as per ICRA. Rising Penetration of Demat Accounts in India 4.10% · • High investor awareness, increased retail interest across market segments, easier and faster means to access the markets and continuing FII inflows will continue to boost these numbers. Value added service offering becomes a key differentiator amid rising competitive pressure and decreasing interest rates. Steady increase in trading activity can be seen with the trading volumes peaking every quarter. Significant increase in retail participation is being witnessed in the industry where, the total number of Dematerialized accounts increased to 6.90 Crores in FY21 While growth momentum is expected to continue, the traction witnessed in FY2021 is expected to stabilize in the coming years. Broking income clocked around INR 275-285 Bn in FY21, registering 30-35% growth from INR 210 Bn in FY20. The industry growth rate, however, is expected to moderate in the following fiscal with gradual moderation in transaction volumes. ICRA estimates the brokerage industry to clock a record broking income of INR 295-305 Bn at a growth rate of 7-8% from the previous financial year, in FY22. Growing retail share along with increasing interest and other fee income is expected to support profitability. Investor Presentation 3.10% 2.70% 2.40% 2.00% 2.10% 1.70% 1.70% 1.80% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Industry ADTO - Equity Retail (INR Tn) 4.8 3.3 1.7 1.1 1.1 0.6 0.7 0.2 8.4 6.8 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 H1-FY21 19 19#20Insurance Broking smc Moneywise. Be wise. 20 20#21Insurance Broking smc insurance IRDA REGISTERED INSURANCE BROKER smc Moneywise. Be wise. Segment Revenue* (INR Mn.) 2,456 2,207 1,944 1,775 SMC Insurance Brokers Pvt. Ltd. which is a Direct Insurance Broker registered with IRDAI (Insurance Regulatory and Development Authority of India) provides a complete array of services in Life Insurance and General Insurance Category including consulting, risk analysis, policy serving and claim settlement assistance. SMC is one of the largest players in India in the General Insurance Retail Broking as well as for Life Insurance in India. It provides these services through 4 branches across the country with more than 430 employees, 11,872 Point of Sales (POSS) and 270+ Motor insurance Service Providers (MISPs) servicing a retail customer base of more than 700,000 in FY21. The company operates independently of insurance companies, representing clients and rendering impartial advice to protect client's interests. Customers taking insurance through SMC benefit by lower premium and/or better quality of insurance cover, expert consultancy, practical pre-sale advice and efficient post-sale services. 1,054 FY18 FY20 FY19 FY21 9M-FY22 *Revenue recognition changed from net to gross basis from FY18. No. of Policies (In Thousands) 739 693 676 654 580 Investor Presentation FY18 FY19 FY20 FY21 9M-FY22 21 21#22Insurance Broking General Insurance (GI) Non-Life Company. General Insurance contributes around 95% of the total revenues (FY21) of the Within this segment, sales primarily happen through MISP (Motor Insurance Service Provider), POS (Point of Sales person), direct sales channel-foot on the street model. . SMC caters to a 2% market share in the Motor Insurance segment. The General Insurance business segment has following sub verticals under which policies are sold: MISP Motor Insurance Service Provider GI Retail: Personal Line Products offered i.e. Motor, Health, Travel, Home Insurance etc. GI Corporate: Marine insurance, Fire insurance etc. to corporate, institutional and government bodies. Life Insurance (LI) This segment contributed around 5% of the total revenue (FY21) in insurance broking. We have a tie up with all the Life Insurance Companies for procuring business with an overall range of 40 - 45 products to offer to our clients Our offerings include varied