SMC Investor Presentation

· 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

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