[PPT] - Shriram Capital Ltd Sanlam Investor Day October 2012 Table of PowerPoint Presentation

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Shriram Capital Ltd

Sanlam Investor Day– October 2012

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Shriram Transport is the largest used CV finance provider in the country with approximately 25% market share
Shriram City is amongst the largest and one of the most well diversified retail finance NBFCs in India
Shriram Life leverages on the captive customer base and infrastructure of the Shriram Group
Shriram General focuses mainly on motor insurance which forms a large part of Shriram Transport and Shriram City portfolio

High Yielding Businesses with low NPAs

Shriram Transport with an FY12 RoA of 3.8% and an RoE of 22.8% is amongst the most profitable NBFCs with low NPAs of

0.44%

Shriram City Union with an FY 12 RoA of 3.1% and an RoE of 24% is highly profitable with low NPAs of 0.38%
Shriram Life turned profitable in the very 1st year of operation vs. 7-10 years for a typical life insurance firm without sacrificing

growth

Shriram General is among the few profitable general insurance companies despite following ‘Motor only’ strategy

Brand Equity

The brand “Shriram” is one the most trusted and reputed brands in India which lends a competitive edge in attracting

customers and exploring untapped business potential

Key Highlights- Shriram Capital

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Shriram Group Founder’s profile

Founder Chairman of the Shriram Group of Companies
Founded the Shriram Group in 1974 to cater to the financial needs of a very large “unbanked / credit starved” customers
Has envisioned and strategized the development of the financial businesses as well as the Shriram Group’s diversification into

non-financial businesses

By inculcating the philosophy of “putting people first”, has transformed the Shriram Group into India’s premier networked

financial services supermarket chain

Has four decades of experience in general insurance industry

– Has worked with New India Assurance Co. Ltd., J.B. Boda & Co. Pvt. Ltd. and has mentored several large insurance broking companies

Education:

 Masters in Mathematics  Masters in Mathematical Statistics from Indian Statistical Institute, Calcutta  Associate of Chartered Insurance Institute, London  Visiting faculty of Asian Institute of Insurance, Philippines on Consequential Loss Insurance

Mr. R. Thyagarajan

Founder, Shriram Group Among the most respected visionaries in the financial services industry in India

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Established in 1974, Shriram Group is one of the most respected Groups in India with a predominant presence in the financial services

space

Shriram Capital Limited (SCL) is the overarching holding arm of all the financial services entities of the group.
Currently its financial service businesses include commercial vehicle (CV) financing, retail financing, chit fund, equipment financing,

mortgages, life insurance, general insurance, stock broking, distribution of financial products and wealth advisory services.

Shriram Group (non financial services arm) has significant presence in engineering services, property development, information

technology and interest in auto component manufacturing and renewable energy.

The group manages assets of over US$ 13 bn (including non-financial services).
The group has been promoting financial inclusion across sections of the society.

Key Operating Parameters Branch Network Over 2,500 Marketing Force Over 100,000 Manpower Strength Over 51,000 Customer Base Over 9.3 mn Key Financials (aggregated(1),in USD mn) FY12 Revenue 2,670 Profit After Tax 369 Assets Under Management (AUM) 13,351

Note 1: Aggregated financials including non-financial services Note: FY12, FY11 & FY10 respectively represents Financial Year ending on 31st March 2012, 31st March 2011 & 31st March 2010 throughout this presentation Note: Exchange rate has been taken as 1 US $ = Rs. 52 throughout this presentation

Shriram Group Brief Overview

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Shriram Group

Shriram Enterprise Trust (holding Non-Financial Services Businesses) Shriram Ownership Trust (holding Financial Services Businesses) Shriram Capital Limited Shriram Chits (Tamil Nadu/ Hyderabad/ Karnataka/Maharashtra) (Chit Fund Business) Shriram Transport Finance (Listed) (Commercial Vehicle Finance) Shriram City Union (Listed) (Retail, Enterprise, and Gold loan ) Shriram Insurance Businesses (Life & General Insurance) Shriram Equipment (Construction Equipment Finance)

The Shriram group manages its businesses through two Trusts. These trusts are run independent of each other with a significant

number of trustees being independent professionals

Shriram Ownership Trust holds the financial services businesses and Shriram Enterprise Trust holds the non financial services

businesses

Shriram Credit Co. (Brokerage, Financial Product Distribution Infrastructure support and PMS & Wealth Mgt) Shriram Enterpreneurial Ventures Limited Engineering / Property Development / Information Technology / Auto Component Manufacture / Renewable Energy Shriram Housing Finance (Mortgages) Shriram Automall (Facilitate secondary sale of trucks)

Note: Only the main holding company and main operating businesses are depicted above

Shriram Group Holding Structure

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Shriram Group Partners and Investors

