Your Trusted Business Services Partner                 RESEARCH &                        BUSINESS                 CONSULTI...
INSIDE AXIENCE                                   › Specialized business services firm                                      ...
OUR SERVICE PORTFOLIO                  FINANCIAL RESEARCH                     BUSINESS                  RESEARCH &VERTICAL...
OUR PEOPLE    Hemant Jain – Founder and CEO     Hemant founded Axience in 2007 with a goal of building a specialist, besp...
FOOTPRINTS IN GLOBAL FINANCIAL RESEARCH A case illustration  Project Overview: Preparing an information pack for buyout a...
EXCELLENCE IN INDUSTRY RESEARCH         bc A case illustration  Project Overview: Comprehensive coverage of the Gulf Petr...
FEASIBILITY STUDY FOR EMERGING MARKET ENTRY AND JVCase illustration Project Overview: Feasibility/due diligence support f...
FOOTPRINTS IN GLOBAL FINANCIAL RESEARCH A case illustration  Project Overview: Supported the M&A team in preparing Pitchb...
FOOTPRINTS IN GLOBAL FINANCIAL RESEARCHA case illustration Project Overview: Preparing an initiating coverage report for ...
INVESTMENT RESEARCH – EQUITY RESEARCH – INITIATION REPORTA case illustration    Project Overview: Client requested Axienc...
ENHANCING FOCUS IN ‘INDIA CENTRIC’ RESEARCH A case illustration  Project Overview: To build comprehensive portfolio with ...
INVESTMENT RESEARCH – SHORT REPORT - CREDIT RESEARCHA case illustration  Project Overview: Client requested Axience to pr...
INVESTMENT RESEARCH – COVERED BOND RESEARCH REPORTA case illustration  Project Overview: Client requested Axience to prep...
DELIVERY EXCELLENCE IN BUSINESS INTELLIGENCEA case illustration Project Overview: Structured Credit Investor Mapping for ...
NICHE IN STRUCTURED FINANCE SERVICESA case illustration Project Overview: Performance evaluation of US CDO/CLO transactio...
NICHE IN STRUCTURED FINANCE SERVICESA case illustration Project Overview: CDO/CLO - Cash flow modeling Client: Leading C...
MARKET SIZING OF THE EUROPEAN SATELLITE INDUSTRYCase illustration Project Overview: The client requested Axience to map a...
STRATEGIC SUPPORT FOR A BIOTECHNOLOGY FIRMCase illustration Project Overview: Client requested Axience to compile a detai...
INDUSTRY RESEARCH REPORT FOR EUROPEAN SPORTING GOODS MARKETCase illustration Project Overview: Overview of the European S...
BUSINESS INSIGHTS GENRATION FOR AN AUTOMOTIVE MAJORCase illustration Project Overview: A major international automobile m...
RfP CoNTACT   Hemant Jain              CEo              hemant.jain@axience.com              〈direct 〉 +91 22 4205 4471   ...
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Axience Service Offerings Brochure June 2011

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Axience is a business services firm headquartered in Mumbai, India, with diverse clientele. Firm is managed by experienced professionals with global professional expertise and world-class education including, Founder and CEO, Hemant Jain who worked at Morgan Stanley in London and Schlumberger in Paris and read at the Indian Institute of Technology (IIT), Bombay, and the HEC School of Management in Paris. Axience’s board includes Tarek Tawfik, an experienced private banker, Alex Carre de Malberg, Senior Advisor within Investment Banking at The National Investor (TNI) in Abu Dhabi and Pall Mall Capital in London as well as Ajay Pahwa, CEO of Kaya Limited in India. In addition, Axience has an experienced advisory team including Ryan McGovern, an experienced Corporate Finance Professional based in London and Dagmar Schemann-Teuber, an experienced finance professional based in Munich.

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Axience Service Offerings Brochure June 2011

  1. 1. Your Trusted Business Services Partner RESEARCH & BUSINESS CONSULTING INTELLIGENCEBusinessResearch Mapping & Databases Market FINANCIAL Competition Analysis SERVICES Benchmarking Research & Modelling & Analytics Valuation Structured Finance
  2. 2. INSIDE AXIENCE › Specialized business services firm with global delivery capability › Practice areas: Financial Research & Analytics, Business Intelligence, Research & Consulting › Unique combination of business intelligence consulting and modelling/analytics › Multicultural management and team advised by an experienced international board › Focus on quality and client services › Service delivery model customized to add value › Global clientele and strong references › Excellent in-house training and processesCLIENT COVERAGEKEY CLIENTS › European leader in banking and financial services › Independent pan-European investment bank› One of the largest European management consulting firms › Leading Commonwealth trade and investment agency› Fortune 500 organizations › Major Middle East–based private equity firms › Multiple financial services search firms
  3. 3. OUR SERVICE PORTFOLIO FINANCIAL RESEARCH BUSINESS RESEARCH &VERTICALS & ANALYTICS INTELLIGENCE CONSULTING Investment Research Bespoke Projects Product Analysis › Equity research › Client mapping › Cost/pricing analysis › Strategic research › Investor mapping › Potential client/ › Credit research › Competition mapping customer identification › Commodities research › Peer reviews › Key product entry › Sector research › Human capital mapping › Brand/product perception › Product/market entry Corporate Finance Competition Analysis › Target mapping Strategic Databases › Competition benchmarking › Pitch book › Client › Peer group profiling › Valuation › Competition › Brand/product perception › Investor memorandum › InvestorACTIVITIES Market Analysis › Due diligence › Human capital › Market trends Structured Finance & Securitization Reports/Newsletters › Industry analysis › Cash flow modelling › Business moves › Opportunity assessment › Surveillance/monitoring › People moves › Regulatory environment › Trustee/servicer support › Product monitoring › Country intelligence › Topical analysis Investment Analytics Other › Hypothesis testing Capital Market Surveys › Global trade & investments › Trading strategies › Product › Bespoke reports › Portfolio optimization › Client segment › Data analytics › Risk reporting › Thematic › Target mapping › Model maintenance › Salary › Gap analysis Axience is a specialist business services firm providing research, analytics and intelligence services to all pillars of the financial services industry, consultancy, governmental and non-governmental agencies as well as other businesses.
