BSE: 532892 ● NSE: MOTILALOFS ● Bloomberg: MOFS:IN ● Reuters: MOFS.BO ● www.motilaloswal.com

Motilal Oswal Financial Services Ltd

Investor Presentation | Sep 2015

2

Group structure and evolution

• Synopsis

• Business Mix

• Timeline

• How we grow our businesses

• Core management

• Corporate governance

Synopsis

3Data as on Sep 2015# through Motilal Oswal Securities Limited

100%

Motilal Oswal

Securities Ltd.

Institutional Equities

Broking & Distribution

Motilal Oswal

Investment

Advisors Pvt. Ltd.

Investment

Banking

MOPE Investment

Advisors Pvt Ltd.

Private Equity

Real Estate

100% 85% 100% #

Motilal Oswal Financial Services Ltd.

Motilal Oswal

Wealth Management

Ltd.

Wealth

Management

100% #

Motilal Oswal Asset

Management

Co. Ltd.

PMS, MF &

Offshore

Aspire Home

Finance Corporation

Limited

Housing Finance

98.77% #

Motilal Oswal

Commodities Broker

Private Ltd.

Commodity

Broking

100%

● Motilal Oswal Financial Services Ltd (MOFS) is a diversified financial services company across the following businesses:-

o Traditional Capital Markets – Retail Broking & Distribution, Institutional Equities, Wealth Management, Investment Banking

o Asset Management – Public Market Equities and Private Equity

o Home Finance – Affordable Housing Finance

o Fund Based Activities

● Its core-purpose is to enable Wealth Creation for all its clients – retail, HNIs, institutions and corporate. It focuses on its

‘Solid Research Solid Advice’ and ‘Knowledge First’ mantras, to project itself as a knowledge-driven organization

● In terms of size, MOFS serves 870,000+ clients, including 760,000+ retail clients and 580+ institutions. Its Pan-India network

is spread over 2,000+ locations across 600+ cities, including franchisee outlets and own branches

● As of Sep 2015, the net worth was `13.9 billion, gross debt was `15.8 billion and market capitalization was `41.7 billion

Mix of capital markets, annuity and linear businesses

Aspire Home Finance (Affordable

Housing Finance)

Asset Management (PMS)

Asset Management (Mutual Funds)

Private Equity (Real Estate)

Private Wealth Management

Retail Broking & Distribution

Institutional Equities

Investment Banking (M&A Advisory)

Investment Banking (Equity Capital

Markets)

4

Mature businesses

Recentbusinesses

Housing finance

Asset management

Traditional capital markets

Asset Management (Offshore)

New businesses

**Lending against Securities is run only as a support to the Broking business. It is not run as a separate business vertical from operations perspective

Private Equity (Growth Capital)

Fund based (capital allocation)

Lending against Securities

(NBFC Loan Book)**

Sponsor Commitments (to own MFs & PE funds)

Capital allocation (Aspire Housing Finance)

Timeline

5

Retail Broking

Institutional Equities

PMS

Distribution

Wealth Management

Private Equity

Investment Banking

Lending (LAS)

Mutual Funds

Housing Finance

1987 - 95

2006 - 2007

1996 - 2005

2014

2010

From a pure Brokerage to a Diversified Financial Services enterprise…

…to build a flexible, respected

and creative enterprise

How we grow our businesses

6

…by focusing on…

• Power of Entrepreneurship

• Long-term value creation

• Customer-centric approach

• Sustained competitive advantages

• Systems and process

• Ethics and integrity

• Judicious use of capital and resources

We nurture our businesses,

from birth to bloom…

…by focusing on…

Core management

7

Business Leadership

Support Leadership

Motilal OswalChairman Raamdeo AgarawalJt. Managing Director Navin AgarwalManaging Director

Senior Leadership

Vijay Kumar GoelWealth Management

Vishal TulsyanPrivate EquityAashish Somaiyaa Asset Management

Anil SachidanandHousing Finance

Rajat RajgarhiaInstitutional Equities

Ajay Menon

& Nikhil Daxini

Retail Broking &

Distribution

Ashutosh Maheshvari

& Girish NadkarniInvestment Banking

Ramnik ChhabraMarketingSameer KamathGroup CFO Sudhir DharHuman Resources

Corporate governance

● MOFSL is committed to ensuring compliance with

the best practices in corporate governance

● Composition of MOFSL’s Board of Directors:

o The Board currently consists of6Directors with

50% composition of Independent Directors

(3 Independent and 3 Non Independent)