Business Company Investor Domain Investors Holding company Shriram Financial Ventures (Chennai) Private Limited International SANLAM Group of South Africa Shriram Capital Limited International TPG Investments Truck Finance Shriram Transport Finance International TPG Investments, Chryscapital, Blue Ridge, Tiger Global Management LLC Domestic Axis Bank, Citi Corp, JM Finance Ventures Retail Finance Shriram City Union Finance International TPG Investments, Merrill Lynch, Chryscapital, Cambridge Place Investment Management, Bessemer Venture Partners, Asia Bridge Domestic ICICI Venture Housing Finance Shriram Housing Finance International Valiant Capital Partners Life Insurance Shriram Life Insurance International SANLAM Group of South Africa Non-Life Insurance Shriram General Insurance Stock Broking & Distribution

f Financial Products

Shriram Credit Company International LeapFrog Financial Inclusion Fund Engineering Shriram EPC International Chryscapital, Bessemer Venture Partners, New Vernon, Argonaut Ventures, Hamon Group & Cie of Belgium, Leitwind B.V. Olympus Capital, India Industrial Growth Fund, Gaja Partners, Equipaggiamenti Electronic Industrial Domestic UTI – IAS Property Development Shriram Properties International Sun Apollo, Walton Street Capital, Starwood Capital, TPG Investments and India Opportunity Real Estate Fund

Note: Includes Past and Present investors & partners Includes only primary infusion. Does not include secondary/market purchases

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Arun Duggal

Chairman Shriram Capital

Chairman of Board of Directors of Shriram Capital, Shriram Transport, Shriram Properties, Shriram City, Shriram EPC and Bellwether Microfinance

Fund

Senior Advisor to TPG Capital and Vice Chairman of International Asset Reconstruction Company
Former Chairman of American Chamber of Commerce, India and was also on the Board of Governors of the National Institute of Bank Management
Prior to joining Shriram Group, he had a 26 years career with Bank of America, mostly in the U.S., Hong Kong and Japan
A Mechanical Engineer degree from Indian Institute of Technology (IIT), Delhi and an MBA from Indian Institute of Management (IIM), Ahmadabad

Governing Council Financial Services

Akhila Srinivasan

MD Shriram Life

Ms.Akhila is currently the Managing Director of Shriram Life Insurance Co. Ltd. which is a part of the Rs.60,000 crores Shriram Group.
Her contribution to the Group has been exemplary and has transcended professional excellence into one, filled with commitment, dedication and

exceptional work ethic.

Under her leadership, the Shriram Group set up the Shriram Foundation in 1993. Ms.Akhila is the State President of the Art of Living Foundation
She has been selected as one of the twenty-five Most Powerful Women in Indian business by ‘Business Today’ in the year 2008 & and as one of the

thirty Most Powerful Women in Indian business by ‘Business Today’ in 2010.

A K Singh

MD Shriram AMC

Mr AK Singh has a rich professional career of over 25 years out of which last 17 years have been in the Financial Services space. He has been

associated with Shriram Group since 1994 starting his career as the President of Shriram City Union Finance Limited

In 2005 he took up the position of MD in Shriram Insight Share Brokers, and He has recently taken up the position of MD of Shriram Asset

Management Company Ltd, a step forward for the group’s foray into wealth management

Mr.Akhilesh Kumar Singh is a B.Tech (IIT Kahargpur) and PGDM from IIM Bangalore

R Thyagarajan

Advisor

Founder of the Shriram Group of Companies
Founded the Group to cater to the financial needs of a very large “unbanked / credit starved” customers, and has transformed the Shriram Group

into India’s premier networked financial services supermarket chain

Among the most respected visionaries in the financial services industry in India

R Kannan

Advisor

R Kannan is amongst the senior-most Directors of the Shriram Group
Spearheaded group's Chit Fund companies to achieving the leadership status in the industry
S. Natarajan

Advisor

Joined Shriram Group in 2001 and is part of the core team
Responsible for strategy compliance of the group companies with statutory and regulatory bodies
A Chartered Accountant with specialization in taxation matters, strategic planning and corporate financial restructuring, property development and

promotion of new business initiatives

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Governing Council Financial Services

G S Sundararajan

Group Director

Former CEO & Managing Director of Fullerton India Credit Company Ltd, a fully owned subsidiary of Temasek Holdings, Singapore.
Had a long and distinguished career with Citi Bank
Holds a Bachelor of Engineering degree from Coimbatore and an MBA from Indian Institute of Management (IIM), Ahmadabad

Umesh Revankar

MD STFC

He has been with Shriram Group for last 24 years and possesses extensive experience in the financial service industry.
Mr Revankar is a storehouse of knowledge on the transport industry and has grown by hard work combined with a high degree of professionalism.
He holds bachelor's degree in Business Management from Mangalore University and MBA in Finance. He had attended Advanced Management

Program at Harvard Business School.