  4. 4. OUR PEOPLE  Hemant Jain – Founder and CEO Hemant founded Axience in 2007 with a goal of building a specialist, bespoke, global business services firm. Before founding Axience, Hemant set up a 100 people analytics and research centre for a reputed UK based Business Intelligence firm. He was overall responsible for the India operations and looked after infrastructure set- up, delivery, human resources, business development and new ideas generation. Prior to that, he worked at Morgan Stanley’s securitization division in London. Hemant started his career at Schlumberger Industries in Paris. Hemant holds an MBA from the HEC School of Management, Paris, France and an engineering degree from the Indian Institute of Technology (IIT), Mumbai, India.  Tarek Walid Tawfik – Investor and Non-Executive Director Tarek is an Investor and a Non-Executive Director at Axience. He has several years of experience in the financial services industry. Tarek has more than 13 years of experience in the financial services industry, with expertise in wealth management, investment management and treasury. Most recently he was the Head of Private Wealth Management at Deutsche Bank in The Kingdom of Saudi Arabia and managed a portfolio of ultra high net worth clients. Earlier, he worked as the Family Investment Manager for the Abdul Rahman Saad Al-Rashid (ARTAR) Group from 2000 to 2007; prior to this he worked within the brokerage division and on Corporate Treasury desk of the Banque Saudi Fransi. Tarek is a Bachelor of Arts in Financial Management, from the King Saud University, Riyadh, Saudi Arabia and is fluent in Arabic, English and German.  Alex Carre de Malberg – Non-Executive Director Alex is a Non-Executive Director and helps in promoting brand Axience within Financial Services industry, specifically in Middle East and France. He is a Senior Advisor within the Investment Banking division at The National Investor (TNI) in Abu Dhabi. Prior to joining TNI, Alex was the Head of Investment Banking at Invest AD (Abu Dhabi Investment Company). Prior to that, he co-headed investment banking for Rothschild in the Middle East after working for Rothschild in Paris. He has also worked at Lazard Frères (New York), Peregrine Capital (Hong Kong) & Equinox Capital (Singapore). Alex holds a French engineering degree, an MS from the University of Massachusetts and an MBA from HEC-ISA.  Ajay Pahwa – Non-Executive Director Ajay is a Non-Executive Director at Axience and CEO of Kaya Limited in India, the beauty and wellness arm of Marico group of India. Ajay’s experience over the past 22 years has been in hospitality and retail businesses. Prior to Kaya, he worked with Yum Restaurants International for several years in senior level operating roles in the Far East, UK, and Middle East and North Africa. Prior to this he had several years of progressive professional experience in hospitality industry globally. Ajay holds an MBA from IMD Lausanne (Switzerland) and also possesses a Bachelors degree in commerce from Delhi University in addition to various reputable retail and hospitality industry certifications. Ajay won the CMO Asia Awards for Brand Excellence in the Beauty, Wellness & Fitness category in 2010.  Ryan McGovern – Non-Executive Senior Advisor Ryan is a Non-Executive Senior Advisor at Axience and a Partner at Ember Capital LLP, a London based alternative investment fund manager. Before establishing Ember Capital, Ryan and his colleagues were part of a Nomura sponsored European mezzanine fund business known as Nomura Mezzanine. Ryan has been involved in making numerous mezzanine and other subordinated debt investments in private equity owned companies across Europe since becoming a founding member of the Nomura Mezzanine business in 2005. Ryan joined Nomura Mezzanine from AIG- MezzVest, another European mezzanine fund manager, and prior to this he worked in corporate finance and M&A advisory in Europe at HSBC Investment Bank PLC and in the United States at Stephens Inc. Ryan has a BA from Vanderbilt University and did his MBA at HEC Paris and London Business School. For further information – Website: www.axience.com; Email: info@axience.com; Tel: +91 22 4205 4441
  5. 5. FOOTPRINTS IN GLOBAL FINANCIAL RESEARCH A case illustration  Project Overview: Preparing an information pack for buyout analysis of a UK-based structural steel fabrication company  Client: Direct Private Equity Investment team of a European Institutional Investor Axience Offerings: Provided complete information pack including:  Company overview with management and shareholding information, key projects, subsidiaries overview as well as growth plans  Detailed industry analysis with insights on industry trends and competitive analysis in the geographies where company operated  Financial projections, company valuation based on direct-cash-flow model and leveraged buyout analysis  Due diligence questions and strategic considerations for the client while going for the buyout Valuation Support:  Detailed valuation model based on DCF, valuation multiple, LBO  Conducted scenario analysis to find fair value of the company in — worst, current and best — economic and industry scenario over the next five year  Proposed range-bound deal multiple based on above analysis P roject Challenges: Key P ositives:  Low availability of company information – company or management level information was not  The information pack allowed client to get easily available. Axience used company’s business plan, accurate and objective third party analysis on the rigorous primary and secondary research to address buyout target. this issue as well as sourced financial information from  Our analysis pointed out some concerns in Company’s House in UK. business plan assumption and client was well  Niche industry – structural steel fabrication is a niche placed to clarify all concerns in the meeting with industry with low data availability on industry size and management trends. We assumed the industry to follow same trends as its related sectors such as construction and real  Axience delivered the project in 4 days from start estate. to finish Low dependency on yearly data and trends – Considering the recent global economic slowdown, real estate scenario has changed worldwide. In this respect, trends and market predictions older than 4-5 months become obsolete. Client Testim onial Objective third party analysis with complete information memorandum delivered before I boarded my flight to London, as desired. Well done. For further information; Website:www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  6. 