Corporate Presentation – Q2 FY12 11

1

Corporate Presentation – Q2-FY13

Corporate Presentation – Q2 FY12 2

Overview

* $ Conversion rate = 52.6970 on 28 Sept 2012, RBI

Future Capital Holdings Limited (FCH) is a Systemically important NBFC with record ofconsistent growth & profitability. FCH has a comprehensive product suite to meetmultiple financial needs of customers including Consumer Lending, Corporate Lendingand Wealth Management services

FCH has Loan Assets of Rs. 44.20 bn (~ $ 838.87 mn*) as of 30 September 2012.FCH focuses on secured lending with high asset quality – Gross and Net NPA of theCompany stood at 0.18% and 0.04% respectively as of 30 September 2012.

FCH has a strong distribution set up through 202 branches across India covering morethan 40 cities. FCH has a workforce of 1272 employees ably led by highly experiencedand reputed management team.

The Net Worth of the Company is Rs. 9.79 bn as of 30 September 2012

On September 28, 2012, Warburg Pincus acquired 40% of FCH from promoters andadditionally infused Rs. 1.00 billion of primary capital into the company. Post thecompletion of Open Offer for acquiring 26% from the public, Warburg Pincus as thepromoter now holds 67.35% of the entire equity share holding of the Company

Corporate Presentation – Q2 FY12 3

Our Vision

To provide MSME clients with capital and support the growth of Micro,Small and Medium Enterprises in India.

To capitalize on growing consumption in India, which is a key driver ofthe Indian economy.

To help our clients succeed by providing innovative product solutions,high level of convenience, supported by robust technology.

To grow into a significant financial conglomerate and build businessesof retail loans, corporate loans & Wealth Management.

Corporate Presentation – Q2 FY12 4

Comprehensive Suite of Products & Services

Borrowing needs Protection needs

Planning needsInvestment needs

Mortgages (for SMEs)Gold LoansConsumer Durable LoansTwo Wheeler LoansHome LoansWholesale loans and syndication

Distribution of :Property BrokingMutual FundsReal Estate FundsEquity BrokingCommodity Broking

Estate Planning- Creation of Private TrustWills CreationReal estate AdvisoryWealth Management Financial Planning

Distribution of :Life InsuranceGeneral Insurance

Auto InsuranceHealth insurancePersonal accident insurance Travel insurance

Consumer

Corporate Presentation – Q2 FY12 5

Loan Book – Changing Composition

The Company plans to continue increasing the contribution of retail loan book to theoverall loan book

19%

81%

29%

71%42%58% 58%

42%

FY10 FY11 FY12 H1-FY13

Wholesale Credit Retail Credit

Corporate Presentation – Q2 FY12 6

Retail Loan Book Composition – Q2-FY13

The retail loan book of the Company has increased by 56% from Rs. 16.30 Bn in Q2-FY12 to Rs. 25.50 Bn in Q2-FY13

Mortgage Loans 74%

Gold Loans 14%

Two-wheeler Loans

3%

Consumption Loans

3%

Others 6%

Corporate Presentation – Q2 FY12 7

Branch Network

Through an Extensive Branch Network, FCH has reachedCustomers across most of the states and major cities(Tier -1, Tier -2) in India

Total 202 Branches

Delhi & NCR

Mumbai& ThanePune

Bangalore

Hyderabad

KolkataBaroda

Bhopal

Bhubaneswar

Chandigarh:

Coimbatore

Dehradun

Indore

Jaipur

Jalandhar:

Jodhpur

Lucknow

Ludhiana

Nasik

NagpurRaipurRajkot

Surat:

Udaipur

SalemVellore

Vizag

Ahmadabad

Ajmer

Amritsar:

Chennai

Kotta

Corporate Presentation – Q2 FY12 8

Processes - Underwriting controls

• At Future Capital, there is segregation of authorities and responsibilities across all functions. Sales, credit, operations and collections are independent of each other, with independent reporting lines.