R. Sridhar

MD & CEO Shriram Capital

Fellow member of the Institute of Chartered Accountants of India
Joined Shriram in 1985 and was later promoted as President of the company in 1994 and appointed as Managing Director in 2000
Has over two decades of experience in the financial service sector, especially in commercial vehicle financing.
Member of Finance Industry Development Council and is actively involved with social organizations such as Shri Shanmukhananda Fine Arts &

Sangeetha Sabha, Mumbai (as a Treasurer) and Srikrishna Gana Sabha, Chennai (as a member)

JS Gujral

MD & CEO Shriram GI

Prior to becoming the MD & CEO of Shriram General Insurance, He was MD &CEO of Shriram Overseas Finance Ltd
Gujral is known for offering excellent and out of box Business solutions. He has been running the enterprise as a businessman and has created

five businesses including “SGI” as a new business from scratch

Mr Gural holds a bachelors degree in Commerce and is a Management Graduate and has done Advanced Management Program from Kellogg

Business School, Chicago and Executive Management program from IIM Ahmadabad.

R Duruvasan

MD Shriram City Union Finance

Mr.Duruvasan has been serving the Shriram Group for 34 years
Mr Duruvasan played a key role as Managing Director and Principal Officer of Shriram Life Insurance Co. Ltd in the initial 5 years of the company’s

story and was greatly responsible for making synergies from the groups customers and creating a potential life insurance business for the group

D V Ravi

MD Shriram Capital

Started his career with Karnataka Oil Seeds Federation, Bangalore in 1987 and joined the Commercial Vehicle Finance business of the Shriram

group in 1992

Areas of expertise include corporate strategy, synergy creation, risk management efforts, leadership development and corporate finance
Non Executive Director and Co-founder of TAKE Solutions Ltd, a global technology solutions and service provider
Commerce graduate from the University of Bangalore and post graduate in management from the Institute of Rural Management, Anand (IRMA)

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Shriram Capital An active holding company

Key Financials (Standalone, USD mn) FY12(1) FY11 Revenue 8 9 Profit Before Tax 1 1 Profit After Tax 1 3 Net worth 132 148

Note 1 : Based on effective stake Shriram Capital holds in various operating companies, the profit of Shriram Capital would be approximately USD 105 mn in FY’12

Aggregate Financials (USD mn) FY12(1) FY11 Revenue 2,011 1,664 Profit After Tax 345 290

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Shriram Capital Holding Structure

Shriram Retail Holdings Shriram Holdings (SHMPL)(1) Bharat Re- Insurance Broker Shriram Credit Company (SCCL)(2) Other investments Shriram General Insurance Shriram Life Insurance Shriram Capital Ltd Shriram Ownership Trust Shriram Transport Finance Co. Ltd. Shriram Enterprise Holdings Shriram Insight Brokers Shriram City Union Finance Ltd. Shriram Wealth Advisors Shriram Fortune Solutions TPG

10.48% 11.10% 51% 49% 51% 49% 41.26% 100% 100% 99.58% 67.49% 100% 90% 80% 97.83% Unlisted Holding Company Unlisted Operating Company Listed Operating Company

Legend

50.76% Holding chit business Strategic/JV Partner 5.04%

Note 1: SHMPL will be merged with STFC on receipt of High Court Approval Note 2: LeapFrog Financial Inclusion Fund, Mauritius invested in Compulsorily Convertible Preference Shares of SCCL representing 13.6% of its fully diluted equity share capital

Shriram Housing Finance Ltd Shriram Equipment Finance Company Ltd

100% 76.50% 4.39%

Shriram Automall India Ltd

100%

Shriram Asset Management Co. Ltd

40%

Shriram Financial Ventures (Chennai)

Pvt. Ltd

66.85% 78.42%

Sanlam

33.15%

Shriram Financial Products Solutions (Chennai)

100%

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Shriram Financial Ventures (Chennai)/ Sanlam Stake Holding Structure

Shriram Capital Ltd Shriram Ownership Trust Shriram Financial Ventures (Chennai)

Pvt. Ltd

Sanlam Emerging Market (Maritius) Ltd., Mauritus Sanlam Ltd. South Africa Commercial Vehicle Finance Insurance Business (Life and General) Brokerage, Financial Product Distribution Infrastructure support, Portfolio Management & Wealth Mgt Housing Finance Construction Equipment Finance Facilitation of Secondary sale of trucks

10.48% 66.85% 33.15% 78.42%

TPG

11.10%

Retail, Enterprise and Gold loan

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Shriram Capital Board of Directors

Arun Duggal

D. V. Ravi
R. Sridhar

G.S. Sundararajan Heinie Werth Sanlam Nominee Puneet Bhatia TPG Nominee

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Shriram Capital Senior Management Team

S.Murali Eexcuitve Director, CFO & Company Secretary

Has 23 years of rich experience in various industries in India and abroad
High level of expertise in financial services, financial analysis, risk management, valuation, regulatory/ compliance matters,

management study, identification of control weakness, framing of corporate financial policies for sound internal control systems, etc

Is a Chartered Accountant, a Company Secretary, Associate of the Chartered Institute of Management Accountants (UK) and a

CWA (India) R.Vasudevan

Chief Risk Officer

Rich experience of over 30 years as Head of Management Information/Finance/Accounts/Secretarial with leading Companies in

India in both financial and non-financial services sectors

One of the Promoter Directors of Proactive Solutech, Chennai, a Management Consultancy Company in operation since 1995
Head and Director (RISK Management Committee) for Shriram Group of Companies
Specalised in Corporate Finance, Resource Mobilization, Management Accounts ,Costing and Systems, Secretarial Functions,

Risk, Operational and Management Audit.