6. EXCELLENCE IN INDUSTRY RESEARCH bc A case illustration  Project Overview: Comprehensive coverage of the Gulf Petrochemical sector and development of underlying sector model  Client: Leading UAE-based asset management firm W Europe P roject Requirem ents: 1000 NE Asia N America 1050 SE Asia 900 800 Production cost sensitivity to  Detailed analysis of the Gulf Petrochemical sector to ME Cost CHINA: industry leader Advantage crude oil prices Challenges – rising labor cost, exchange rate and high identify industry growth drivers, key emerging trends, ME NE Asia dependence on trade 290 N America W Europe 510 High labor skills SE Asia 490 500 Low labor cost challenges, future expected trends 400 ME 200 INDIA: in high growth phase  Sector model was required to estimate expected Challenges – Labor productivity and Brent crude - 98$/ bbl 2008: 2009: Brent crude - 45$/bbl lack of export expansion Diversify and/ or demand and supply situation over the next five years attract companies to GULF: developing  Profile major Gulf countries with respect to the invest in production plastic processing of capital goods such zones Low labor skills High labor cost as cars, consumer Challenges – industry skill set, expertise and electronics and Consumer home Petrochemical sector technology appliances  Profile key players and projects in the sector Non Durables Durables Axience Deliverable: Provided comprehensive industry coverage report wherein we:  Estimated and projected global petrochemical demand and supply (ethylene was used as a proxy for industry) over the next five years  Identified industry growth drivers, emerging trends, challenges and constraints  Compared GCC petrochemical market with global market evaluating feedstock advantage of GCC in detail  Compiled and presented a comprehensive database containing all on-going petrochemical projects in the region  Profiled major Gulf companies operating in the petrochemical space  Profile Gulf countries with respect to their Petrochemical industry capacity, global contribution etc Cracking the P roject: Key P ositives:  Building project database with capacity by  Axience analysis challenged earlier demand and supply product type and feedstock type was the key to estimates taking into account post crisis situation arrive at industry forecast and check for  The client used most of our key findings in private conditions of industry overcapacity placement of a petrochemical industry project  Understanding the global feedstock dynamic and  Asset manager was able to garner significant market reasoning out Gulf positioning and advantage in traction for the published report that context Client Testim onial I appreciate the dedication of your team on this coverage report. The report looks rich in content and insights. It’s good to see that Axience has continued to keep the quality level high in this second report for us. For further information; Website:www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  7. 7. FEASIBILITY STUDY FOR EMERGING MARKET ENTRY AND JVCase illustration Project Overview: Feasibility/due diligence support for Europe based pre-paid card and payment processing player for a pre entry assessment of Indian market Client: European payment processor interested in entering the Indian market Exhibit 1: Industry Growth Research Methodology Axience prepared a detailed report and investor presentation covering:  Detailed industry analysis with insights on industry trends and growth forecasts  Competitive landscape: benchmarking Indian peers of European clients in this industry  Company analysis: Overview, business description and structure, products, service channels, organizational structure, investors, management team and strategy Sources for R esearch: of two potential JV/Acquisition targets • Company website – understanding business, verticals, news,  Business plan: Growth plans and annual reports, management strategy projections for next five years • Databases – for company and competitor financials  Location / Partnership strategy: • Industry reports – for industry specific information • News articles – for external views on company strategy Analysis of various options for Indian • Management Interviews – for detailed insights market entry • Government and regulatory body websitesProject Challenges Exhibit 2: Cost Benefit Analysis Given the niche and complex market, the team had to quickly develop domain knowledge to maintain the quality standards required for this projectKey Positives Axience team attended distributor conference organized by an industry player to understand the business model first- hand and met key distributors and telecom operators Rigorous primary and secondary research was conducted for competitive benchmarking and industry analysisAxience Business Research Offerings Research & Insight Strategic Support Business Intelligence India Desk  Business research  Market Analysis  Database & Mapping  Evaluation Stage  Market research  Competition Analysis  Consumer Analytics  Market Entry Stage  Social Media research  Corporate Development  Dashboards  Ongoing Support For further information: Website www.axience.com; Email info@axience.com; Tel +91 22 4205 4441
