SHRIRAM CITY UNION FINANCE LIMITED

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Corporate Profile

May, 2012

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SHRIRAM GROUP HOLDING STRUCTUREShriram Capital Ltd.,

Shriram Holdings

(madras) Pvt Ltd

Shriram Transport

Finance Co. Ltd.,

51%

41%

Shriram Retail Holdings Pvt Ltd

Shriram Enterprise

Holdings Pvt Ltd

Shriram City Union Finance Ltd

55%

100%

17%

34%

Shriram Credit Co. Ltd.,

Shriram Life

Insurance Co. Ltd.,

Shriram General

Insurance Co. Ltd.,

Shriram Chits

Shriram Insight Share Brokers Ltd.,

Shriram Fortune

Solutions Ltd.,

Shriram Wealth

Advisors Ltd.,

87%

90%

99%

100%

74%74%

Bharat Re-

Insurance Brokers Pvt Ltd.,

67%

Shriram Overseas Investments.,

92%

Bharat Investments Pte Ltd. Singapore

82%

Overseas Insurance Ventures

4%

Shriram Housing Finance Ltd

77.25%

100%

Shriram Equipment

Finance Co. Ltd.,

Shriram Auto mall

Corporate Profile

1 Corporate history and Company overview

2 Financial performance over the years

3 Unique positioning and analysis

4 Future growth

3

Company Overview

4

ShriramCity – Company Overview

ShriramCity is a major organized lender in

the Retail and Micro & small enterprises

credit space with leading market share in the

southern region.

Strategically present in multiple

products, with expertise in loan

origination, valuation and collection.

Unique access on Shriram Eco-system, viz.

Shriram Chits and Shriram Transport, which

provide a massive infrastructure, built over

time to ensure better financial productivity.

Large customer base of 6.5 million and

growing everyday.

Eminent Board and experienced management

team.

Listed on National Stock Exchange and

Bombay Stock Exchange

Capital infusion by pedigree investors – ICICI

Ventures, Bessemer and Chrys Capital and

TPG

Large distribution network and AUM

Pan India presence through a network of over

1000 business outlets

Over 10000+ dedicated workforce

Total AUM of Rs. 134.31 billion as at Mar

2012

Company overview

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Corporate History

ShriramCity was established

2005

1st preferential Allotment of equity shares to PE Investors @ Rs. 160/- per share

1986

Focus on Retail Financing

Listed on National Stock Exchange

2006

2nd preferential Allotment of equity shares toPrivate Equity Investors @ Rs. 400/- per share.TPG invests in the holding Company

2008

2010

ShriramCity’s Net Worth touches Rs.1000 Crore

2007

Launches – Small Enterprises

Finance

Launches Loan Against gold

2003 Listed on Bombay Stock Exchange

Launches Shriram Housing – 100%Subsidiary

2011

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Strong Business Model

Retail and Small Enterprises Finance financing Model

Small Enterprises

FinanceRetail Loans

Personal LoansTwo wheeler

LoansAuto Loans

Localized

Presence

Field force drawn locally

Advantage of domain knowledge & personal knowledge of the customers

Quick Credit

Approvals

Centralized broad policy formulation; Decentralized decision making authority

Speedy approvals - superior turn around time in loan processing

Collection /

Recovery skills

Credit team responsible for monitoring early warning signals

Deal originators being responsible for the portfolio quality

No outsourcing

Focus Market 80% of the branch network focuses on rural and semi - urban areas

Pan India presence with an existing concentration in South India; expanding into other geographies

Origination & credit evaluation through own team

Loan against gold

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Performance Track Record

Total Income (Rs. Mns) Net profit (Rs. Mns)

Earnings Per Share (Rs.) Book value per share (Rs.)