● MOFSL has some major Board level Committees :

o Audit Committee

o Stakeholders Relationship Committee

o Nomination and Remuneration/Compensation

Committee

o Corporate Social Responsibility Committee;

o Risk Management Committee

o Asset Liability Management Committee

o ESOP Committee

o Debenture Committee

8

Independent Directors

• Mr Praveen Tripathi is the CEO of Magic9 Media & Consumer

Knowledge Pvt Ltd. He is the Chairman of the National Consumer

Classification System Committee and has also worked with

Pidilite, Hansa Consulting, Zenithmedia, Starcom/Leo Burnett etc

• Mr Vivek Paranjpe is an HR consultant with companies like

Reliance Industries, Blackstone etc. Prior to this, he was the

Director, HR Operations at HP Singapore, and has also worked

with Hotel Corp, Johnson & Johnson, Hindustan Lever etc

• Ms Sharda Agarwal co-founded a strategy marketing consulting

firm in 2005 where she consulted 100+ companies in ~175

assignments. She also set up a consulting oriented market

research firm ‘Market Gate Dimensions’ in 2011

• Ms Rekha Shah is the founder of Analyze N Control, which

provides solutions to capital markets. Prior to this, she had 16

years experience in capital markets in the manufacturing and

financial sector. She did her Business Management from

Jamnalal Bajaj Institute of Management Studies, Mumbai

Independent Directors – Motilal Oswal Financial Services LtdBoard & Committees

Independent Director – Motilal Oswal Securities Ltd

Data as on Sep 2015

9

Businesses and Strategy

• Broad progress against strategic priorities

• Concentrating on Scale, Efficiencies, Competitiveness

• Traditional capital markets

o Retail Broking: Time-tested model poised for scale

o Institutional Equities: Preferred broker across client segments

o Private Wealth: Deepening client relationships with advisory

o Investment Banking: Focusing on emerging opportunities

• Asset management

o Asset Management: Set to be a significant growth-driver

o Private Equity: Demonstrated track-record

• Housing finance

o Aspire Home Finance: Building a linear, high ROE business

• Fund based activities

Broad progress against strategic priorities

10

● Traditional Capital Markets

o Broking and Distribution: Building scale by leveraging on

advisory, network expansion and technology

o Institutional Equities: Pitch research as a USP; Use corporate

access and sales to build strong relationships

o Wealth Management: Customized advisory for holistic asset

allocation; Leverage strong relationships with HNIs

o Investment Banking: Leverage on emerging capital raising

opportunities by partnering as a ‘strategic CFO’

● Asset Management

o Public Equities AMC: Pitch as equity specialists with time-

tested investing philosophy; Expanding the distribution base

o Private Equity: Capture fundamentally-strong, high-quality and

high-growth deal opportunities

● Housing Finance

o Aspire Home Finance: Focus on affordable housing segment

● Fund based

o ROE Enhancing Opportunities through commitment to own

asset management products; NBFC book run with borrowings

Active participation in few IPOs

Superior investment performance; Uptick in market share of net sales and creation of new folios