  8. 8. FOOTPRINTS IN GLOBAL FINANCIAL RESEARCH A case illustration  Project Overview: Supported the M&A team in preparing Pitchbook for a company in the IT industry  Client: Leading UK-based boutique investment bank Axience Offerings:  Presentation included detailed industry analysis, profiling of potential targets and their valuation using comparable company analysis  Studied the financial statements of the 25 companies and removed non-recurring/one-time charges from the income statement  Calculated clean EBIT and net income for all companies  Calculated operating and valuation ratios and compared companies in terms of profitability, leverage ratios and valuation  Presented the information in graphical format for the target and selected its peer group Com pany (Target) P rofiling: Provided profiles of 10 software firms covering:  Business description  Product and services portfolio  Financial overview  Organization chart and Management and Board overview  Annotated stock price chart  Precedent mergers and divestitures analysis  Company’s strategy Axience Corporate Finance Offerings  Opportunity/Client Database Business Development &  Target client mapping/industry mapping Origination Support  News Monitoring and opportunity identification  Target short listing and profiling for M&A/JVs  Info Memo Production/Offering Document Execution Support  Industry, sector, company research, growth estimates  Valuation/Modeling  Comparable Company Analysis  India related deal making and complete due diligence  White paper production Other Support  Competition Monitoring – League tables  Desktop due diligence For further information; Website:www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  9. 9. FOOTPRINTS IN GLOBAL FINANCIAL RESEARCHA case illustration Project Overview: Preparing an initiating coverage report for a France based small-cap Company Client: Leading independent pan-European investment bank and brokerage house P roject Challenges:  Target had grown from a small firm within a year making eight acquisitions in FY 07, multiplying its’ revenue by 15 times and entering into three new business lines  Lack of information and language constraints on all information sources – website, financial reports, public media, management discussion transcripts and press release  Severe paucity of company level information  Majority of sector level details were in regional language  No analyst coverage  Production of final report in three weeks including management calls Axience Offerings: Key P ositives:  Provided a complete initiating coverage report  Brokerage house became the first to initiate coverage including company overview, industry overview, for the firm financial projections and valuation sections  Liquidity in stock significantly increased which  Valued the company using sum-of-the-parts generated favorable environment for the stock to analysis as the company analyzed was present in migrate from Marche Libre in France to AlterNext four different industry segments  Used purchase method to consolidate the acquisitions  Covered all four sectors in industry analysis section CLIENT TESTIM ONIAL: “Axience has proven precise in its analytical work and extremely timely in meeting delivery deadlines. We are pleased with the team’s ability in supporting us in researching across different sectors with depth and consider them a reliable partner” Director, Corporate FinanceAxience Investment R esearchAxience proposes to set up capabilities to complement and supplement internal research teams of investment banks,brokerage, asset management, hedge funds and independent research organizations. Following is an illustration of ways inwhich Axience can support global buy side players in mitigating their research centric challenges; Team Size Managerial Bandwidth Cost Budgeting Value Added ServicesTypical Building large in-house Exhaust significant Sub-optimum Dearth of other valuechallenges faced research capability has managerial bandwidth in research budget added services due toby research long gestation period recruitment, retention, lack of scaleteam s training and developmentR elated value Axience maintains a Significant enhancement in Axience provide Complementary valueproposition by ready-made pool of managerial bandwidth with significant cost added services suchAxience junior/mid level analysts junior analyst role arbitrage as monthly to assist lead analyst outsourced to Axience benefits to its client newsletter, research summary report, databases For further information; Website:www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  10. 10. INVESTMENT RESEARCH – EQUITY RESEARCH – INITIATION REPORTA case illustration  Project Overview: Client requested Axience to prepare a 20 page initiation reports on each of 10 small and medium European companies, with a Buy/Hold/Sell recommendation for their equity shares, with a 12 month time horizon. We have here discussed the report made on a Healthcare company.  Client:A large independent investment house in Europe. Division Value of operating Value of Weighting 1.2 0.21 0.01 R esearch M ethodology: assets Equity 1 0.38  Axience carried out information search (€ m) (€ m) 0.8 Contract 1.05 Medical 72.0 40.28 42.2% 0.6 0.44 about the company and the industry, to get 0.4 company and industry overview. Devices 48.6 35.02 36.7% Care 0.2 Equipment 82.3 19.47 20.4% 0  Axience prepared a detailed earnings 14.2 0.56 0.6% Contract Medical Care Equipment SOTP Total model with five years of historical data devices  SWOT analysis, Porter’s 5 forces analysis Total 100% Beta and management analysis for the company FV (€) 1.75 2 2.25 2.5 2.75 were carried out. 2.00%  Earnings model was finalized with 5 year Terminal growth € 1.51 € 1.18 € 0.91 € 0.68 € 0.48 2.25% € 1.62 € 1.26 € 0.97 € 0.73 € 0.52 future projections. 2.50% € 1.73 € 1.35 € 1.05 € 0.79 € 0.57  Valued the company using sum-of-the- 2.75% € 1.86 € 1.45 € 1.12 € 0.85 € 0.62 parts analysis as the company analyzed rate 3.00% € 2.00 € 1.56 € 1.21 € 0.92 € 0.68 was present in four different industry Sources for R esearch: segments. • Company website – understanding business, verticals, news,  Valuation (DCF & Relative) of the equity annual reports, management strategy shares was done with respect to • Bloomberg database – for companyand competitor financials competitors using key valuation multiples • Industry reports – for external views on company strategy  Axience came out with a buy/hold/sell • News articles – for external views on company strategy recommendation based upon its analysis. • Broker reports & discussions P roject Challenges: YE: 31 Dec (€ m) 2007 2008 2009e 2010e Sales (€ m) 129.5 166.3 185.7 214.8  The company is undergoing large scale reorganization in all % change yoy 33% 28% 12% 16% divisions; hence estimating revenues was a challenging task. EBIT (€ m) 6.21 5.96 11.32 14.70  The company earns revenues in various currencies and hence EBIT margin 4.8% 3.6% 6.1% 6.8% estimating all revenues in reporting currency was a challenge EPS diluted (€) 0.01 -0.01 0.01 0.05 due to exchange rate fluctuations. EV / Sales 1.91 1.02 0.96 0.84  Lack of information and language constraints on all EV / EBIT (DA) 39.78 28.44 15.67 12.34 information sources – website, financial reports, public media, P/E (x) 190.09 -63.08 91.15 15.12 management discussion transcripts and press release. PEG -2.43 0.26 -0.54 0.03 Key P ositives:  With Axience’s exposure to comprehensive business research, we were able to do an in-depth analysis of the business and come out with suitable recommendations. Axience EquityR esearch Offerings: Fundamental Research Trading Desks Portfolio Strategy  Equity analysis  Model creation and updates  Back testing of theme based  Initiating coverage reports  Relative value trade ideas portfolio ideas  Earning update reports  Technical analysis  Support services for sector  Thematic reports  Earning events tracker allocation  Macro economy research  Stock performance analysis For further information; Website: www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  11. 