products viz Term Plans, Market Linked Investment Plans, Endowment plans promising guaranteed returns for varied client requirements. Market share as per GI Council of India as on Mar 2020 Investor Presentation smc Moneywise. Be wise. Insurance Gross Premium (INR Mn) 17,364 15,826 15,035 13,629 13,716 FY18 FY19 FY20 FY21 9M-FY22 Revenue Pie % 3% 97% I General Insurance Life Insurance 22 22#23Insurance Broking - Scalable Business Model Point Of Sales (POS) smc Moneywise. Be wise. Deep and wide national coverage Distribution . Strong presence in Tier-1 and Tier-2 cities • Leveraging SMC Global's (Parent) franchisee network 11,872 11,100 8,000 • Best in industry quality processes • 100% verification of all leads to ensure no mis-selling 5,756 Processes . Emphasis on employee training and development 3,281 • Complying to data confidentiality, regulatory compliance and IRDA guidelines · Deployed 'Aspect Contact Center Solutions Software' FY18 FY19 FY20 FY21 9M-FY22 Technology Platform • Software provides tools for efficiency improvement & effective monitoring of employees and processes POS Model • 100% calls are recorded for future reference and training purposes • Point of Sale, an individual authorized by IRDA for sales/ servicing of the Insurance policies on behalf of the Company • Post online training & certification the individual sources pre underwritten Insurance policies (Motor, Travel, Personal accident & home insurance). Motor Insurance Service Providers (MISP) 265 350 370 271 • MISP guidelines effective Nov 2017 have paved way for large business opportunities through OEM dealers • First broker in OEM insurance program to successfully launch entire insurance program compliant with MISP guidelines MISP model • First online portal for MISP enrollment – training, examination and registration Investor Presentation • First insurer evaluation for Automotive Insurance Program through online RFP by insurers & dealer rating of insurers FY19 FY20 FY21 9M-FY22 23 23#24Insurance Industry Outlook • • • . • The insurance industry in India is expected to reach USD 280 Bn. Life insurance industry in the country is expected to grow 12-15% annually over the next three to five years. Insurance reach is still low in India. Overall insurance penetration (premiums as % of GDP) in India was 3.76% in FY20, providing a huge underserved market. India's insurance penetration was pegged at 3.76% in FY20, with life insurance penetration at 2.82% and non-life insurance penetration at 0.94%. In terms of insurance density, India's overall density stood at USD 78 Bn in FY20. Life insurance in India has a huge growth potential. By 2020, it was expected to account for 35% of India's total savings. Gross premium collected by life insurance companies in India increased from INR 2.56 Tn (USD 39.7 Bn) in FY12 to INR 7.31 Tn (USD 94.7 Bn) in FY20. In FY21, premium from new business of life insurance companies in India stood at USD 32.1 Bn. Motor insurance accounted for 32.59% of the non-life insurance premiums earned, followed by health insurance at 28.9%. The market share of private sector companies in the non-life insurance market rose from 13.12% in FY03 to 55.8% in FY21. Higher personal disposable incomes would result in higher household savings that will be channeled into different financial savings instruments like insurance and pension policies. Investor Presentation Source: IBEF Insurance Premium as a % of GDP smc Moneywise. Be wise. 0.70% 0.80% 0.90% 1.00% 0.90% 2.70% 2.70% 2.80% 2.70% 2.80% FY16 FY17 FY18 FY19 FY20 Life ■Non-Life Insurance Premiums Per Capita (In USD) 19 19 18 13.2 11.5 55 55 58 55 46.5 43.2 FY16 FY17 FY18 FY19 FY20 Life ■Non-Life 24 24#25MONTHLY BUDGET Financing (NBFC) 86330 811.000 RESULTS smc Moneywise. Be wise. 25 25#269M-FY22 NBFC Business in numbers Satisfied Customers 240+ Channel Partners ~67,377+ 7 Branches Employees 181 年 Collection Efficiency 100%+ Net Worth INR 3,524 Mn Hv smc Moneywise. Be wise. Number of Lenders 13 Loan AUM INR 5,414 Mn Cumulative Loans Disbursed INR 14 Bn+ NNPA % 1.61% ROTA % 2.70% Revenue INR 705 Mn Total Borrowings/Leverage Ratio INR 2,449 Mn/ 0.7x Secured Loans % 53% до OPEX-AUM 3.90% Investor Presentation Cost of Borrowing % / NIM % 9.11% / 10.80% Credit Cost-ANR / PCR 2.10%/77%#27smc Moneywise. Be wise. Segment Revenue (INR Mn) NBFC-Systemically Important (SI) smc finance In the year 2008, SMC started providing financing services through its wholly owned subsidiary, Moneywise Financial Services Pvt. Ltd. (SMC Finance). SMC Finance offers a wide bouquet of loan products i.e. SME financing, loan against property, receivable financing, medical equipment finance, etc. to meet the growing credit requirement. The NBFC has a client base of 67,000+ customers across India and is recognized as Systemically Important non-deposit accepting NBFC. The NBFC, is currently focused on capital preservation, given its healthy capital adequacy, strong liquidity position, diversified portfolio mix. Recently, the NBFC has also received a corporate agent (Composite) License from IRDA. 772 988 878 821 705 FY18 FY19 FY20 FY21 9M-FY22 9M-FY22 Lending Portfolio 8% 10% 22% 3% 36% 3% The NBFC is opening up in newer geographies like Rajasthan and Punjab while also having good client base in metro cities like Mumbai & Delhi. LAP WCTL Asset Onward Finance Lending CMF Retail Consumer DAS Durables Total AUM (INR Mn) 1,166 1,886 522 1,008 183 497 152 5,414 18% Tenure (Months) 120 36 60 24 3 18 Avg. Ticket Size (INR Mn) 20.00 1.40 12.00 20.00 1.00 1 0.01 Return on Investment 13.5% 17.3% 13.0% 14.5% 18.0% No. of Clients 58 1,415 40 50 199 16.0% 44,633 18.0% 15.5% 20,982 67,377 ■SME-Loan Against Property (LAP) Consumer Durable Loans Onward Lending Direct Assignment *All numbers as of 9M-FY22 Investor Presentation ■SME-Working Capital Term Loan (WCTL) Capial Market Funding (CMF) SME-Asset Finance 27 27#28• • Borrowing Mix Diversification Increasing diversity in borrowing profile with borrowing from banks & financial institutions Continued plan to raise additional funds through diversified sources and through varied instruments Cumulative Asset liability mismatch/surplus of INR 481.9 Mn in 30 days bucket which is well under control as per RBI guidelines. Diversified Borrowing Mix 44% 41% 49% 42% 58% 13% 11% 29% 36% 1% Unutilized borrowing amounting up to INR 1194 Mn available for new lending opportunities. 40% 45% 41% 28% 23% Lending Institutions kotak Kotak Mahindra Bank State Bank of India HDFC BANK Bank of India Relationship beyond banking FY18 FY19 FY20 FY21 9M-FY22 NCD Corporate Borrowing ■ NBFC & Fl Bank Borrowing program supported by superior ratings smc Moneywise. Be wise. Rating Type Rating Rating Agency b RBL BANK Punjab National Bank DCB BANK Bank of Ma Long term bank loans CARE A(stable) CARE FEDERAL BANK sidbi केनरा बैंक Canara Bank Long term bank loans ICRA A-(stable) ICRA YOUR PERFECT BANKING PARTNER Nabkisan Finance Ltd. NCD CARE A(stable) CARE Investor Presentation IDBI BANK 28#299M-FY22 Key Business Trends - NBFC 9M-FY22 Lending Portfolio 8% 10% 22% 18% 3% 36% 3% ■SME-Loan Against Property (LAP) ■SME-Working Capital Term Loan (WCTL) ■Consumer Durable Loans Onward Lending ■Capial Market Funding (CMF) SME-Asset Finance Direct Assignment GNPA % & NNPA % 6.17% Disbursements (INR Mn) 3,260 smc Moneywise. Be wise. NII (INR Mn) & NIM (%) 2,850 2,730 11.80% 2,770 2,770 11.50% 11.10% 623 530 10.30% H 618 10.80% 607 447 FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 4.09% 4.21% 3.66% 42% 43% 2.55% 2.55% 1.75% 1.44% 1.61% CRAR % PAT (INR Mn) 311 297 64% 61% 58% 185 164 150 0.37% FY18 FY19 FY20 GNPA% FY21 NNPA % 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 (ECL provision of INR 126.7 Mn as of Q3 FY22 as per IND AS) Investor Presentation 29 29#30NBFC Industry Outlook MSME Credit Market - India • . • • Non-Banking Finance Companies (NBFCs) have played an important role in the Indian financial system by complementing and competing with banks, and by bringing in efficiency and diversity into financial intermediation. NBFCs have evolved considerably in terms of operations, heterogeneity, asset quality and profitability, and regulatory architecture. Going forward, the growing systemic importance and interconnectedness of this sector calls for regulatory vigil. The regulatory approach of the Reserve Bank has adapted to the increase in complexity of the entities within the NBFC sector as well as the growing significance of NBFCs within the financial sector. The number of registered MSMEs has grown to 63 Mn units in 2021 at a growth rate of 18.5% from the previous year with the launch of Udyog Aadhaar Memorandum policy promoting business activities in the country. India has a large unmet SME credit as less than 20% of these SMEs have access to credit facilities which brings the potential addressable market of INR 19.4 Tn under this credit gap. Availability of good credit borrowers supported with rising income levels as demand is being fuelled by economic growth. Government polices like "Atmanirbhar Bharat", and "Make in India" promote the facilitating of credit to MSME organizations for which the market is growing at a rate of 12% year on year. Market Size: INR 70+ Tn Investor Presentation Sources: SIDBI, IBEF 25% 47% smc Moneywise. Be wise. 28% Credit Gap: INR 19+ Tn Banks & NBFC Credit Gap Informal Channels 30 30#31252 AC B 10000 110002 Monthly Budget-Detail Category Macurricular activities Children School Succles Moves Entertainment Children Children Financial Overview Music CDs downloads Events 333 Entertainment Entertainment Fo Food Gifts and Charity Gifts and Char Housing Housing or Rent Housing Insurance Insurance Loans 31 smc Moneywise. Be wise.#32Historical Consolidated Income Statement smc Moneywise. Be wise. Particulars (INR Mn) FY19 FY20 FY21 9M-FY22 Operational Income 7,528 7,785 8,929 7,824 Total Expenses 5,944 6,599 7,060 6,046 EBITDA 1,584 1,186 1,869 1,778 EBITDA Margins (%) 21.04% 15.23% 20.93% 22.72% Other Income 67 56 86 288 Depreciation 113 192 180 145 Interest 629 599 423 415 Profit (Loss) from Joint Venture 7 PBT 909 451 1,359 1,506 Tax 161 212 358 334 Profit After tax 748 239 1,001 1,172 PAT Margins (%) 9.94% 3.07% 11.21% 14.98% Other Comprehensive Income 21 (63) 76 197 Total Comprehensive Income 769 176 1,077 1,369 Basic & Diluted EPS (INR) 6.61 2.11 8.85 10.36 Investor Presentation 32 32#33Historical Consolidated Balance Sheet smc Moneywise. Be wise. Particulars (INR Mn) ASSETS Non-Financial Assets FY20 FY21 H1-FY22 Particulars (INR Mn) FY20 FY21 H1-FY22 EQUITY AND LIABILITIES Equity 132 51 Inventories Share Capital 226 226 226 Current tax assets (net) 305 224 297 Other Equity 6,588 7,501 8,427 Deferred tax assets (net) 399 317 230 Non-controlling interest 17 16 15 Assets held for sale 24 24 44 Total Equity 6,831 7,743 8,668 Property, plant and equipment 290 268 270 Non-Financial Liabilities Capital work-in-progress 5 Current tax liabilities (net) 5 15 45 Right to use - Lease 389 350 344 Provisions 266 234 246 Other intangible assets 16 17 16 Other non-financial liabilities 116 170 165 8 1 Intangible work-in-progress 5 Sub-Total Non-Financial Liabilities 387 419 456 Other non-financial assets 178 242 290 Sub-Total Non-Financial Assets 1,614 1,575 1,547 Current Liabilities Financial Assets Trade Payables 4,350 4,291 6,491 Cash and cash equivalents (incl. Other Bank 6,548 10,920 12,747 Lease Liabilities 360 338 340 balance) Receivables 2,783 2,938 3,696 Debt Securities 46 783 788 Loans 4,995 5,721 5,538 Borrowings 1,801 3,801 1,974 Investments 857 1,171 1,945 Other Financial Liabilities 4,992 6,499 8,404 Other financial assets 1,970 1,549 1,648 Sub-Total Financial Liabilities 11,549 15,712 17,997 Sub-Total Financial