Expanded coverage into new corporates/geographies

Improvement in retail cash market share

Traction in HNI client families and asset flows

Traction in Aspire’s book, clients & geographies

Sponsor backing of proven track-record of investing philosophy

2 partial exits from IBEF 1; Final close of IREF II

Concentrating on Scale, Efficiencies, Competitiveness

11

BUSINESS STRATEGY

Operational excellence in housing finance

● Focus on operations, technology, underwriting,

risk management, as much as scale & productivity

Investments aligned to capital market client segments

● Digital models for ‘next-generation’ retail clients

● Dedicated advisory desks for large clients

● Offline reach into high-potential geographies

● Institutional base where India is relatively attractive

● Expanding in family offices to cater to more HNIs

Track-record and B2B network in AMC products

● Products based on time-tested investment

philosophy delivered superior outperformance

● Building relationships with key distributors

GROUP STRATEGY

Strategically realigned our business model

● Annuity-based AMC and PE businesses , linear housing

finance business and capital allocation are

complementing the capital markets businesses

● Will offer significant profit potential, going forward

Using capital judiciously with focus on productivity

● Aimed to maximize throughput on investments

● Will help drive the next phase of growth

Building Scale, Efficiencies, Competitiveness

● Focus on operational processes for efficiencies

● Competitive positioning to stay ahead of the curve

● Adding scale via manpower, technology and reach

Retail Broking: Time-tested model poised for scale

12

‘Knowledge’ as a differentiator

● Simplified research customized for retail

● Dedicated advisory-desk per client-type

● Certification/tests for advisor quality

● Investor education seminars/trainings

Portfolio product-based approach

● Equity strategies are packaged into

portfolio products for clients

● System-driven trading products

developed in-house

‘Partnering For Growth’ Franchisee Model

● Leveraging entrepreneurial talent to

expand across the hinterland

● Several franchisee partners have grown

manifold in their scale of business

Profile-based advisory

● Targeted advisory based on profile/habits

● Disciplined trading system classifies stock

ideas as per different categories

Cross-selling of products

● Offering a bouquet of products to

deepen the client engagement:-

● Equity broking

● Commodity broking

● Currency trading

● Mutual Funds

● Bonds

● Insurance

Leveraging on Technology

● Revamping Digital initiatives across delivery

& engagement touch-points

● Helps reduce the cost of servicing and

enables clients to engage as per convenience

3,8873,199

1,833

H1FY16FY15FY14

Monthly runrate in retail client addition

Retail Broking: Investments leading to business results

Traction in Client Addition

● Retail client base of over ~760,000

● Strong run-rate in client addition,

since the last five successive quarters

● Online business also gaining traction

● Uptick in re-activation initiatives

Traction in Performance Metrics

● Improved the retail cash market share &

the client-activation ratio this year

● Expanding the reach with own-branches

in large geographies & with franchisees in

the hinterland

● Stress is on outlet quality, not quantity

Solid Endorsement

● Best Performing National Financial

Advisor – Equity Broker at the UTI-

CNBC TV18 Financial Advisor

Awards for 4 years in a row

● `Best Broking House - Cash

Segment` at Dun & Bradstreet

Equity Broking Awards 2015

2X vs. FY14 average

1.2X vs. FY15 average

1,579 1,484 1,5341,743

2,036

552 527 507 520

637

FY12 FY13 FY14 FY15 Q2FY16

Business Location No of cities

13

Institutional Equities: Preferred broker across client segments

14

Award-

winning

Research

Timely

Execution

Support

Engaging

Corporate

Access

Best in Class

Institutional

Broking

●Research covers economic,

sector, company and

thematic reports

●Coverage ramped up from

~200 to 230+ companies

since the last year

● Strong focus placed on

thematic research offerings

● Large team of 30+ analysts

●Client count reached 586

institutions

● Both FII and DII clients

empanelled since last year

● Invested into execution

capabilities like Blocks, DMA

& Smart Order Routing

● Invested into trading

segments like Algos/Quants

●Multiple outreach formats

to meet management,

government & experts

●Traction in analyst and

corporate roadshows in

FY15, across regions

●Annual Global Investor

Conference is one of the

largest format events in this

segment. The 2015 event

saw 4,000+ corporate –

investor meetings

● ‘Best Broking House -

Institutional Segment` at D&B

Equity Broking Awards 2015

●Best Local Brokerage (India)

for trading & execution by

Trade Asia Poll 2014

●Ranked 2 in Best Local

Brokerage, Best Overall Sales

Service, Best for Events & 3 in

Best for Most Independent

Research Brokerage in the

AsiaMoney Brokers Poll 2012

Institutional Equities: Deepening USP in research & outreach

15

Thematic research Sector research Company researchNew products Corporate access connect

Research and events require holistic engagement with institutional investors, corporates and industry experts …

● Wealth management AUM stood at ~`50.3 billion as of Sep 2015, a growth of 59% on a YoY basis