11. ENHANCING FOCUS IN ‘INDIA CENTRIC’ RESEARCH A case illustration  Project Overview: To build comprehensive portfolio with potential to deliver long-term investment performance  Client: Investment Team of a leading family office P roject Requirem ent:  Portfolio selection process was divided into five phases, of which Axience was allocated complete responsibility for four phases:  Phase I: Deciding investment themes  Phase 2: Developing Statistical Selection screen  Phase 3: Performing financial statement and investment analysis  Phase 5: Conducting peer group analysis <<Phase 4 was executed at client end using their proprietary systems and processes>> Axience Deliverable:  Selection of five stock per identified investment themes. We delivered stock selection under four themes – Consumer Masses, Consumer Discretionery, Infrastructure and Power.  For each theme, deliverable included; o Initial Statistical Screen comprising all stocks matching the theme o Fundamental Screen comprising stocks qualified in initial screening o Ranking and selecting top quartile stocks based on fundamental screen o Complete financial/investment thesis on selected stocks o Peer group analysis for the selected stocks  Prepared portfolio analytics for regular tracking of 20 stocks after portfolio building phase is over Cracking the P roject: Key P ositives:  Axience’s Indian market expertise and local  The client eventually invested in 14 out of 20 stocks presence was useful in providing insights on recommended by us qualitative aspects – management quality,  Pleased with Axience understanding of industries and corporate governance, sector growth potential companies covered, client made Axience responsible etc – of the covered companies for physical due diligence on select companies Client Testim onial To summarize – this work is the most detailed oriented piece I have ever come across. For further information; Website:www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  12. 12. INVESTMENT RESEARCH – SHORT REPORT - CREDIT RESEARCHA case illustration  Project Overview: Client requested Axience to prepare a 3 page credit research report on a European Telecom company, with a Buy/Hold/Sell recommendation for its bonds, with a 6 month time horizon.  Client: Leading global private bank. Wind – Corporate Structure R esearch M ethodology:  Axience carried out detailed information search about the company and the industry, to get company and industry overview.  Axience prepared a detailed earnings model with three years of historical data punched in the model for income statement, balance sheet and cash flows.  SWOT analysis, Porter’s 5 forces analysis and management analysis for the company were carried out. Secondary Sources for R esearch:  Earnings model was finalized with 3 year future projections. • Company website – understanding business, verticals, news, annual reports, management strategy  Relative valuation of the bonds was done • Bloomberg database – for company and competitor financials with respect to bonds of competitors and • Industry reports – for external views on company strategy bonds of other companies with similar • News articles – for external views on company strategy credit ratings. • Broker Reports - for external consensus estimates  Axience came out with a buy/hold/sell recommendation based upon its analysis. P roject Challenges:  The company had a complex corporate structure, with some of its divisions having restrictive covenants.  With the various leveraged buyouts by the company in the past, the possibility of any such transactions in future resulted in an overhang on the bond prices. Key P ositives:  With Axience’s exposure to comprehensive business research, we were able to do an in-depth analysis of the business and come out with suitable recommendations even with restrictions on report size.  After analyzing bond prospectus, company website and other documentation, Axience was able to present a clear issuer structure which was the key for understanding the credit risk and structure. Axience Credit Research Offerings: Fundamental Research Trading Desks Portfolio Strategy  Corporate Credit Analysis  Model creation and updates  Back Testing of theme based  High Yield Analysis  Relative Value trade ideas portfolio ideas  High Grade Analysis  Yield Navigator  Support services for duration  Thematic Reports  Tear Sheets management and sector allocation  Macro Economy Research  Credit events tracker  Bank loan analysis For further information; Website: www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  13. 13. INVESTMENT RESEARCH – COVERED BOND RESEARCH REPORTA case illustration  Project Overview: Client requested Axience to prepare a 3 page Research Report on a Covered Bond issued by an Irish Bank, with a Buy/Hold/Sell recommendation for its bonds, with a 6 month time horizon.  Client: A Bank in Europe R esearch M ethodology:  Axience carried out information search about the bank and the banking industry, to get organization and industry overview.  Axience prepared an earnings model with five years of historical data punched in the model for income statement, balance sheet and cash flows.  