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FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

3,490 6,232

9,339 11,028

13,209

20,524

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

516 876

1,170

1,943

2,405

3,425

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

16 22 26

41 49

69

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

83 104

155 203

245

334

Superior Return on Networth

Net worth (Rs. Mns)

Return on Equity (%) Capital Adequacy ( % )

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23.97%

22.86%

20.47%

22.73%

21.75%

23.14%

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

23.95%

20.25%

25.74% 26.28%

20.52%

17.40%

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

3,257

4,265

7,097

10,000

12,121

17,482

Growth in AUM with Low NPAs

AUM (Rs Mns)

NPA levels

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FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

25,069 33,689

46,295 52,155

79,980

134,310

2.30%

1.52%

2.07%2.27%

1.86%

1.55%

1.47%

0.90% 0.96%0.71%

0.43% 0.38%

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

GNPA NNPA

Strengths of ShriramCity

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Why ShriramCity

Diversified Product Portfolio

Seasoned Credit Policy & Process

Healthy Asset Quality & strong profitability

1

3

2

4

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Strong management backed by eminent board

Has attracted Quality Investors

5 Optimum borrowing mix

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Sound risk management systems

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1. Diversified Product Portfolio

A Balanced Mix of High Yield and Low Risk Portfolio

Split of AUM – Rs 134.31 billion*

Small Enterprises Finance-

Commenced in Dec 2005

Key financials

Average Tenor: 36 Months

Average Yield: 22 – 24%

Retail Loans

Personal Loans

Commenced in Jan 2006

Key financials

Average Tenor : 30 Months

Average Yield: 24 – 27%

Two Wheelers

Commenced in Dec 2002

Key financials

Average Tenor: 24 Months

Average Yield: 24 – 26%

Auto Loans

Commenced in Dec 2005

Key financials

Average Tenor : 30 months

Average Yield: 22 – 24%

18% 12% 6%

29%

Loan Against Gold

Commenced in Oct 2006

Key financials)

Average Tenor : 4 Months

Average Yield: 18- 20%

35%

* As at Mar 2012

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2 Seasoned Credit Policy & Process

Credit team

responsible for

monitoring early

warning signals

Proprietary

integrated ERP –

Linking business from

the origination point

to the final accounts Average LTV lower/ equal to

the industry average

Immovable assets & personal

guarantees as collateral for

personal & Small Enterprises

Finance

Centralized broad policy formulation

Decentralized decision making authority

Speedy approvals -

superior turn

around time in loan

processing

Pre lending Field

Investigation (FI)

& the post lending

appraisal by

dedicated teams

Origination & credit

evaluation through own team

Deal originators being

responsible for the portfolio

quality

Systematized

Controls Loan to

Value (LTV)

Quick

Credit

Approvals

FI &

Post Lending

Verification

“No

Outsourcing

” Policy

Credit

policy &

process

Assigning

Responsibility

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3 Healthy Asset Quality

Enables decentralized decision making

Ensures quick turn around time

Systematized controls

Well defined incentive plan for field

officers to ensure low default rates

50% of the compensation is by way of

performance based incentives.

Deal originators being responsible for

monitoring early warning signals

Customized repayment structures

Localized presence – field force being

drawn locally.

Prudent Credit norms

Reasons for Low Delinquency

Incentive Schemes

Asset Quality

Asset Coverage Ratio

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2.30%

1.52%

2.07%2.27%

1.86%

1.55%

1.47%

0.90% 0.96%

0.71%

0.43% 0.38%

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

GNPA NNPA

37%41%

54%

69%74% 76%

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

…and Strong Profitability

Spread Analysis FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Interest from Financing

Operations / Average AUM 18.0% 18.0% 20.8% 23.1% 21.8% 19.9% 19.0%

Interest Expenses^ /

Average AUM 8.9% 7.1% 8.5% 10.8% 9.4% 7.8% 8.1%

Gross Spread 9.1% 10.9% 12.3% 12.3% 12.4% 12.2% 10.9%

OPEX / Average AUM 4.0% 6.1% 6.6% 6.2% 4.8% 5.0% 4.6%

Provisions & Write offs **/

Average AUM 1.5% 1.3% 1.7% 1.9% 2.4% 1.8% 1.7%

Net Spread 3.6% 3.5% 3.9% 4.2% 5.2% 5.4% 4.7%

^ Interest expenses includes only the Financial expenses.