● The business has turned significantly profitable last year

Private Wealth: Deepening client relationships with advisory

• Tailor Structures

• Relationship

Measurement

• Personalized

Investment Strategies

Customized Financial

Strategy

• Investment Banking

Services

• Institutional Research

• Credit Solutions

Privileged Access to

Institutional Capabilities

• Investment Advisory

Committee

• Product Due Diligence

• Adherence to your risk

profile

Strong Risk

Management

• Multi Platform

Monitoring &

Transactions

• Institutional Approach

to Client Servicing

Exceptional Client

Experience

• Global Concierge

Services

• Premium Lifestyle

Memberships

• Travel Services

Relationship Benefits

16

● Expanding Coverage:-

o 64 Sales people on-board as of Sep, up 35% YoY

o Presence expanded to 8 metro cities to capitalize on the

ensuing growth prospects there

o Open-architecture platform provides the products which

are best suited for our clients’ interests

● Client-centric Focus-

o Building a strong Family Office offering, to cater to

further HNI clientele through this model

o Investing into providing a seamless execution platform

o Deepening relationships by supporting clients through

life events, especially younger-age clientele

Our Value Proposition – From personalized advice to exceptional experience

Investment Banking: Focusing on emerging opportunities

● Strength in M&A Financial Advisory; Deal pipeline remains healthy with transactions at various stages of completion

● Invested into an experienced ECM team to capitalize on the emerging opportunities in equity raisings, and some traction has

already been seen in the IPO segment this year with the Pennar, Powermech and Parag IPOs

● Extensive relationships with PE funds for Private Equity Syndication

● Tied up with IMAP Inc., a global provider of M&A services. This will allow it to undertake transactions across 30+ countries

● Won ‘M&A Boutique Firm of the Year’ award at the M&A Atlas Awards

Sample transactions across segments…

17

Asset Management: Set to be a significant growth-driver

Putting the Building-Blocks in place…

Solid Investing Philosophy

Q.G.L.P. investment

framework helped us

identify multibaggers

Cracking new distributors

across channels like banks,

wealth firms, IFAs & NDs

MOAMC now ranks #14

in the industry, up from

#18 in Mar 2014

Increase in the market

share of incremental

equity inflows

Buy and hold value

investing philosophy

MF Investment

performance getting

mentions in the media

Value PMS seen 27%

CAGR in last 13 years, 9%

higher than its benchmark

18

Empanelled distributors

are up 55% YoY

Time-tested Track-Record Distributor Relationships

Deepening relationships

with existing distributors

to maximize the share

Building relationships with

offshore institutions for

the new offshore fund

Concentrated portfolio

to reduce risk of

excessive diversification

NTDOP seen 18.5% CAGR

since 2007, 13% higher

than its benchmark

Measurable Results

Feature-rich online

platform adds convenience

to the Direct channel

Equity MF Folios are

up ~4X YoY

Asset Management: Equity specialists

Portfolio Management Services (PMS)

● The flagship Value PMS is our largest scheme and it

focuses on high-potential large-caps

● NTDOP PMS (Next Trillion Dollar Opportunity) looks at

high-potential midcaps

● As per SEBI, PMS had a market share of 8% within

discretionary-listed equity PMS space, as of Aug 2011

Offshore

● Motilal Oswal Asset Management (Mauritius) Pvt Ltd

incorporated in Mauritius to manage the India Zen Fund

Mutual Funds (MFs)

● Focused 25 Fund invests as per QGLP in largecaps

● Focused Midcap 30 invests as per QGLP in midcaps

● Focused Multicap 35 invests as per QGLP across market cap

● MOSt Focused Long Term combines QGLP with tax savings

● MOSt 10 Year Gilt Fund provides access to 10 Year G-Sec

● MOSt Ultra Short Term Bond Fund invests in debt market

Mutual Funds (ETFs)

● MOSt Shares M50 is based on NSE Nifty

● MOSt Shares Midcap 100 is based on CNX Nifty

● MOSt Shares Nasdaq 100 is India’s 1st US equities ETF

19

21.5

4.7

Q2FY16Q2FY15

Net Inflows into MF/PMS (Rs Bn)

4.5X

43.1

12.8

48.3

21.6

Q2FY16Q2FY15

MF AUM (Rs Bn)

PMS AUM (Rs Bn)

34.4

91.4

165%

Private Equity: Demonstrated track-record

20

Investment manager and advisor to private equity funds, and acts as an advisor and mentor to investee companies…

IBEF 1: $125 million invested in 13 cos. 2 investments are fully exited and 4 are partially exited,

translating to ~78% capital returned (INR terms). It is in advanced stages for exits, which may translate

to an additional ~32% capital returned, taking total capital returned to ~110%. It is likely to exit by

FY17 and we are hoping to earn meaningful carry as well as profits on Sponsor commitments in FY17.