Commerce graduate , Cost Accountant and Associate Company Secretary

A.C.Sinha

Executive Director - External Relations

Vani Narayanan

Senior Vice President

Over 25 years of experience in various entities in financial services sector including Commercial Bank, leading Development

Financial Institution in India and NBFCs

Has been with Shriram Group since 2004
Science Graduate and an MBA from Indian Institute of Management (IIM), Bangalore

N.Mani

Senior Vice President

Has been with Shriram Group for nearly three decades
Rich and varied experience in the areas of Accounts/General Administration/Public Relations/Taxation
More than 25 years of experience in Operations and External Relations
Law Graduate and an MBA

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FY12

(12 months)

June’ 12

(3months)

Total Premuim 124 23 New Premuim 75 16 Total Capital Injected Profit after tax 34 11 34 Sum Assured 4760 4912

Note 1: Revenue is Net Interest Income (NII) + other income 2: TN: Tamil Nadu, AP: Andhra Pradesh, MH: Maharashtra and KT: Karnataka

Strategy Strengths Key Business Financials (US $ mn)

Shriram City Union

Leverage Shriram Group’s Chit fund

customer base and distribution infrastructure

Focus on and provide access to under-

banked sections of the society

Seasoned

credit policy processes backed by recovery skills of Shriram chits

Among the most diversified player in the

retail finance place

Offers gold loans (36% of total book),

small enterprise loans (29%), auto loan (18%), two wheeler loan (10%) and personal and consumer durables (7%) to retail consumers

Recently forayed into Housing finance.

Valiant Capital has committed to invest US$ 35 mn (Including US $ 15 mn already invested) for 23% stake

Shriram Transport

Continue growing its market share in pre-
wned CVs
Leverage existing franchisee for financing

new CVs and construction equipments

Ability to value pre-owned CVs
Recovery/ Collection skills
Geographical reach and proximity to

customers

Provides purchase finance for pre-owned

trucks (5-12 years old) to small truck

wners (owning less than 3 trucks)
Offers

value added services to Commercial Vehicle (CV) operators

Diversified into Equipment Finance with

FY12 AUM of US$ 370 mn and setting up

f Automall (market for sale of pre-owned

CVs) (Standalone) FY12

(12 months)

June’ 12

(3 months)

Revenue1 645 168 PAT 242 62 Net worth 1,145 1214 AUM 7,733 8062 (Standalone) FY12

(12 months)

June’ 12

(3months)

Revenue1 217 72 PAT 66 20 Net worth 336 356 AUM 2,583 2863

SCL Subsidiaries Business Snapshot

Shriram Life Insurance

Leverage

Shriram Group’s large customer base and network

Significant

expertise in designing products for ‘Bottom of Pyramid’

Association with Sanlam
Strong presence in TN, AP, MH and

KT(2)

Underwrite life insurance business
Offer a suite of investment and

insurance products

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Strategy

Focus on retail clients
Expand

into mass affluent segments

Aims to become a one stop

super store for all kind of insurance and investment products

Strengths

An active client base of 184,000

customers

A network of 700+ branches

and 1,189 trading terminals

Distribution footprint - a pan

India branch network of 360 branches and 37,000 agents

Clientele - Customer base of 1

mn+ through

Key Business

Equity (cash and derivative)

and commodities brokerage services to retail clients

Loan against shares (through

SCCL , an NBFC)

Distribution of financial products

like life & general insurance, fixed deposits, debentures and mutual funds

Financials (US $ mn)

Shriram General Insurance

Focus
n

tapping captive transportation customer base

Become market leader in motor

insurance in the medium term

Captive

customer base in transportation segment

Association with Sanlam
Strong presence in TN, AP, MH and

KT(1)

Collecdted Gross Premuim of over

USD 550 mn. within a span of 4 years (Market share of 5.63% in FY’12 )

Underwrite

motor, fire, engineering, liability and shopkeeper’s insurance

Note 1 :TN: Tamil Nadu, AP: Andhra Pradesh, MH: Maharashtra and KT: Karnataka 2: Aggregate revenue and PAT of Shriram Insight (broking business), Insight Commodities and Shriram Credit ( financing business) 3) Indicates to Profit before tax

FY12

(12 months)

June 12

(3 months)

Gross Direct Premuim 244 63 Net Premuim 125 59 Profit After Tax 12 5

FY12

(12 months)

June 12

(3 months)

Revenue2 12 3 Profit After Tax2 2 13 Net worth 16 17 FY12

(12 months)

June 12

(3 months)

