The document discusses key trends in India as an investment destination including: 1) Several sectors are experiencing strong growth driven by increasing urbanization, consumerism, and financial inclusion such as healthcare, energy, education, waste management, and financial services. 2) Many of these sectors still have large demand-supply gaps when it comes to meeting the needs of India's growing population such as in healthcare infrastructure and energy generation. 3) Investing in India still faces some risks and challenges including potential political instability, founders reluctant to dilute control of companies, governance issues at some family-run firms, and difficulties raising capital or finding liquidity events.

1. India as an Investment Destination February 2010 © 2008 NEA All rights reserved. Kittu Kolluri, General Partner Ben Mathias, Vice President

3. Investments peaked in 2007, dropped significantly in 2009 Period of Risk Aversion “ India Shining” Bubble Return to Rationality India Discovered 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

6. Key Growth Sectors Healthcare A Energy B Education C Waste Management D Financial Services E

8. … While Supply Continues to Lag Beds per ‘000 Shortage of Medical Professionals in India Global Average 1.5 Global Average 3.0 Doctors per ‘000 Nurses per ‘000 Bed demand – supply in Mumbai Bed demand – supply in Delhi A

9. Energy: Another Demand-Supply Mismatch Energy consumption in will increase 5X over next 20 years Macro Trend Growth Opportunity Expanded energy generation, both traditional and renewable Upgrading of existing transmission lines to reduce wastage (currently at 30%). Significant new transmission will also be required. EPC and manufacturing or energy equipment will continue to receive high margins and expanded growth Incentives from government for increased oil and natural gas exploration/production Biodiesel, if produced economically will increase in production Alternate, renewable sources of energy (small-hydro, biomass, wind & solar) will continue to be tapped Efficient lighting & metering will see rapid adoption Analytics & Remote Monitoring of energy consumption in order to drive efficiencies Fuel deficiency will only increase over time Environmental norms will get stricter Indian DNA of energy efficiency will continue B

13. Financial Services: Banks Looking to Expand Their Reach Banks are aggressively driving adoption of credit/debit cards Which is driving POS transactions While the UID project will create many applications that will drive adoption of Smart Cards E