Company Introduction

Presentation structure

 Our business description

 Underlying mega opportunity
 Our evolution
 Financials
 Our growth strategy
 We are well positioned
 Our motto
Our business description
The money you earn

Savings

Earnings

Expenditure
The money you invest

Bank Deposits

Financial Non Bank Mutual Funds

Instruments Instruments
Life Insurance

Money Equities
you invest
Bullion Bonds & Small Savings

Company Deposits
Commodities
Non-financial
Instruments
Real Estate

Art
Our Business Model

From advice to execution in financial services

Portfolio of offerings

Loan Products Insurance

Information Execution
Commodities Mutual
& &
Funds
Advice Service
Fixed
Equities
Income
products
Corporate structure

Wholly owned subsidiaries

India Infoline Limited
Content related services – Equity research & online media

India Infoline India Infoline.com India Infoline India Infoline India Infoline
Securities Private Distribution Insurance Commodities Investment
Limited Company Limited Services Limited Private Limited Services Private
• Member BSE, NSE Mobilization of • Member MCX, Limited
• Margin funding &
• Corporate agent
• Equities & personal investment for ICICI Prudential NCDEX Financing
Derivative Broking products like • Commodities • Got NBFC license
Life Insurance
• Depository • Mutual funds Broking
Services • RBI Bonds Company Limited
Membership of Dubai
• Portfolio • Fixed Deposits etc. Gold & Commodities
Management Exchange
Services
Underlying mega
opportunity
Positive macro- economic environment
Sustainable Economic Growth High GDP Growth Rate(1)
10 10 year Real GDP CAGR % Composition of GDP - 2004

One of the fastest growing economies 9 Agriculture

8 Services

Faster GDP growth driven primarily 7

6 Industry
Services sector growing much faster 5
4
Fourth largest economy in the world on 3

PPP(2) 2
1
India outsourcing story gathering 0

Taiwan
Malay
India

Korea
China

Phil
Sing

Thai
HK

Indo
momentum – IT services, financial
Source: CLSA Asia-Pacific Markets

services, healthcare & manufacturing Favourable Shift in Demographics(2)

Infrastructure investment- private push (% Households)
7%
Recent upgrades in sovereign credit High 3.4 5.6 9.0

ratings driven by strong improvement in

10.8 13.8 17.5
external sector and gradual fiscal deficit Upper middle

correction Middle 39.8 37.6 47.9

Largest number of young working class

augurs well for investment services Low 41 31 25

industry 2002 2006E 2010E

 Opportunities for ‘Investment Advisory’
services
 Household sector contributes ~94% of Falling interest rates
the total domestic savings 25 Prime Lending
Rate
 Equities contribute less than 2% of the 20
total savings – set to grow from here
 Interest rates have been falling 15

 Changing investment habits- From 10

‘lazy’ to ‘advised’
5

0
1991 1993 1995 1997 1999 2001 2003 2005

Median Age of population India has high and growing savings rate
45 35
(Years)

30
40
25
35
20

30 15

10
25
5

20 0
India USA China Russia UK 2000 2001 2002 2003 2004 2005

2000 2025
Industry structure is changing
The Existing structure The Emerging industry order

nt e d, Large national players

me
Frag players
ll
sma

tio n Advice and service

e cu
Ex driven
s
focu

c
s pecifi
du ct One stop
Pro
s investment shops
shop
Broking industry is consolidating
Increasing share of top 25 brokers*

Market share(%) of top brokers on NSE

40 Market share(%) of top brokers on NSE

35

30
Next 15

25

20

Next 5
15

10

Top 5
5

2002 2003 2004 Now

Our evolution
Promoters
 Experienced promoters with excellent academic & professional
credentials
Mr. Nirmal Jain- MBA from IIM Ahmedabad
CA ( All India Rank 2)
Cost Accountant

R. Venkataraman- MBA from IIM Bangalore

B.Tech (Electronics) from IIT Kharagpur

 High quality Private Equity Investors including Intel, ICICI, TDA

Capital, Reeshanar, DSP Merrill Lynch capital & Times Group.
 Key milestones
 Incorporated on October 18, 1995 as Probity Research & Expanding Pan India footprint
180 +
Services
 Launched Internet portal www.indiainfoline.com in May 1999
 Commenced distribution of personal financial products like
Mutual Funds and RBI Bonds in April 2000
 Launched online trading in shares and securities branded as
www.5paisa.com in July 2000
 Started life insurance agency business in
December 2000 as a Corporate Agent
 Became a depository participant of NSDL in September 2001
 Launched stock messaging service in May 2003
 Acquired commodities broking license in March 2004
 Launched portfolio management services in August 2004
 Listed on NSE and BSE on May 17, 2005
 Acquired 75% stake holding in Moneytree Consultancy
services in October 2005
 Acquired 100% equity of Marchmont Capital Advisors Pvt Ltd
in December 2005
Organization structure
Board of Directors