IREF 1: `2 billion AUA in 7 deals, of which full/partial exits have been done from 6 projects so far,

translating into ~82% capital returned to investors

Funds in

Exit mode

Funds in

Investing mode

Fund in

Approval mode

IBEF 2: `9.5 billion raised, including commitments from marquee institutions like IFC Washington,

Squadron Capital and Axiom. It has made 7 investments so far - Magicrete, Intec Capital, Shubham

HFC, Glass Wall Systems, Arinna Lifesciences, IKF Finance and Kurlon

IREF 2: `5 billion commitments raised post final close. Commitments of ~80% have been made across

established developers across 6 deals, following stringent due diligence process

IREF 3: IREF 3 to be launched during FY16, for which the regulatory approval is expected very soon

Aspire Home Finance: Building a linear, high ROE business

● As of Sep 2015, equity commitment of `2

billion with a Debt:Equity ratio of 4X

● Distribution reach expanded to 37 branches

across Maharashtra, Gujarat, MP & Telangana

● As much focus on underwriting, file audit & risk

management, as on scale and productivity

● Technology implemented at each stage of the

loan approval process to reduce TATs

● Sanctioned credit lines of `14.1 billion

● Launched Aspire Insurance Services offering

life/non-life insurance; Aspire Property Services

& Aspire Technical Services to offer its domain

expertise in the housing industry

21

● Cumulative disbursement of `10 billion in 5 quarters

● Loan book at `9.9 billion, across ~9,700 families

● Q2FY16 disbursement was 2X of Q1FY16 and

Q4FY15, each

● As of Sep, NIM of ~300 bps, GNPL of 0.04%, Cost to

income ratio of 39%, ROA of ~3.8% & ROE of ~14%

● Relentless focus into operational excellence helped

get ratings of ‘CRISIL A+/Stable’ & ‘ICRA A+(Positive),

despite the relative lack of vintage

● ‘Most Admired and Valuable Housing Finance

Company’ at 6th India Leadership Conclave 2015

● Positive PAT in the first year of operations

What we achieved…What we did…

Fund based activities focusing on enhancing Return on Equity

22

In line with the long term strategy to grow RoE sustainably to 20%+, MOFSL has made strategic allocation of capital to long term

RoE enhancing opportunities like Aspire Home Finance, sponsor commitments to existing mutual fund and private equity funds

of MOFSL group and utilizing borrowings to run the NBFC loan book (as spread business):

Sponsor Commitments:

• As of Sep 2015, our investments in Motilal Oswal’s mutual fund products stood at `5.7 billion and the unrealized gain on

these investments was `1.7 billion (vs. `1.8 billion as of Jun 2015). The same is not reflected in the profit and loss account for

the year. By changing the allocation we have ensured that erstwhile deployment from low RoE cash future arbitrage

opportunities into opportunities to earn 20%+ RoE

• Our investments in Motilal Oswal’s alternative investment products (private equity and real estate funds) stands at `1.7

billion as of Jun 2015

NBFC Business:

• NBFC loan book was `3.3 billion

• The NBFC lending business of LAS, earlier done from equity capital, is now being run as a spread business. In line with this,

MOFSL has raised long-term NCDs of `1.5 billion at annualized cost of 10.05% (payable annually)

• Total borrowings in MOFSL (ex Aspire) was `7.3 billion as of Sep 2015. This resulted in incremental interest cost (ex Aspire) of

approx `6.0 million as compared to previous quarter and `111.7 million as compared to same quarter of last year