SWOT analysis, Porter’s 5 forces analysis and management analysis for the company Secondary Sources for R esearch: were carried out. • Company website – understanding business, verticals, news,  Earnings model was finalized with 3 year annual reports, management strategy future projections. • Bloomberg database – for company and competitor financials  Relative valuation of the covered bonds • Industry reports – for external views on company strategy was done with respect to bonds of other • News articles – for external views on company strategy banks. • Broker Research – for consensus views on the bank  Axience came out with a buy/hold/sell recommendation based upon its analysis. P roject Challenges:  The Risk on the covered bank was linked to the risk on the bank, which in turn was linked to the sovereign risk as the Bank is majority owned by the government. Hence, evaluation of risk was a bit tricky.  Any change in house prices would have a significant impact on the bond value as the underlying assets in the collateral were house properties. Estimating any such change was a challenging task. Key P ositives:  With Axience’s exposure to comprehensive business research, we were able to do an in-depth analysis of the bank and come out with suitable recommendations. Axience Credit Research Offerings: Fundamental Research Trading Desks Portfolio Strategy  Corporate Credit Analysis  Model creation and updates  Back Testing of theme based  High Yield Analysis  Relative Value trade ideas portfolio ideas  High Grade Analysis  Yield Navigator  Support services for duration  Thematic Reports  Tear Sheets management and sector allocation  Macro Economy Research  Credit events tracker  Bank loan analysis For further information; Website: www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  14. 14. DELIVERY EXCELLENCE IN BUSINESS INTELLIGENCEA case illustration Project Overview: Structured Credit Investor Mapping for a leading investment bank. We supported their fund derivatives/structured fund product business and mapped business structure, investment- strategy, asset under management, investment managers of global institutional investors, within the structured credit space. Client: Leading investment bank and brokerage house P roject Challenges:  Large scope of project – both in terms of geographical coverage and types of investor segment  We screened over 500 institutional investors across geographies to identify and profile 200+ relevant investors, depending on their structured credit investments.  Paucity of information regarding details on structured credit exposure of institutional investors P roject Results:  Provided detailed investor mapping database featuring over 200+ institutional investors across geographies  Investor Segment Coverage — Pension funds, Family Offices/Foundations, Asset managers, Insurance companies, Wealth Management firms, Alternative Investment managers  Geographical Coverage – Europe, Middle East, Americas, Australia, Japan Client Feedback and Recomm endation: Client judged the interim deliverable of detailed institutional investor maps as extremely useful, high quality and unique and increased the scope of the projects to cover structured credit specific funds and institutional investment advisors.Business Intelligence Offerings: Axience bespoke projects identify and map client and competition supportingmanagement and business strategy. Axience also provides structured competition and client database services designed toensure effective use of available as well as sourced data and information. Bespoke Projects Strategic Databases Reports/Newsletters Capital Market Surveys  Investor mapping  Client  Business moves  Product  Client mapping  Competition  People moves  Client segment  Competition mapping  Investor  Product monitoring  Thematic  Peer reviews  Human capital  Topical analysis  Salary  Human capital mapping  Product/market entry For further information; Website: www.axience.com; Email: info@axience.com; Tel: +91 22 6671 8696
  15. 15. NICHE IN STRUCTURED FINANCE SERVICESA case illustration Project Overview: Performance evaluation of US CDO/CLO transactions constituting client portfolio Client: Risk department of a leading European bank P roject Challenges:  Customized surveillance template required to address client’s risk management objective  CDO collateral comprised of Leveraged Loans  Quick turnaround time and stringent timelines  Calculation of additional information from the trustee report, offering memorandum as well as market counterparties  Frequent modifications in the surveillance templates based on client requests Axience Offerings: Key P ositives:  Detailed surveillance report to highlight collateral and  Additional sections on historical trends and highlights bond information, deal characteristics, key ratios, test support client in the investment decision process summary, etc  Quick turnaround time  Historical information/trend analysis in graphical format  Significant help to risk management team in portfolio for coverage tests, portfolio profile tests, collateral analysis quality tests, etc  Changes in ratings for each asset analyzed on a  Stratification of portfolio by different classifications periodic basis  Analysis of Defaults and Swaps (funded / unfunded)  Established monitoring of non-regular documents  Issuer Overlap Analysis from trustees and helped client meet regulatory  Client specific customization requests requirements CLIENT FEEDBACK AND R ECOM M ENDATION: Pleased with the quality output and quick delivery, the client has extended its engagement with Axience to cover other geographies, asset classes and services. Credit Support Chart:  Graphical representation depicting upgrades and  downgrades of the underlying assets over the period of time  Presentation of the securities comprising pool on the basis of rating hierarchy  WARF analysis used as a replacement for shadow rated securities  Enables the potential investors to analyze various risk level of the securities in the pool  Tranche monitoring using borders  Important tool for Risk Management and Analytics team For further information; Website:www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  16. 16. NICHE IN STRUCTURED FINANCE SERVICESA case illustration Project Overview: CDO/CLO - Cash flow modeling Client: Leading CLO Investor P roject Challenges:  Complexity in modeling conditions and triggers associated with asset side of the transaction as the collateral is dynamic till the reinvestment period ends.  Modeling revolving notes used as funding or liquidity facility to the transaction.  