Managing Director
Nirmal Jain
Executive Director
R. Venkataraman

Channels Products Research Support

Branches Mutual Funds Content Services Finance

Direct Sales Insurance News desk/ websites Technology

Corporate & Institutional 5paisa Market/ Institutional Marketing

FAN & Venue Commodities Audit

PMS Corporate Planning

Online Media/ SMS HR & Training

Customer Service

Compliance
Strong financials
Topline growth Profitability growth
2500 Rs Mn
800 Rs Mn
PBT
700
2000
600 Tax
0%
1500 500 : 21
14 6% GR
GR: 400 CA
CA
1000
300 PBT
PAT
Tax
200
500
100 PBT PAT
PAT
0 0
2004 2005 2006 Mar-04 Mar-05 Mar-06
-100

Business composition EBIDTA & Margins

1000 EBIDTA (Rs Mn) EBIDTA margins 45

900 40
Other Income 800 35
Financing & Investing 700
30
600
Online Media & 25
Content 500
20
400
15
Mutual 300
Funds 200 10
Equities
100 5
Life
Insurance 0 0
Mar-04 Mar-05 Mar-06
Commodities
Our Strategy

Focus on people & processes and not only

performance

People
 Driven by owner mindset

Processes to make
 Research & Technology second to none
People

Owner mindset is the only test used for

Recruitment,Rewarding as well as Retrenchment

It comes right from the top

Chairman video clip

Processes

Processes focus on making our core competencies

better everyday

It again comes from the top

Director video clip

We are well positioned
Our core competencies

 Superior original research

 Cutting edge technology
 Customer-centric values
Superior original research

 Well organized database and well honed skill base

 Demonstrated ability to spot trends, winners
ahead of market
 Well net worked in Indian Corporate world
 Over 200 CEO interviews in a year
 Over 300 company/ plant visits
Cutting edge technology

Trader Terminal
 A revolutionary way to trade online
 Incredible speed of order execution
 Streaming quotes
 Real time intra day charts
 Highly advanced data compression and
management
 Trader friendly unique features
Cutting edge technology
Unique delivery model
Multiple access points

Online Offline Over the phone At your doorstep

Middle-office
Risk Management System

Back-office
Funds and Securities accounting and management

Seamless integration using Technology

Customer centric values
Value Addition- Tangible

Product Servicing
Planning Access
Product Integration Information and
& and
Breadth & Integration Account
Advice Delivery
Execution Management

Advice tailored Selection of Ability to Information Channels Customer

to individual products build on and access service and
profiles and brands individual companies, devices account
e.g risk, goals, offered portfolio at markets, supported maintenance
needs, past one place securities,
behavior
Customer centric values
Value Addition- Intangible

Prestige Discretion Security Access To

Globalness
and and and Private Networks,
Recognition Privacy Trust Exclusivity

Satisfaction Maintaining Reassurance Access to Worldwide

from being privacy of that interests special Web based
treated information are protected Opportunities support
with care and usage and
networks

We expanded our product offering to complete the value chain from

awareness to information to decision to action
Our motto
Motto 1 Citius

Faster

 Retail is booming
 We see a rapid consolidation in the industry
 Either grow rapidly or be edged out
 Business is constrained not by availability
of customers but by availability of people
and systems
Motto 2 Altius

Higher

 Speed by itself will not fetch success

 To get into new orbit of growth we have to
fly much higher
 We have to raise the bar in every aspect of
our business
 Urge to excel and eye on quality alone will
allow sustainable growth
Motto 3 Fortius

Stronger

 To fly high and fast, we have to be stronger

 We have to face the challenges of
 Competition that can be nasty
 Environment that can be unpredictable
 Regulator that can be very demanding
 Profitability alone builds muscles
 Robust systems and solid people hold the key
Video Clip
Citius,Altius,Fortius
Welcome to India Infoline!!!