23

Financial performance

• Latest quarter performance

• New drivers for topline and profit growth

• Annual financial performance

• Balance sheet

• Recent awards

Latest quarter performance

24

Particulars Q2 FY16 Q1 FY16 Q2 FY16 Q2 FY15 6M FY16 6M FY15 FY15

`million Sep 30,

2015

Jun 30,

2015

Sep 30,

2015

Sep 30,

2014

Sep 30,

2015

Sep 30,

2014

Mar 31,

2015 Brokerage & operating income 1,314 1,160 13% 1,314 1,184 11% 2,474 2,346 5% 4843

Investment banking fees 73 49 49% 73 6 1093% 122 86 42% 193

Asset management fees 575 403 43% 575 214 169% 978 395 147% 1266

Fund based Income 261 285 -8% 261 338 -23% 546 566 -4% 1147

Housing finance related 457 207 121% 457 24 1787% 664 27 2321% 239

Other income 11 13 -17% 11 19 -42% 25 41 -40% 62

Total Revenues 2,691 2,116 27% 2,691 1,786 51% 4,808 3,462 39% 7750

Operating expenses 656 474 38% 656 462 42% 1,130 924 22% 1945

Personnel costs 574 582 -2% 574 384 50% 1,156 758 52% 1897

Other costs 420 363 16% 420 363 16% 783 625 25% 1313

Depreciation 83 76 9% 83 71 18% 160 138 16% 307

Interest 368 226 62% 368 29 1154% 594 68 771% 309

PBT 590 394 50% 590 477 24% 984 948 4% 1979

Tax 150 104 44% 150 143 5% 255 290 -12% 523

Minority Interest 6 6 8% 6 7 -15% 12 11 4% 20

Reported PAT 434 284 53% 434 327 33% 718 647 11% 1,436

EPS - Basic 3.1 2.0 3.1 2.4 0.5 0.5 1.0

EPS - Diluted 3.0 2.0 3.0 2.4 0.5 0.5 1.0

No.of shares outstanding

(million) - FV Rs 1/share142 141 142 139 142 139 140

Operating costs% 24% 22% 24% 26% 24% 27% 25%Personnel costs% 21% 28% 21% 21% 24% 22% 24%Other costs% 16% 17% 16% 20% 16% 18% 17%Reported PAT% 16% 13% 16% 18% 15% 19% 19%

Change

(%)

Y-o-Y

Change

(%)

Q-o-Q

Change

(%)

Y-o-Y

New drivers for topline and profit growth

25

Incremental revenues coming from AMC and HFC on a YoY basis

1,786

2,668

Q2 FY15 Broking &Related

IB Fee

AMC Fee (incl PE)

Fund based Inc

HFCrelated

OtherIncome

Q2 FY16

129

361

67

(8)

(77)

433

Change in the revenue mix towards annuity and linear businesses

1% 10%19%

17%1%

21%12%

3%

0%

49%66%

Q2 FY16Q2 FY15

Broking & Related

IB Fee

AMC Fee (incl PE)

HFC related

Fund based Inc

Others

4 drivers for future profitability

• During the previous cycle, our growth was driven by only one engine, i.e. the traditional capital market business. That alone

helped us deliver 10x growth in profits through the last cycle

• Now, we have 4 drivers - the traditional capital market business, asset management businesses, housing finance business and

fund based activities; which should help us capture the growth opportunities and thus, improve our profitability and ROE

10,595 11,409

12,179 11,703 12,949

14%9% 9%

3%

12%

FY11 FY12 FY13 FY14 FY15

Adjusted PAT (`million, margin %)EBIDTA (`million, margin %)

Annual financial performance

*Prior figures have been regrouped wherever necessary 26# For FY15; `2 is paid as interim dividend + `1 is proposed dividend• Payout is calculated on Adjusted PAT for the respective years

Consolidated revenues (`million)

Revenue Composition (%)Consistent dividendsNet worth (`million); ROE (%)