**Provisions include the standard assets provisioning @ 0.25%

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Has attracted Strong Interest from Quality Investors

Consistent track record and high

growth potential has attracted reputed

institutional and Private Equity

investors to infuse growth capital

Details of Shares capital issues

Asia Bridge - Invested in May ‘08 @ Rs. 400/- per share [0.58 mn shares]

Bessemer Venture partners - Invested in May ‘08 @ Rs. 400/- per share [1.25 mn shares]

Chrys Capital - Dec ’06 @ Rs.160/-and May ‘08 @ Rs. 400/- per share. [6.625 mn shares in total]

ICICI Ventures - Invested in May ‘08 –Rs. 400/- per share [0.75 mn shares]

Norwest Venture Partners - July ‘09 –Secondary Market Purchase

Capital Adequacy ratio as of Mar 2012:

16.92%

*Share holding pattern is as at 31st Mar 2012

^TPG has stake in Shriram Retail Holdings

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Key Shareholder* Shareholdings

(Millions)

Shareholding)(

%)

Shriram Enterprise Holdings 17.92 34.22%

Shriram Retail Holdings^ 8.56 16.34%

Shriram Capital Ltd., 2.30 4.39%

Norwest Venture Partners 4.34 8.29%

Van Gogh Ltd. (Chrys Capital) 6.63 12.65%

Bessemer Venture Partners 2.50 4.77%

Asiabridge Fund I LLC 1.18 2.24%

Acacia Partners LP 1.56 2.97%

Acacia Institutional Partners 0.54 1.04%

India Advantage Fund VI (ICICI

Ventures) 3.70 7.07%

Others 3.15 6.01%

Total 52.37

Optimum Borrowing Mix

Segment FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Total Borrowings 8,652 15,224 29,992 43,228 46,671 73,278 96,226

Retail Borrowings

(incl Public issue of

NCD) 81.1% 54.4% 32.4% 33.0% 40.1% 28.5% 35.7%

Institutional Borrowings 18.9% 45.6% 64.9% 60.8% 55.6% 59.6% 54.3%

Market Borrowings - - 2.7% 6.2% 4.3% 11.9% 10.0%

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(Rs. Mns)

Borrowing Pattern

March 2012 Borrowing %

Weighted

Average Tenor

Total Borrowings 96,226 30.76

Fixed Rate Borrowings 58% 38.03

Floating Rate Borrowings 42% 19.26

Segment wise Borrowings as at 31st Mar 2012

Long Term Rating of “AA “ by CARE and “AA-” by Fitch & Crisil.

Highest rating in Short term by all three rating agencies

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Retail NCD

21%

Retail Sub Debt

6%

Public Issue NCD

8%Utilised Cash

Credit Limits

13%

Term Loans O/s

42%

Inst

Sub Debt

2%

Inst NCD

8%

Optimum Borrowing Mix

Each product is an exclusive vertical, headed by a product head

Strong Management Team6

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Board of Directors

Managing Director

Mr. R. Duruvasan

Chief Operating

Officer-

Mr. Y.S. Chakravarti

Chief Technical &

Accounts Officer -

Mr. R. Chandrasekkar

Chief Financial

Officer-

Ms. Subhasri Sriram

Product Management

Credit

Legal Recovery

Market

AnalysisAccounts & Audit

Information

Technology

&

Innovation

Management

Information

System

Back Office Administration

Strategic Planning & Risk

Management

Finance

Talent Engagement &

Development

Investor Relations

Internal

Audit

Type of Risk ShriramCity Model

Concentration Risk Multiple products ensure risk diversification.

optimum mix of retail & institutional borrowings

Interest Rate Risk Balanced mix of fixed / floating rate loans.

Loan assets are at Fixed rates and the borrowings are an equal mix of

fixed and floaters

The entire retail liability are all at fixed rates with the average balance

maturity of approx. 30 months.

Liquidity Risk Adequate liquidity back up in the form of unutilized working capital

limits, fixed deposits with banks.