Assets 17,153 22,299 25,574 Sub-Total Liabilities 11,936 16,131 18,453 TOTAL ASSETS 18,767 23,874 27,121 TOTAL EQUITY AND LIABILITIES 18,767 23,874 27,121 Investor Presentation 33#34Historical Standalone Income Statement smc Moneywise. Be wise. Particulars (INR Mn) FY19 FY20 FY21 9M-FY22 Operational Income 4,248 4,219 4,930 4,637 Total Expenses 3,627 3,588 3,759 3,323 EBITDA 621 631 1,171 1,314 EBITDA Margins (%) 14.62% 14.96% 23.75% 28.34% Other Income 185 310 215 335 Depreciation 91 139 118 104 Interest 382 427 280 266 Profit (Loss) from Joint Venture PBT 333 375 988 1,279 Tax 3 78 287 272 Profit After tax 330 297 701 1,007 PAT Margins (%) 7.77% 7.04% 14.22% 21.72% Other Comprehensive Income 8 (61) 74 160 Total Comprehensive Income 338 236 775 1,167 Basic & Diluted EPS (INR) 2.92 2.63 6.20 8.90 Investor Presentation 34 =#35Historical Standalone Balance Sheet smc Moneywise. Be wise. Particulars (INR Mn) FY20 FY21 H1-FY22 Particulars (INR Mn) FY20 FY21 H1-FY22 ASSETS Non-Financial Assets EQUITY AND LIABILITIES Equity Inventories 132 34 Share Capital Current tax assets (net) 161 163 161 Other Equity Deferred tax assets (net) 184 80 37 Total Equity 226 226 226 5,877 6,488 7,296 6,103 6,714 7,522 Property, plant and equipment 232 210 214 Non-Financial Liabilities Right to use Lease 243 264 263 Current Tax Liabilities (net) 35 Other intangible assets 9 8 6 Provisions 135 128 139 Intangible work-in-progress 4 2 Other non-financial liabilities 55 84 89 Other non-financial assets 109 137 148 Sub-Total Non-Financial Liabilities 190 212 263 Sub-Total Non-financial Assets 942 994 868 Financial Liabilities Financial Assets Trade Payables 2,974 3,779 6,264 Cash and cash equivalent (incl. Other Bank balance) 5,622 10,361 12,100 Lease Liabilities 211 247 252 Receivables 1,753 2,250 2,921 Debt Securities 37 Loans 126 128 272 Borrowings 615 2,381 629 Investments 4,400 4,841 5,484 Other Financial Liabilities 4,023 6,072 7,779 Other financial assets 1,310 831 1,064 Sub-Total Financial Liabilities 7,860 12,479 14,924 Sub-Total Financial Assets 13,211 18,411 21,841 Sub-Total Liabilities 8,050 12,691 15,187 TOTAL ASSETS 14,153 19,405 22,709 TOTAL EQUITY AND LIABILITIES 14,153 19,405 22,709 Investor Presentation 35#36Consolidated Financial Charts smc Moneywise. Be wise. Revenue (INR Mn) EBITDA (INR MN) & EBITDA Margin (%) PAT (INR MN) & PAT MARGIN (%) 14.98% 8,929 21.04% 20.93% 22.72% 7,528 7,785 7,824 19.22% 11.21% 6,439 1,778 9.94% 1,172 1,584 15.23% 1,869 8.03% 1,001 1,238 1,186 748 3.07% 517 239 FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 FY18 FY19 FY20 FY21 9M-FY22 Net Worth (INR Mn) 8,668 7,743 6,824 6,831 6,187 ROE % 12.92% 10.96% 8.35% 7.92% 3.49% ROCE % 11.18% 10.03% 10.21% 9.13% 14.34% FY17 FY18 FY19 FY20 FY21 H1-FY22 FY17 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Investor Presentation 36 36#3740% 20% Capital Market Highlights Share Price Data as on 31st December, 2021 0% -20% -40% -60% -80% -100% -120% Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Sensex Price Data as on 31th December, 2021 Face Value CMP 2.0 75.6 109.9/65.0 smc Moneywise. Be wise. Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 SMC Shareholding Pattern (as on 31st December 2021) 37.38% 52 Week H/L Market Cap (INR Mn) 8,552.9 62.35% 0.27% No. of Share outstanding (Mn) 113.1 Avg. Trading Volume ('000) 446.7 Promoters Public Other Dlls Avg. Net Turnover (INR Mn) 37.9 Investor Presentation 37 34#38Disclaimer smc Moneywise. Be wise. SMC Global Securities Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of SMC Global Securities Limited, which are expressed in good faith and in their opinion reasonable, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. For further information please contact our Investor Relations Representatives: XX® VALOREM ADVISORS Valorem Advisors Mr. Anuj Sonpal, CEO Tel: +91-22-49039500 Email: [email protected] Investor Presentation 38