Overview

Capital First Ltd. is a Systemically important NBFC with record of consistent growth &profitability. Capital First has a comprehensive product suite to meet multiple financial needsof customers including Consumer Lending, Corporate Lending and Wealth Managementservices

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

Capital First has a strong distribution set up through 202 branches across India covering morethan 40 cities. Capital First 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 the erstwhile Company FutureCapital Holdings Limited from promoters and additionally infused Rs. 1.00 billion of primarycapital into the company. Post the completion of Open Offer for acquiring 26% from thepublic, Warburg Pincus as the promoter now holds 67.35% of the entire equity share holdingof the Company, rebranded as Capital First Ltd.

Corporate Presentation – Q2-FY13 2

Our Vision

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

To capitalize on growing consumption in India, which is a key driver of the Indianeconomy.

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

To grow into a significant financial conglomerate and build businesses of retailloans, corporate loans & Wealth Management.

Corporate Presentation – Q2-FY13 3

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-FY13 4

Loan Assets Under ManagementChanging Composition

FY10 FY11 FY12 H1-FY13

Wholesale Credit Retail Credit

The Company plans to continue increasing the contribution from retail business to the overall AUM

Corporate Presentation – Q2-FY13 5

7%

93%

28%

72%56%44%

68%

32%

Retail Loan Book Composition – Q2-FY13

Mortgage Loans 74%

Gold Loans 14%

Two-wheeler Loans

3%

Consumption Loans

3%

Others 6%

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

Corporate Presentation – Q2-FY13 6

Branch Network

Delhi & NCR

Mumbai& ThanePune

Bangalore

Hyderabad

KolkataBaroda

Bhopal

Bhubaneswar

Chandigarh:

Coimbatore

Dehradun

Indore

Jaipur

Jalandhar:

Jodhpur

Lucknow

Ludhiana

Nasik

NagpurRaipur

Rajkot

Surat:

Udaipur

SalemVellore

Vizag

Ahmadabad

Ajmer

Amritsar:

Chennai

Kotta

Through an Extensive Branch Network, Capital First hasreached Customers across most of the states and major cities(Tier -1, Tier -2) in India

Total 202 Branches

Corporate Presentation – Q2-FY13 7

Processes – Underwriting Control

• At Capital First, 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-FY13 8

Mortgages – Application to Approval Ratio

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

In Mortgages, 29% of the total applications are disbursedafter passing through several levels of scrutiny andchecks, mainly centred around cash flowevaluation, credit bureau and reference checks

Rigorous and robust credit assessment processes in Capital First help in maintaining the highasset quality and low NPA levels

Corporate Presentation – Q2-FY13 9

Funding – (as on 30 Sep 2012)

We follow a policy of only matched funding for all assets, and majority of the borrowing are longterm in nature.

Corporate Presentation – Q2-FY13 10

Bank Borrowings,

69%NCD, 9%

Short Term Borrowings,

5%

Equity, 17% Long Term

Long Term

Long Term

Equity Shareholding Pattern – (as on 07 Nov 2012)Promoters

(Warburg Pincus-Cloverdell)

67.35%

FII,0.93%

Financial Institution,

0.19%

Bodies Corporate,

22.04%

Individuals, 7.39%

Others, 2.10%

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

Corporate Presentation – Q2-FY13 11

Financials

Corporate Presentation – Q2-FY13 12

Significant Changes in Accounting Policy in FY 13

During the quarter ending September 2012, the company changed the accounting policy andmade it more 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 averagetenure of loans, and therefore the profits will accrue to the P&L of the company over the life ofthe 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 positiveincome every 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, wouldhave been Rs. 288 mn and the Net Profit for the H1 FY13 would have been Rs. 548 mn.

* Explained in detail in the next slide

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 activitieshas been assumed constant over 8 quarters, and the impact has been demonstrated here. Theactual income from these activities in the quarters to follow in 2013 and beyond may be moreor less depending on market conditions and this table should not be read as a guidance for thefuture performance.

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 theimmediate quarters as per the new accounting method, eventually the profits will convergeand the impact is neutralised over time.

Amounts are in Rs. Mn

Corporate Presentation – Q2-FY13 14

Profit & Loss (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-FY13 15

Balance Sheet (Consolidated)All figures are in Rs. mn unless specified

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 228Current 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

Corporate Presentation – Q2-FY13 16

Capital First LimitedIndia Bulls Finance CentreTower II, 15th FloorSenapati Bapat MargElphinston (West)Mumbai 400 013

Websitewww.capfirst.com

E-mailInvestor Relations - Investor.relations@capfirst.com

Telephone+91 22 40423400

Corporate Presentation – Q2-FY13 17

Mr. V. Vaidyanathan is the Chairman and Managing Director of Capital First Limited. Recently, Warburg Pincus, one of the worlds most reputed Private Equity players, with funds of over US$ 40 billion in 36 countries, has acquired a majority stake in Capital First Limited. Concluding the unique Management Buyout of Future Capital with Warburg Pincus is one of his most significant professional achievements.

Capital First Limited is a leading player in financing Micro, Small and Medium enterprises. (MSMEs) and is listed on NSE and BSE. The company also provides Gold loans, Two Wheeler loans, Consumer Durable loans and uses cutting edge technologies in on-boarding and customer lifecycle management. Capital First Limited also offers Broking services for Equities and Commodities.

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

At ICICI Bank he was responsible for launching and building the Retail Banking Business in 2000 and taking it market leadership, which helped ICICI bank become a large retail powerhouse in the country. He also built the SME business and Rural Banking Business for the bank. His contribution includes building a network of 1400 Retail branches, building a vast deposit base, a franchise of 25 million customers, and a loan book of USD 30 billion in Mortgages, Auto and Consumer loans. The Retail, Rural & SME Banking Business were key drivers to help transition ICICI from a Domestic Financial Institution to a Universal Bank. His key passion is the usage of new age technology to expand retail lending and deposits to a vast expanse of India covering 800 cities.

Over the years, his contribution won him many domestic and international awards including Best Retail bank in Asia 2001, “Excellence in Retail Banking Award” 2002, Best Retail Bank in India 2003, 2004, and 2005 from the Asian Banker, “Most Innovative Bank” 2007, and was “Retail Banker of the Year” by EFMA Europe for 2008. He is a regular invitee for speaking at domestic and international conferences. He is an alumnus of Birla Institute of Technology and Harvard Business School. He is a regular marathoner and has run 7 marathons. He lives in Mumbai with his family of father, wife and three children.

Corporate Presentation – Q2-FY13 18