Revenue 17 5 Profit After Tax 2 13 Net worth 3 4

Shriram Credit Company Limited (SCCL) Stock Broking Distribution of Financial Products

SCL Subsidiaries Business Snapshot

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Shriram Transport Finance Unique Business Model

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Source: Company filings, analyst presentations and research reports Note 1: Operating income is defined as Net Interest Income + Other Operating Income

Scale

One of the Largest NBFCs in asset financing space with 20-25% market share in pre-owned and 7-8% share in new truck

financing

Total AUM of $7.7 bn with a Net worth of $1.14 bn, generating Income(1) of $ 645mn (FY 12) )
Customer base has grown to 0.8 mn with an employee base of 15,057
Pan India presence with a network of 502 branches serviced by 8,155 field officers and partnership with 500+ financiers
c.60%+ branches located in growth corridor of the country – Maharashtra, Tamil Nadu, Andhra Pradesh and Karnataka
High footprint in difficult to access rural and urban areas

Geographic Spread

Yield on Advances are in 18% - 24% range for Pre-owned CVs and 15% - 16% for New CVs
Low cost of funds due to a) priority sector status with banks b) high credit appraisal and c) access to institutional funds
High level of valuation skills, locally drawn sales force - customer familiarity, and strong information network resulting in highly

efficient collection mechanism and hence low NPAs at 0.44% (FY 12)

Proprietary credit evaluation tools, asset backed lending with adequate cover and well defined incentive schemes for sales force

helps keep default rates low Margins and Asset Quality

Run by a professional management team and backed by a respected promoter group & global financial investors
Average work experience of the top team of over two decades
Presence of marquee investors like TPG, Equinox, ICICI Prudential Life, Genesis India Investment Company etc.

Promoters / Management

Target AUM of USD 9.5 bn by FY13
Do innovative tie-ups and target new products

 Tied up with Axis bank to distribute credit cards to small truck owners - Distributed over 1,70,000 credit cards (Mar ‘11)  Development of Automalls / Touch screen kiosks

Explore acquisition of CV portfolios on an opportunistic basis
Expansion of Shriram Equipment Finance business – FY 12

 Market expected to grow at a CAGR of 30% +driven by infrastructure spending Going forward

Shriram Transport Finance Key Highlights

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0.4% 0.2% 0.7% 1.2% 0.1% 1.0% STFC IDFC MMFSL Srei Sundaram LTFH NPA % Profitability: RoA, RoE (FY12, %) Scale: Net worth, Assets (FY12, US $ mn) Market Cap & P/B Multiple (FY12, US $ mn, x) Net NPA (FY12, %) 1,145 2,335 566 497 344 914 6,873 11,674 3,570 2,443 2,488 5,179

STFC IDFC MMFSL Srei Sundaram LTFH

Networth (YoY) Assets

2,815 4,627 1,782 264 895 1,675 2.5 2.0 3.1 0.5 2.6 1.8 STFC IDFC MMFSL Srei Sundaram LTFH

Market Cap P/B

Shriram

Transport Finance compares well in almost all fundamentals as compared to peers  Comparable size to its peers in terms of size of balance sheet  One among the best in peer group return on assets & equity  Optimising growth with keeping asset quality (NPAs) in check  High P/B multiple suggesting market expectations of solid foundations coupled with high future growth potential

Note : 1) LTFH – consolidated financials considered 2) Market Price - October 2012

Shriram Transport Finance Peer Analysis

3.8% 2.9% 3.9% 2.8% 2.1% 22.8% 13.0% 22.8% 2.3% 21.4% 11.9%

STFC IDFC MMFS Srei Sundaram LTFH

RoA RoE

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Retail & Small Enterprises financing model Small Enterprises Finance

Personal Loans / Consumer Durable

Retail Loan

Two wheeler Loans Auto Loans Loan against gold

Shriram City Started Average Tenor Average Yield % of Portfolio Growth YoY (FY’12) GNPA (%) NNPA (%) Consumer Durable / Two Wheeler Dec’ 2002 24 months 24-26% 12% 18% 6.31% 1.89% Personal Loans Jan’ 2006 30 months 24-27% 5% 33% 4.12% 0.00% Auto Loans Oct’ 2005 30 months 22-24% 18% 108% 3.23% 0.73% Loan against Gold Oct’ 2006 4 months 18-20% 36% 47% Nil Nil Small Enterprises Finance Dec’ 2005 36 months 22-24% 29% 156% 0.59% 0.28%

Focus on under banked segments of society in difficult to access rural / semi urban areas resulting in high yield on assets
Localized sales force, seasoned credit approval processes and shared recovery responsibility results below industry average

NPAs Business Model

Shriram City Union Finance Unique Business Model

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Difficult to replicate Portfolio

Amongst the largest and most diversified players in the retail financing space
Target under-banked customers who are otherwise not eligible for credit
Access to 9.3 mn Shriram Group client base
Focus on rural and semi-urban areas; 80% of branch network in such areas
Pan India presence with an existing concentration in South India; expanding into other geographies
Field force drawn locally – advantage of domain knowledge & personal knowledge of the customers

Focus Market & Geographic Spread

Streamlined processes & clear responsibility lines results in efficient disbursal and collection machinery

– Originations & Credit evaluation through own team; Centralized broad policy formulation; Decentralized decision making authority – Credit team responsible for monitoring early warning signals, deal originators being responsible for the portfolio quality

Successful execution of above policies reflects in results – GNPA at 1.55% and NNPA at 0.38%

Credit Policy & Asset Quality

Run by a professional management team and backed by a respected promoter group & global financial investors
Presence of marquee investors like TPG, Bessemer, IDBI Trusteeship, Asia Bridge, NVP Ventures etc.