Continues to maintain liquidity support by having cash credit limits

which are not being fully utilized.

ALM Risk Positive cumulative mismatch in all the buckets – assets being of short

tenors (average 15 months) and borrowings of longer tenors (30

months)

Sound Risk Management Systems7

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Strategy for future growth

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Product Expansion – Small Enterprises Finance

Financial inclusion has become a national and a government imperative in the last few years.. Many

believe that fastest and most efficient way to ensure economic development of financially excluded is by

improving the bankability and thereby competitiveness of Micro, Small & Medium Businesses (MSMEs)

MSMEs – Some statistics

Constituting around 26 million units

Contributes to 45% of industrial output

40% of exports are from MSMEs

Employs 60 million people

Creates 1.3 million jobs every year

Lending is largely addressed by unorganized

sector

Expertise of Shriram Group

Localized presence - loans are to be processed

and delivered at the customers doorsteps

Ability to understand the customer’s business

model and provide tailor made loans

Lending to this segment, cannot be based purely

on collaterals - this is where ShriramCity scores

over competition

Shriram Chits has years of expertise in this

segment. We have an extensive borrower

database of Shriram Chits – which is combined

with our own borrower database

Gives us an edge over competition in assessing

customers’ requirements and ability to repay the

loan

Shriram City is the India’s largest Small Enterprises Finance Company

(as per Frost & Sullivan – Analysis of MSME Loan Market for NBFC in India- July 2011)

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Currently 29% of SCUF’s loan portfolio

is towards MSME loans

Shriram Housing Finance Limited

Shriram Housing Finance Limited(SHFL), promoted by Shriram City in November 2010 as a fully owned

subsidiary and commenced operations by December 2011 after being registered with the National Housing Bank

as a Housing Finance Company

In March 2012, Valiant Mauritius Partners FDI Limited signed the agreement to pick up effective 22.75% stake

in Shriram Housing.

The deal envisages a cumulative investment of Rs. 1705 million by Valiant and Rs. 1654 Million by Shriram

City. The infusion by Shriram City will be at Rs 10/share and that of Valiant will be at Rs.35/share in all

tranches.

The investment in SHFL by Shriram City and Valiant (which shall be simultaneous) shall be in three

tranches, with the first tranche of investment being completed in April 2012. In April 2012, Valiant invested Rs.

752.5 million & Shriram City invested Rs. 700 million (inclusive of the Rs. 148 million invested as at 31st

March 2012)

Post-money equity valuation of Shriram Housing is expected to be Rs. 7496 Million excluding the possible

accruals of profits in this period.

Shriram Housing Finance Limited(SHFL), during the year ended 31st March 2012, has been operating out of 31

branches across India and had sanctioned loans of Rs. 167 million.

The Company as at March 2012, had a equity share capital of Rs. 148 million and incurred a loss of Rs. 44.5 million

which is inclusive of the pre- operative expenses of Rs.15.6 million.24

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Disclaimer

This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect tothe purchase or sale of any security of Shriram City Union Finance Limited (the “Company”) and no part of it shall form the basisof or be relied upon in connection with any contract or commitment whatsoever. No offering of securities of the Company will bemade except by means of a statutory offering document containing detailed information about the Company.

This presentation is not a complete description of the Company. Certain statements in the presentation contain words or phrasesthat are forward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that couldcause actual results to differ materially from those contemplated by the relevant forward looking statement. Anyopinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurancethat future results or events will be consistent with any such opinion, estimate or projection. The information in this presentationis subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain allmaterial information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise reviseany statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlyingevents, even if the underlying assumptions do not come to fruition.

All information contained in this presentation has been prepared solely by the Company. No information contained herein hasbeen independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is anyresponsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of anyinformation, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Companynor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation orits contents or otherwise arising in connection therewith. This presentation may not beused, reproduced, copied, distributed, shared, or disseminated in any other manner. The distribution of this document in certainjurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselvesabout, and observe, any such restrictions.

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