• We underwrite all loans on the basis of cash flow capability of the customers as well as LTV norms.

• Proposals are checked with credit bureaus, and loans are approved only if the customers have a clear record with India’s leading Credit Bureau, CIBIL.

• A robust collections infrastructure is in place.

Corporate Presentation – Q2 FY12 9

Mortgages - Application to Approval Ratio

9

Rigorous and robust credit assessment processes in FCH help in maintaining the high assetquality and low NPA levels

In Mortgages, 29% of the total applications aredisbursed after passing through several levels ofscrutiny and checks, mainly centred around cashflow evaluation, credit bureau and reference checks

100

29

-7

-39

-5-10

-10

Application Logged in

CIBIL Rejections

Rejections due to

Insufficient Cashflow

Rejections after

Personal Interview

Rejections due to

Defective Title Deeds

Others Rejections

Net Disbursals

Corporate Presentation – Q2 FY12 10

Funding (as on 30 September 2012)

We follow a policy of only matched funding for all assets, and majority of theborrowing are long term in nature.

Bank Borrowings,

69%NCD, 9%

Short Term Borrowings,

5%

Equity, 17% Long Term

Long Term

Long Term

Corporate Presentation – Q2 FY12 11

Equity Shareholding Pattern (as of 07 Nov 2012)

• Financial Institutions include Banks, Mutual Funds, Insurance Companies and other Financial Institutions• Others include NRI-Repatriable, NRI-Non-Repatriable, Clearing Members and Trusts

Promoters (Warburg

Pincus-Cloverdell)

67.35%

FII,0.93%

Financial Institution,

0.19%

Bodies Corporate,

22.04%

Individuals, 7.39%

Others, 2.10%

Corporate Presentation – Q2 FY12 12

Financials

Corporate Presentation – Q2 FY12 13

Significant Changes in Accounting Policy in FY 13

During the quarter ending September 2012, the company changed the accounting policy and made itmore conservative. These changes and its impact on the P and L are described below.

The company, in the course of its normal business collects fees for wholesale lending, receivesincome by assigning loans, and pays fees for securing credit limits to financial institutions.

The net income (A)* of these activities is positive. So far, the company has followed a policy ofbooking this income upfront. From Q2-FY13, this income is being amortized over the average tenureof loans, and therefore the profits will accrue to the P&L of the company over the life of the loan.

Since in FY12 the above income was accounted upfront, and in FY13 this is being amortized, theYOY and QOQ financials are not comparable.

The net income from such activities in FY12 was Rs. 946 mn. On an average, the net positive incomeevery quarter from such activities, booked upfront, in FY12, was Rs. 236 mn.

Under the revised accounting policy this is being amortized over the life of the contract. Had thecompany continued with the earlier policy, the Net Profit of the company for Q2 FY13, would havebeen Rs. 288 mn and the Net Profit for the H1 FY13 would have been Rs. 548 mn.

* Explained in detail in the next slide

Corporate Presentation – Q2 FY12 14

Simulation on effect of Amortization of Income in FY 13

This slide is a simulation to understand the impact of the new policy of amortising net income.

For purpose of this simulation, the actual performance of FY12 for income from such activities hasbeen assumed constant over 8 quarters, and the impact has been demonstrated here. The actualincome from these activities in the quarters to follow in 2013 and beyond may be more or lessdepending on market conditions and this table should not be read as a guidance for the futureperformance.

Period Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8

Net Income under Upfront Accounting (earlier Accounting method) (A) 236 236 236 236 236 236 236 236

Net Income under Amortized Accounting (new Accounting Method) (B)

21 41 62 83 103 124 145 165

Impact on Quarterly P&L (B-A) -215 -195 -174 -153 -133 -112 -91 -71

As seen from the table above, though the income recognition to P&L is lower in the immediatequarters as per the new accounting method, eventually the profits will converge and the impactis neutralised over time.