Promoters / Management

Product expansion across branches; still large number of branches do not offer full suite of Shriram City products
Leverage Shriram group’s network and clientele to grow its newly launched mortgage finance business
Continued focus on small business loans (especially very small and under banked enterprises)

Going forward

Source: RBI, Company filings, analyst presentations and research reports

Borrowing Mix & Margins

Optimum borrowing mix with bank borrowing at 55%, retail borrowing at 27% and market borrowing (incl. public NCD) at 18%

– Has been able to reduce dependence on bank from 60% in Mar 11 to 55% in Mar 12; cost of funds remains low at 10%

Focus on high-yielding assets (with yield on advances of 18 - 22%) secured by quality assets
~95% of the loan book is secured with 63% by assets like auto, two-wheelers & gold

Shriram City Union Finance Key Highlights

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0.4% 0.0% 0.1% 0.3% 0.0% 0.3%

SCUF Magma Bajaj Finance Manap

puram

Future Capital Chola

NPA %

Profitability: RoA, RoE (FY12, %) Scale: Net worth, Assets (FY12, US $ mn) Market Cap & P/B Multiple (FY12, US $ mn, x) Net NPA (FY12, %)

317 208 387 458 156 273 2,432 1,536 2,486 2,322 901 2,581

SCUF Magma Bajaj Finance Manap

puram

Future Capital Chola

Networth (YoY) Assets

3.1% 0.9% 3.8% 6.0% 2.3% 1.5% 24% 6% 24% 27% 12% 14%

SCUF Magma Bajaj Manap

puram

Future Capital Chola

RoA RoE

806 237 949 645 197 589 2.5 1.1 2.5 1.4 1.3 2.2

SCUF Magma Bajaj Finance Manap puram Future Capital Chola Market Cap P/B

Shriram City Union Finance

compares well in almost all fundamentals as compared to peers  One among the best in peer group return

n

assets & equity  Optimizing growth and asset quality (NPAs)  High P/B multiple suggesting market expectations

f

solid foundation coupled with high future growth potential

Note: Market Price - October 2012

Shriram City Union Finance Peer Analysis

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27

2

27

Competitive Advantage

Access to captive customer base of Shriram Transport and two wheeler/ auto loan customers of Shriram City Union.
Enhanced ability to mitigate two key risks a) pricing based on competitor pricing and not on risk and b) ‘moral hazard’ i.e. fake

claims

The captive customer base of Shriram is well spread over the country with concentration in Southern states. These states are

among the most developed in terms of GDP growth, banking habits and per capita income

Currently operates 92 branches. New branches breakeven early due to presence of an existing clientele and distribution network

Focus market & products

Currently offers 46 products including Burglary Insurance, public liability insurance, marine cargo, money insurance, property

insurance, housekeep umbrella insurance and shopkeeper umbrella insurance among others – However, de-tarification of industry in last 4 years has led to heavy discounting on most of these products. Focus on profitable growth has led Shriram General to pursue Motor insurance. Also, pursuing motor insurance capitalizes on the captive customer base (especially Small Road Transport Operators) of the Group companies Products

Promoted by Shriram Group with an excellent track record in the financial services business in Joint Venture with Sanlam Group,

a well established financial services Group in South Africa with an asset base of around US $ 60 billion. Sanlam Group has in its fold Santam Limited the leading short term insurer in South Africa Promoters / Management

Going forward Shriram General would continue to focus on motor insurance primarily to Small Road Transport Operators and

deliver high return on capital.

Will resume underwriting non motor business as and when the discounting in non motor stabilizes.

Going forward Profitability Margins

One of the few general insurance companies that are currently profitable due to its focus on profitable growth

– Appropriate pricing of the motor insurance based on risk and ability to reduce fake claims – Stopped underwriting non-motor insurance due to heavy discounting by competitors

Claims/Benefit paid ratio of 70% and Opex ratio of 10% to total income

Shriram General Insurance Key Highlights

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19%

11% 56% 18% 19% 26% 18% 7% 11% 42% 53% 38% 40% 53% 38% 42% 16% 14% 18% 15% 8% 9% 5% 14% 8% 8% 23% 17% Shriram General Bharti AXA Future Generali Chola Royal Sundaram Tata AIG Universal Sompo