Replication of collateral and bond waterfall.  Ensuring cash flow movement in the transaction and quality control of data. Axience Offerings: Key P ositives:  Accounting for all deal specific inputs and assumptions  Axience expertise in securitization helped in Axience including triggers, payment priorities, assets and taking significant ownership of task. Excel modeling liabilities. with advance macros and VBA expertise helped in  Repline or Asset level collateral cash flows. developing a robust, efficient and scalable model  Collateral cash flows on the basis of WAC, WARM and  Comprehensive cash flow model coverage including repayment type using different vectors such as all deal covenants, triggers and characteristics. prepayments, defaults, recovery rate, recovery lag and  Client is considering outsourcing of 50 CLO model to reinvestments. Axience  Bond cash flow model based on the payment priority and trigger events, as detailed in the deal indenture.  Providing bond analytics such as yield, duration, NPV etc. CLIENT FEEDBACK AND R ECOM M ENDATION: “We were having a significant lack of resources in modeling the cash flow of our European CLO holding. Axience helped us in this task and team Axience was analytical and willing to go extra miles in helping us meet a deadline.” – JB, Portfolio Manager, European Credit Fund Structuring Considerations:  Modeling such transaction comprises of static approach taking the best estimated scenario vectors such as CPR, CDR, recovery rate and recovery lag.  CLO valuation involves projecting cash flows for the underlying collateral using assumptions derived from historical collateral performance and deal specific inputs.  Account for deal specific payment priority, Interest coverage tests, par value tests and trigger events. For further information; Website:www.axience.com . Email: info@axience.com . Tel: +91 22 6671 8696
  17. 17. MARKET SIZING OF THE EUROPEAN SATELLITE INDUSTRYCase illustration Project Overview: The client requested Axience to map and assess the market size of the global European Satellite Industry Client: A leading information publisher for the European Space Industry Exhibit 1: Satellite Industry Value Chain Research Methodology  Axience developed a quick perspective on the European space industry, industry technological verticals and value chain of the satellite sector  Axience, after having conducted its preliminary research, consulted with its industry expert as well as the client, to ensure that the OEM and subcontractor categorization was both exhaustive and universally accepted  Axience undertook rigorous secondary research and developed a detailed database of enterprises, referenced per Sources for R esearch: • Company websites – understanding business, technology industry sub-category and technology verticals, news, annual reports, management strategy  Axience then estimated the aggregate • Databases – for company and competitor financials market size of the European satellite • Industry reports – for industry specific information industry based on data gathered from • News articles – for external views on company strategy financial documentations, research • Expert Interviews- for detailed insights references and expert consultation • Government and industrial associations’ websites  Axience conducted primary research • In-depth interviews with management, industry experts and undertaking in-depth interview with key regulators stakeholdersProject Challenges Exhibit 2: Company Profile Business research for the industrial sector is always challenging. In addition, space and satellite sector is niche and is technical in nature. The subcontractors and suppliers often have a limited online presence; and occasionally, language barriers were a grey area.Key Positives Axience developed a focused industry map, customized to specific client requirements. Combined with the market size assessment, the deliverable proved to be an excellent reference resource for the client.Axience Business Research Offerings Research & Insight Strategic Support Business Intelligence India Desk  Business research  Market Analysis  Database & Mapping  Evaluation Stage  Market research  Competition Analysis  Consumer Analytics  Market Entry Stage  Social Media research  Corporate Development  Dashboards  Ongoing Support For further information: Website www.axience.com; Email info@axience.com; Tel +91 22 4205 4441
  18. 18. STRATEGIC SUPPORT FOR A BIOTECHNOLOGY FIRMCase illustration Project Overview: Client requested Axience to compile a detailed report on M&A activity in the molecular diagnostics industry in 2010 Client: A leading biotechnology company based in Europe Exhibit 1: Number of Deals Research Methodology 16  Axience methodology included detailed source list creation through public sources 12 and databases  Bloomberg and other deal databases were 8 used to collect additional information about the deals 4  Recursive search on deals, companies, people, geographies, based on a structured 0 process using exhaustive key words list and Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 advanced internet research techniques  The information then collected would be cleaned and finally presented in the Sources for R esearch: deliverable format • Company website – understanding business, verticals, news,  Selected target buyers and sellers which annual reports, management strategy • Databases – for company and competitor financials were involved in transaction were profiled • Industry reports – for industry specific information in detail • News articles – for external views on company strategy  Axience compiled the list of regional • Government and regulatory body websites company registries in Germany to gather financial details not available in public domain.Project Challenges Exhibit 2: Deal Value Break-up Obtaining the list of all the deals in the niche segment of 30 molecular diagnostics in the last 12 months globally Limited time frame for execution 25 20Key Positives 15 Axience through its detailed research listed down all the deals 10 in the last 12 months and also profiled the top buyers and 5 sellers in the molecular diagnostics category 0 Axience further supported the management in meeting with 0-5 5-10 10-30 30-50 50-100 100-150 150-200 Above 200 Indian Oncology companies and compiled a list of PE/VC firms with portfolio firms in the oncology industryAxience Business Research Offerings Research & Insight Strategic Support Business Intelligence India Desk  Business research  Market Analysis  Database & Mapping  Evaluation Stage  Market research  Competition Analysis  Consumer Analytics  Market Entry Stage  Social Media research  Corporate Development  Dashboards  Ongoing Support For further information: Website www.axience.com; Email info@axience.com; Tel +91 22 4205 4441