Amounts are in Rs. Mn

Corporate Presentation – Q2 FY12 15

Profit & Loss Statement (Consolidated)

Particulars Q2-FY 13 Q2-FY 12

Interest Income 1,793.64 1,356.39

Less: Interest Expense 1,219.97 823.12

Net Interest Income (NII) 573.67 533.28

Income from Assignment 22.26 66.61

Fee income 60.92 177.55

Other Income 252.02 74.53

Total Income 908.87 851.97

Opex 684.63 404.66

Operating profit 224.23 447.30

Provision 16.52 36.18

PBT 207.71 411.11

Tax 25.69 127.38

PAT 182.02 283.74

All figures are in Rs. mn unless specified

Corporate Presentation – Q2 FY12 16

Balance Sheet (Consolidated)

Particulars As on September 30, 2012

As onMarch 31, 2012

SOURCES OF FUNDS

Net worth 9,794 8,316

Loan funds 46,981 43,863 Total 56,775 52,179

APPLICATION OF FUNDS

Fixed Assets 413 1,087Deferred Tax Asset (net) 105 69Investments 111 228

Current Assets, Loans & Advances

Loan Book 44,206 46,704

Other current assets and advances 15,970 8,772

Less: Current liabilities and provisions 4,029 4,681

Net current assets 56,146 50,795

Total 56,775 52,179

All figures are in Rs. mn unless specified

Corporate Presentation – Q2 FY12 1717117

THANK YOUFuture Capital HoldingsIndia Bulls Finance CentreTower II, 15th FloorSenapati Bapat MargElphinston (West)Mumbai 400 013

Websitewww.futurecapital.in

E-mailInvestor Relations - Investor.relations@fch.in

Telephone+91 22 40423400

Corporate Presentation – Q2 FY12 18

Mr. V. Vaidyanathan is the Chairman and Managing Director of Future Capital Holdings (FCH). FCH isa leading player in financing Micro, Small and Medium enterprises. (MSMEs) and is listed on NSE andBSE. The company also provides Gold loans, Two Wheeler loans, Consumer Durable loans, WealthManagement and Broking, and uses cutting edge technologies in on-boarding and customer lifecyclemanagement. Recently, Warburg Pincus, one of the worlds most reputed Private Equity players, withfunds of over US$ 40 billion in 36 countries, has acquired a majority stake in FCH. The Fund calledWP XI promoted by Warburg Pincus, the investor in FCH, has committed capital of USD 5.1 Billion.

Prior to this, he was the Managing Director and CEO of ICICI Prudential Life Insurance CompanyLimited. He was earlier appointed Executive Director on the Board of ICICI Bank at the age of 38. Hewas also the Chairman of ICICI Home Finance Co. Ltd, and served on the Board of ICICI LombardGeneral Insurance Company and CIBIL, India’s first credit bureau. He worked with Citibank ConsumerBanking from 1990 to 2000.

Setting up the ICICI Bank’s Retail Banking Business since its inception in 2000 and managing it till2009 is the most significant highlight of his career. He also built the SME business and Rural BankingBusiness for the bank. His contribution includes building a network of 1400 Retail branches in 800cities, with a team of 26000 people, building a vast deposit base, a franchise of 25 millioncustomers, and built a loan book of USD 30 billion in Mortgages, Auto and Consumer loans and tookICICI Bank to market leadership. The Retail banking Business was a key driver to help transition ICICIfrom a Domestic Financial Institution in the ‘90s to a Commercial Bank.

Over the years, his contribution won him many domestic and international awards including BestRetail bank in Asia 2001, “Excellence in Retail Banking Award” 2002, Best Retail Bank in India2003, 2004, and 2005 from the Asian Banker, “Most Innovative Bank” 2007, and was nominated“Retail Banker of the Year” by EFMA Europe for 2008. He is an alumnus of Birla Institute ofTechnology and Harvard Business School. He is a regular marathoner and has run 7 marathons. Helives in Mumbai with his family of father, wife and three children.