Fire Marine Motor TP Motor OD Health Others 92 50 84 93 94 53 78 Shriram General Bharti AXA Future Generali Chola Royal Sundaram Tata AIG Universal Sompo

Branches

FY12 Total Premiums (US $ mn) FY12 Shareholder’s Account Profit after Tax (US$ mn) FY12 Branches

Shriram General Insurance

was established in 2008 and commenced

perations thereafter
It is one of the most

successful Non-Life Insurers amongst the new established players  It is one of the few profitable general insurers in India  It benefits greatly from the strong distribution capabilities as well as loyal customer base of the Shriram Group

244 170 177 259 285 316 78

FY12 Product-wise Distribution (%)

Shriram General Insurance Peer Analysis

12

27
10

4

5
23

Shriram General Bharti AXA Future Generali Chola Royal Sundaram Tata AIG Universal Sompo

Policyholder's PAT

SLIDE 29

29

Competitive Advantage

Access to Shriram Group customer base of 9.3 mn and infrastructure
Low cost of operations due to access to Group customer base and infrastructure
Promoted by Shriram Group with an excellent track record in the financial services business in Joint Venture* with Sanlam Group

a well established financial services Group in South Africa with an asset base of around US $ 60 billion. Sanlam Group has in its fold the Santam Limited the leading short term insurer in South Africa.

* - Since disinvested by Sanlam Group in September 2012

Promoters / Management

Expand modularly in geographic and customer segments profitably.

Going forward Profitability Margins

Earned profits in the very first year of operations
Apart from SBI Life, the only private insurer to have cumulative profits at the end of 5 years of operations
Commission paid ratio of 8% and Opex ratio of 20% to total premium income

Shriram Life Insurance Key Highlights

SLIDE 30

30

135 208 181 185 60 33 14 6 15 53 8

Sahara Life Shriram Life Bharti Axa Life Future Generali Life IDBI Federal Canara HSBC OBC Life

Branches Agents ('000)

FY12 Total Premiums (US $ mn) FY12 Shareholder’s Account Profit after Tax (US$ mn) FY12 Branches & No. of Agents (1)

6 11

37
25
13
17

Sahara Life Shriram Life Bharti Axa Life Future Generali Life IDBI Federal Canara HSBC OBC Life

Shriram Life Insurance was

established in 2005 and commenced

perations

thereafter

It

is

ne
f

the most successful Life Insurers amongst the new established players  It is one of the few profitable life insurance companies in India  It benefits from the strong distribution capabilities as well as loyal customer base

f

the Shriram Group

1,962 1,229 2,696 565 1,132 2,526 1,439 43 124 149 150 142 358

HDFC Life Max NYL ICICI Pru Life Kotak Old Mutual Birla Sunlife SBI Life Bajaj Allianz Sahara Life Shriram Life Bharti Axa Life Future Generali Life IDBI Federal Canara HSBC OBC Life

Oct ’00 Nov ’00 Nov ‘00 Jan ‘01 Jan ‘01 Mar ’01 Aug ‘01 Feb ‘04 Nov ‘05 Jul ‘06 Sep’ 07 Dec’ 07 May 08

Established in: Note : 1 Except Shriram Life others figure are based on FY’ 11

Shriram Life Insurance Peer Analysis

SLIDE 31

31

Shriram Credit Company

Shriram Credit Company Limited

(SCCL) incorporated in 1980 is a Non-Deposit taking NBFC registered with RBI

SCCL

is directly engaged in Financing activities mostly Loan against Shares

Through its subsidiaries, SCCL is

engaged in  Stock Broking (Shriram Insight Share Brokers Limited)  Distribution of Financial Products (Shriram Fortune Solutions Limited)  Infrastructure Provider (Shriram Financial Products Solutions (Chennai) Private Limited)

Expanded into Wealth Management

Services (Shriram Wealth Advisors Limited) activities of which are at a nascent stage.

Leapfrog invested US$ 15 mn. in

October 2011 for 13.57% stake valuing the company at around US$ 110 mn

Shriram Credit (NBFC)

Business: Loan Against Shares and holdco for other companies

Shriram Insight Share Brokers

Business: Stock and commodity Broking

Shriram Fortune Solutions

Business: Infrastructure Provider

Shriram Financial Products Solutions (Chennai)

Business: Distribution of financial products

Shriram Wealth

Business: PMS & Wealth Mgmt. (yet to commence business)

SLIDE 32

32

Shriram Insight Share brokers, incorporated in

1995, is a professionally managed stock broking arm of Shriram group  Commenced operations in cash segment at NSE in 1996  Commenced operations in derivatives at NSE in 2003  Commodity broking services on MCX through a wholly owned subsidiary

Focused on retail clients

 An active client base of 184,000 customers  Aims to target mass affluent customers to drive next level of growth

Products include equities broking, derivatives

broking, commodities broking (through a 100% subsidiary), online trading, margin financing, trading, IPO distribution, demat account and basic research support (intraday calls, technical analysis etc)  Member of National Stock Exchange (NSE) (equity and derivatives) and Bombay Stock Exchange (BSE) for stocks  Depository participant with Central Depositary Services (India) Limited (CDSL)