0.800.80 1.20

1.401.50

2.00 2.00

3.00

7%

13% 10%

17%

26%

35%

42%

35%

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15#

DPS Payout*

6,008

4,711 4,729 4,681

7,750

FY11 FY12 FY13 FY14 FY15

2,295

1,5851,744

1,422

2,595

38%

34%37%

30%

33%

FY11 FY12 FY13 FY14 FY15

1,353

967 969771

1,436

23%21% 20%

16%19%

FY11 FY12 FY13 FY14 FY15

2% 1% 2% 1% 1%

13% 17% 21% 20% 14%3%7%

11% 13% 16% 16%7%

2%2% 1% 2%

72% 69% 63% 61% 63%

FY11 FY12 FY13 FY14 FY15

Broking & operating income Investment banking fees

Asset management fees Housing Finance

Funds based business Others

Balance sheet

27

`million As on Sep 30,

2015

As on Mar 31,

2015

Sources of Funds

Networth 13,914 12,949

Loan funds 15,754 7,856

Minority interest 100 63

Deferred tax liability 81 120

Total 29,849 20,988

Application of Funds

Fixed assets (net block) 2,977 3,001

Investments 11,895 8,140

Deferred tax asset - -

Current Assets (A) 24,800 18,307

- Sundry debtors 7,301 5,900

- Stock-in-trade 0 0

- Cash & Bank Balances 3,112 2,719

- Loans & Advances 13,956 9,605

- Other Assets 431 82

Current liabilities (B) 9,823 8,460

Net current assets (A-B) 14,976 9,847

Total 29,849 20,988

Recent awards

‘Best Capital Markets & Related NBFC’ award at

CNBC TV18 India Best Banks & Financial Institutions

Awards 2011

‘Most Innovative Fund of the Year’ award at the

CNBC TV18-CRISIL Mutual Fund Awards 2011 for the

M-50 ETF

'Best Performing National Financial Advisor Equity Broker' award at

CNBC TV18 Financial Advisor Awards for 4th year in a row

Investment Banking bagged ‘Asia Pacific Cross-Border Deal

of the Year’ and ‘India M&A Investment Banker’ awards

‘Best Equity Broker’ award at Bloomberg UTV

Financial Leadership Awards 2012

Private Equity won ‘Best Growth Capital Investor-

2012’ award at the Awards for PE Excellence 2013

Nasdaq 100 ETF won the ‘Most Innovative ETF Asia

Pacific 2011’ award at the 8th Annual Global ETF Awards

2012 in USA

Adjudged amongst Top 20 innovators in BFSI space at

the Banking Frontiers Finnovity Awards 2012

‘Best Research as Research Showcase Partner’ at Research

Bytes IC Awards 2014

Retail Broking and Distribution, Institutional Equities and Wealth Management

NBFC, Asset Management, Private Equity and Investment Banking

28

CNBC TV18 Financial Advisor Awards 2015 for the HNI wealth-distributor category

29

Industry trends

• Right Mix for Growth in the financial services space

• Economic story spells opportunity for savings & investments

• Equity market volumes

• FII and DII net flows

• Wealth management

• Mutual fund AUM/net inflows

• Private Equity activity

• Housing Finance

• Specialists and Super-stores both

co-existing for client segments

• Technology usage deepening

• Products have made a track-record

• Regulations more evolved & mature

• Intermediaries now more organized

• Working population is young

• Aspiring middle-class

• Per Capita GDP expected to rise

• Bank deposit returns falling short

• Low penetration means opportunity

• Acceptability of financial products

Right Mix

for Growth

Financial Services space set on a growth path in India…

30

Demand Side Supply Side

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

(12.0)

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

FY9

6

FY9

7

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

Differential between WPI Inflation % and Per Capita Income growth %

Changes in Fin. Assets - Shares & Debentures (Rs Bn)

7% 8%

4%

7%8%

4%5%

4%

8%7%

9% 10% 9%

7%

9% 9%

7%

4%

24%

30%

47%

68%

FY9

6

FY9

7

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

YoY Growth % in GDP (GDP at Constant Prices)

Gross Domestic Savings (GDS) as % of GDP

Household Financial Savings as % of Total Household Savings

India’s GDP growth is expected to outpace most large

Emerging Markets; This should augur well for continued

uptick in disposable income and savings because……

Economic story spells opportunity for savings & investments

Source: RBISource: IMF

31

……historically, periods of GDP growth helped boost

gross savings and financial savings levels; Also, savings

rate rose faster during periods of high GDP growth

6.9%

8.9%

5.9%

4.2%

3.0%

1.8% 2.

6%

1.9%

1.0% 1.2%

-0.1

%

0.7%

0.3%

6.3% 7.

0%

5.8%

5.0%

3.8%

3.5%

2.8%

2.8%

2.2% 2.

9%

2.5%

1.5%

1.0%

Ind

ia

Chin

a

Ind

on

esia

Mal

aysi

a

S. K

ore

a

Mex

ico

Bra

zil

S. A

fric

a

Rus

sia

USA U

K

Ger

man

y

Japa

n

Previous 5-Year CAGR (2008-13)

Projected 5-Year CAGR (2013-18)

Difference between inflation and personal income

growth impacts the ability to save, which coincided with

an increase in allocation towards equity investments

Source: RBI, CSO

76% 77% 78% 80% 77% 77%

16%16% 15%

14%16% 16%

5% 5% 4%4%

4% 5%2% 2% 2% 2% 2% 2%

FY13 FY14 FY15 Q2FY15 Q1FY16 Q2FY16

Delivery Intraday Futures Options

39 40 65 61 67 6292 93 149 142 140 146275 325513 499 507 518

1,2741,565

2,614 2,806 2,4142,423

FY13 FY14 FY15 Q2FY15 Q1FY16 Q2FY16

Options Futures Intraday Delivery

3,508

2,022

3,340

1,679

3,128 3,148

Cash ADTO flat QoQ, though retail cash picked up in Jul/Aug

Source: NSE, BSE

Source: NSE, BSE

32Source: NSE, BSE

Cash segment maintains its proportion within the overall volume mix on both QoQ and YoY basis