  19. 19. INDUSTRY RESEARCH REPORT FOR EUROPEAN SPORTING GOODS MARKETCase illustration Project Overview: Overview of the European Sporting Goods Market and benchmarking of major players Client: An US-based boutique consulting Exhibit 1: Industry Overview Research Methodology  Prepared an industry overview including overall industry size, market share of key players and key growth drivers  Identified global players and benchmarked them using analytical modeling techniques  Profiled major players along following metrics: • Business overview Sources for R esearch: • Key financials • Company website – understanding business, verticals, news, annual reports, management strategy • Key products/ services • Databases – for company and competitor financials • Top management and shareholders • Industry reports – for industry specific information • News articles – for external views on company strategy • Geographical reach • Management Interviews- for detailed insights • Recent mergers and acquisitions • Interviews with sports industry experts especially in Central and Eastern Europe • Recent news and developmentsProject Challenges Exhibit 2: Top 12 European Markets Limited data: Data availability, especially in central and eastern Europe was low. Axience assumptions / analysis was used to estimate the industry size and future trends Currency fluctuations: Aligning historical industry data and statistics reported in different currencies into a common base was a key challenge.Key Positives Axience helped the client to understand the industry structure along with the identification of major players in the domain Client eventually could screen out few geographies to focus for the next round of research deliverableAxience Business Research Offerings Research & Insight Strategic Support Business Intelligence India Desk  Business research  Market Analysis  Database & Mapping  Evaluation Stage  Market research  Competition Analysis  Consumer Analytics  Market Entry Stage  Social Media research  Corporate Development  Dashboards  Ongoing Support For further information: Website www.axience.com; Email info@axience.com; Tel +91 22 4205 4441
  20. 20. BUSINESS INSIGHTS GENRATION FOR AN AUTOMOTIVE MAJORCase illustration Project Overview: A major international automobile manufacturer consulted Axience to develop its car dealership network in key Indian cities Client: An European automotive major Research Methodology: Task Dealer Details 1st Shortlist 2nd Shortlist 3rd Shortlist The project involved identification of potential dealers and favorable sites for Output • 20 dealers in • 10 dealers in • 5 dealers in major major cities • 8-10 in small cities major cities • 4-5 in small cities cities • 2-3 in small cities new dealerships. Based on the objective, the study involved following steps: Source Internet /  Short-listing cities with maximum Internet Interviews Field Research Interviews potential: a short-list of cities was generated based on factors such as car Sources for R esearch: sales data, income per capita and growth, • Company website – understanding business verticals, penetration of white goods and two- news, annual reports and management strategy wheelers. Axience collected this information • Bloomberg database – for target list and financials from government sources, automotive • Industry reports – for external views on company reports and various industry sources. A strategy total of ten cities were shortlisted. • News articles – for external views on company  Mapping dealer networks, due strategy diligence, and identification of high potential dealers: a three stage short- listing process was used to arrive at final Project Challenges: list of potential dealers.  Discussion with marketing managers:  Information sources are not readily available – Axience To further ensure exhaustiveness, and to adapted by combining both primary as well as secondary gain insights regarding regional trends and data collection methodologies to deliver a quality product buying behaviors, Axience conducted  India is a complex market, and it is always a challenge to interviews with senior marketing managers pick a representative sample size when conducting primary of major automotive companies across research – Axience drew on its network of industry experts India. to revalidate the representativeness of the sample  Identification of favorable dealership population. locations: Axience conducted rigorous secondary research based onKey Positives: socio-economic indicators such as  Axience developed a brief and actionable deliverable, making population growth and economic effective use of the right research methodologies and prosperity. Interviews were conducted with resources. dealerships and real estate agents to better  As a value-add, Axience also evaluated Tier II cities in India understand the logistics and economics and developed a location strategy for the client. affecting various location alternatives.Axience Business Research Offerings Research & Insight Strategic Support Business Intelligence India Desk  Business research  Market Analysis  Database & Mapping  Evaluation Stage  Market research  Competition Analysis  Consumer Analytics  Market Entry Stage  Social Media research  Corporate Development  Dashboards  Ongoing Support For further information: Website www.axience.com; Email info@axience.com; Tel +91 22 4205 4441
  21. 21. RfP CoNTACT Hemant Jain CEo hemant.jain@axience.com 〈direct 〉 +91 22 4205 4471 〈mobile 〉 +91 98 6716 0611 〈mobile 〉 +44 7515 641 602 Discover us at www.axience.com To initiate a dialogue with us please contact info@axience.com Axience Consulting Pvt. ltd. 504, Morya Classic Off New Link Road Andheri (W) Mumbai - 400053 India 〈 tel 〉 +91 22 4205 4441 〈 fax 〉 +91 22 4205 4445

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