Has a network of around 700 + branches and

1,189 trading terminals Key Financials

Key Financials (in USD mn) FY’12 FY11 Revenue1 12 18 EBITDA1 3 4 PAT1 2 2 Net worth 16 15 Total Assets 22 31

Note 1 : Aggregate revenue and PAT of Shriram Insight (broking business), Insight Commodities and Shriram Credit (financing business) Source : Corporate website

Peer Comparison (FY11 Revenue & Profit after Tax(1) (US$ mn))

18 31 24 502 54 2 11 2 150 10

Shriram Insight A.K. Capital Emkay Indiabulls Geojit BNPP

Revenue PAT

Shriram Credit Shriram Insight Share Brokers

SLIDE 33

33

Shriram Fortune/ Shriram Financial Products distribute a

range of investment and insurance products, primiraly of Shriram Group and offer infrastructre support services / training facilities

A nationwide distribution network with 428 branches and

an agency force of more than 50,000 personnel catering to a pan India customer base of more than 1.5 million  Direct presence through 65 branches and an indirect presence through 363 branches  An employee base of 2,300

Products distributed :

 A range of deposits/ debenture products of Shriram Group  Life insurance products of Shriram Life  General insurance products of Shriram General and Health Insurance of Apollo Munich, Star Health, etc.  Mutual fund products of 34 Asset Management Companies (AMC) (out of a total 44 AMCs active in India) Total Volume of investment & insurance product distributed by Shriram Group

Source: Corporate website

Peer Comparison (FY12 Branches & Clients)

644 300 100 0.25 1,500 541 160 374 8 428

Geojit BNPP Indiabulls Emkay A.K. Capital Shriram Fortune Solutions Clients ('000) Branches

Particulars (in USD mn) FY12 FY11 Deposit / Debenture 476 439 Life Insurance (APE) 24 28 General Insurance 3 2 Mutual Fund 2 1

Shriram Credit

Shriram Fortune Solutions/Shriram Financial Product Solutions (Chennai)

SLIDE 34

34

Consolidate STFC operations and maintain a modest growth rate
Grow SCUF into a large enterprise finance entity at an attractive growth rate
Expand modularly in geographic& customer segments profitably for SLIC
Expand and develop Corporate Insurance programs, while simultaneously growing the Motor book
The large customer base of the group will continue to be data mined for Financial product distribution and Brokerage services

Growth in existing businesses Shriram Capital

Institutionalize active engagement with all operating companies
Identify and induct Strategic partners & financial investors in SCL and subsidiary companies
Prepare for a potential IPO of SCL and other unlisted companies

Shriram Capital Future Plans

Drive financial inclusion and provide a wider product suite to existing customers as well as new customers in the

same/similar space

Deepen our presence by covering new customer segments in its existing geographies as well as by expanding its

distribution presence in new geographies to tap the unbanked/under-banked customers in those locations

SLIDE 36

www.shriram.com www.shriramcapital.com

Forward Looking Statement Certain statements in this document with words or phrases such as “will”, “should”, etc., and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to a number of risks or uncertainties associated with the expectations. These risks and uncertainties include, but are not limited to, our ability to successfully implement SCL’s (the Company) strategy and changes in government policies. The Company may, from time to time, make additional written and oral forward looking statements, including statements contained in the Company’s filings with the stock exchanges and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.

Shriram Capital Ltd Sanlam Investor Day October 2012 Table of - - PowerPoint PPT Presentation

Shriram Capital Ltd

Sanlam Investor Day– October 2012

Table of Contents

Table of Contents

Key Highlights- Shriram Capital

Table of Contents

Shriram Group Founder’s profile

Shriram Group Brief Overview

Shriram Group Holding Structure

Shriram Group Partners and Investors

Governing Council Financial Services

Governing Council Financial Services

Table of Contents

Shriram Capital An active holding company

Shriram Capital Holding Structure

Shriram Financial Ventures (Chennai)/ Sanlam Stake Holding Structure

Shriram Capital Board of Directors

Shriram Capital Senior Management Team

SCL Subsidiaries Business Snapshot

SCL Subsidiaries Business Snapshot

Table of Contents

Shriram Transport Finance Unique Business Model

Shriram Transport Finance Key Highlights

Shriram Transport Finance Peer Analysis

Shriram City Union Finance Unique Business Model

Shriram City Union Finance Key Highlights

Shriram City Union Finance Peer Analysis

2

Shriram General Insurance Key Highlights

Shriram General Insurance Peer Analysis

Shriram Life Insurance Key Highlights

Shriram Life Insurance Peer Analysis

Shriram Credit Company

Shriram Credit Shriram Insight Share Brokers

Shriram Credit

Shriram Fortune Solutions/Shriram Financial Product Solutions (Chennai)

Table of Contents

Shriram Capital Future Plans

www.shriram.com www.shriramcapital.com