Proportion of delivery has held steady within the cash volume mix since the last year

Market ADTO flat QoQ across both cash and F&O; But it is lower YoY due to decline in option volumes (Rs Bn)

Retail cash volumes increased QoQ due to uptick in Jul/Aug; But it is marginally lower than FY15 averages

Source: CDSL, SEBI

49% 47% 50% 52% 47% 49%

23% 22% 21% 21%19% 21%

19% 22% 21% 19%25% 22%

9% 9% 8% 8% 9% 8%

FY13 FY14 FY15 Q2FY15 Q1FY16 Q2FY16

DII FII Prop Retail

30%

70% Q2FY15

30%

70% Q2FY16

Delivery to Cash Volumes Intraday to Cash Volumes

1,400

797

1,113

236

26 -180

FY13 FY14 FY15 Q2FY15 Q1FY16 Q2FY16

-1375

-542

-220

-20

321 273

FY13 FY14 FY15 Q2FY15 Q1FY16 Q2FY16

FII seeing net outflows, while DII net inflows hold steady

Source: NSE

DIIs have registered net inflows since the last 8 months, following several quarters of net outflows (Rs Bn)

33

Demat accounts created in H2FY16 are 2X of the FY12-14 average, as the IPO market picks up slightly

Source: CDSL, NSDL

Source: NSE, BSE

FII flows were net sellers due to outflows in Aug/Sep; FII net inflows have declined this year vs. earlier years(Rs Bn)

Wealth management assets in India still lags the world in its allocation towards financial savings vs. physical savings

39% 43%

28% 14%

20%

19%

13%25%

Debt Alternative Real Estate Equity

India Global

Source: Karvy Report 2014

19.0 20.0 21.0 21.8 23.3

0.91.0 0.9 1.5

0.9

FY12 FY13 FY14 FY15 Sep-15

Existing Accounts (Mn) New Accounts (Mn)

(146

)

(93)

242 32

9

207

(2) 29

23

(2)

(8) 22

FY2013 FY2014 FY2015 Q2FY15 Q1FY16 Q2FY16

Equity Non-Gold ETF (Equity)

710

34% 27% 25%34% 36%

50% 56% 56%48% 46%

14% 13% 16% 15% 15%3% 3% 3% 3% 3%

FY12 FY13 FY14 FY15 Sep-15

Others Liquid / Money Market Income Equity

5,872 7,014 8,252 10,828 11,873

30%

31%

34%

36% 36%

37%

4.7

4.8

4.6

4.7

4.6

4.4

FY10 FY11 FY12 FY13 FY14 FY15

HFCs' market share

Home loan affordability (Property cost/annual income)

Interest strong in equity MFs; Opportunities galore in HFC market

Source: AMFI

Equity MFs registered significant, and sustained, net inflows since the last five successive quarters (Rs Bn)

Source: NHB, Banco Espirito Santo report, HDFC

Source: AMFI

MF AUM reach a high of `11.9 trillion, led largely by the resurgence in equity MF assets (Rs Bn)

Home Loans are becoming more affordable vs. Income, while Market share of HFCs is steadily increasing

8.5 8.6

11.8

2.6

4.3

5.9 17.4 18.022.4 20.7

28.1

33.0

FY13 FY14 FY15 Q2FY15 Q1FY16 Q2FY16

Deal Value (US$ Bn) Avg Deal Size (US$ Mn)

Source:: Venture Intelligence

PE deal values and average deal size picked up this quarter owing to deals like Flipkart, Snapdeal, ACT, Intelenet & Greenko

34

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Thank You

Contact:

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Chief Financial Officer

Motilal Oswal Financial Services Limited

Tel: 91-22-3982-5500 / 91-22-39825554

Fax: 91-22-2282-3499

Email: sameerkamath@motilaloswal.com

Sourajit Aiyer

Sr. Manager–Investor Relations

Motilal Oswal Financial Services Limited

Tel: 91-22-3982-5500 / 91-22-39825510

Fax: 91-22-2282-3499

Email: sourajit.aiyer@motilaloswal.com /

investorrelations@motilaloswal.com