2. Disclaimer
1
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This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future,
including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking
statements. Forward looking statements are based on certain assumptions and expectations of future events. This presentation should not be relied upon as a
recommendation or forecast by SMC Global Securities Limited or its subsidiaries (âCompany"). Please note that the past performance of the Company is not, and should
not be considered as, indicative of future results. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual
results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. The Company does not undertake to
revise any forward-looking statement that may be made from time to time by or on behalf of the Company. Given these risks, uncertainties and other factors, viewers
of this presentation are cautioned not to place undue reliance on these forward looking statements.
The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their
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Certain information in this presentation, in particular the pro forma financial statements are based upon unaudited management accounts. Unless otherwise indicated,
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3. Table of Contents
Key Discussion Points
1
Company Overview
2
Segment Overview and India Market Opportunity
3
Financial Highlights
4
2
5. Advisory
⢠Established in 2008
⢠338 employees(3)
⢠Over 9,400 clients
⢠Includes: Portfolio and wealth management,
mortgage and loan advisory, real estate
advisory and investment banking services
Financing
⢠Established in 2008
⢠63 employees(3)
⢠$72.2mn in secured and unsecured loans as
of December 31, 2017
⢠Over 12,000 clients
⢠Includes: Loans against securities, loans
against property, medical equipment
financing, IPO financing, personal loan etc.
⢠Established in 1994
⢠2,267 employees(3), 2,500 sub-brokers, and over
9,800 independent distributors(2)
⢠Over 525,400 unique trading clients (4)
⢠Includes: Equity, commodity, currency and
insurance brokerage; distribution of third party
financial products; depository and clearing
services; research; and arbitrage trading
A Leading Diversified Financial Services Company in India
⢠Founded in 1994 and based in New Delhi, SMC is a diversified financial
services company
⢠SMC has 89 branches throughout India with additional office in Dubai
and 1.8 million clients
⢠Client base ranges from middle class to high net worth individuals, Corporates
and institutional clients, Indian nationals living abroad and international
investors desiring to invest in the Indian market
⢠Broad footprint across 500+ cities in India supported by over 2,950 employees,
approximately 2,500 sub-brokers(1) and 9,800+ independent distributors(2)
⢠Founders Subhash Chand Aggarwal and Mahesh Chand Gupta, together with
their families, own a controlling interest in the Company
Business Segments
Trading and Distribution
Contribution (Fiscal Year ended March 31, 2017)
Overview
(1) Sub-brokers are independent brokerage offices of typically 1-10employees who exclusively sell SMC brokerage products. Includes âauthorized personsâ
(2) Represents the number of independent distributors that have sold our products over the 2 years ended December 31, 2017
(3) Segment-specific employee counts exclude 312 employees related to operations, administration, finance/accounting and human resources and 11 management members
(4) Does not include insurance brokerage clients
Note: All segment financial information included herein is presented in accordance with Indian GAAP. Exchange rate is INR65/US$.
Revenue ($ in millions)
Total: $82.1MM
Pre-Tax Income ($ in millions)
Total: $10.5MM
Financing
$6.1MM
7.4%
Advisory
$6.4MM
7.8%
Trading &
Distribution
$69.6MM
84.8%
Financing
$4.1MM
38.5%
Advisory
$0.05MM
0.5%
Trading &
Distribution
$6.4MM
61.0 %
4
6. Group Structure
Note: Group Structure as of December 31, 2017.
SMC Comex
International DMCC
(Commodity Broking,
Trading & Arbitrage at
Dubai)
SMC Insurance
BrokersPvt Ltd.
(Insurance Broker)
SMC Global IFSC Ltd
(Stock broker and
Clearing member
of Exchanges in
GIFT city)
SMC Real Estate
Advisors Pvt Ltd.
(Real Estate Advisory
services)
Moneywise
Financial Services
Pvt Ltd.
(NBFC)
SMC Comtrade Ltd.
(Commodity Broking,
Trading & Arbitrage)
SMC Capitals Ltd
(Category I Merchant
Banker)
SMC Investments &
Advisors Ltd.
(Wealth
Management)
SMC Finvest Ltd.
(Core Investment
company)
Others
Moneywise Finvest Ltd. (100%)
InduniaRealtech Ltd. (100%)
SMC Global USA Inc. (50%)
SMC Global Securities Limited
(Equities, Currency Broking, Trading & Arbitrage, Debt,
Distributionof financial products)
100% 97.58% 100% 100%
100% 85% 100%
100%
100%
15%
Promoters
Millennium
Investment and
Acquisition Co. Inc
(USA)
Signature Global
(India) Private
Limited
Cresta Fund Limited
(Mauritius)
Bennett, Coleman
and Co. Limited
Sanlam International
Investment Partners
Limited
(South Africa)
Others
58.6% 10.2% 8.4% 7.8% 3.8% 2.6% 8.6%
5
7. SMCâs Evolution
Beginnings
Launch and
Expansion of
Trading &
Distribution
Business
Continued
Product Build-
Out
Expansion Via
Strategic
Relationships
and M&A
⢠1990 â S.C. Aggarwal and
Mahesh C Gupta started
equity broking business
through Delhi Stock
Exchange
⢠1994 â SMC was
founded
⢠1995 â Equity brokerage
and arbitrage
⢠2003 â Commodity
brokerage
⢠2005 â Research services
⢠2006 â Distribution of
financial products and
insurance brokerage
⢠2006 â Overseas branch in
Dubai was established
⢠2008 â Online trading
and currency brokerage
⢠2008 â Wealth management,
investment banking and
financing
⢠2009 â Auto insurance
brokerage agreement with
Honda Cars India Limited
⢠2014 â Real estate,
mortgage and loan
advisory
⢠2016 â SMC Global IFSC acts as
a stock broker & clearing
member on derivative segment
of the India International
Exchange and NSE IFSC
Exchange in Gujarat (GIFT City)
⢠2017 â SMC Insurance POS
enroll a new distribution partner
POS approved by IRDA for selling
general insurance and life
insurance products
⢠2017 â NBFC crossed loan book
size of INR500cr in Oct 2017,
thereby qualifying to be called
SI-NBFC
6
8. $662 $688 $735
$808
$897
$991
$1,095
$1,206
2015 2016 2017 2018E 2019E 2020E 2021E 2022E
Indiaâs Dynamic Economy
âŚoffering significant opportunity to SMC
(1) Source: CIA World Factbook (2016)
(2) Eurozone member countries aggregated and shown as one economy
(3) Source: IMF World Economic Outlook Database (April 2017)
(4) Source: Reserve Bank of India
(5) Source: Reserve Bank of India â State Finances: A Study of Budgets 2016â 2017(May 2017);Indiaâs
Central Board of Excise and Customs
âŚand recently-implemented regulatory reforms to spur GDP growthâŚ
India is one of the fastest growing large economiesâŚ(1)
(Estimated 2016GDP growth rates of largest economies(2))
âŚwith increasing household savingsâŚ(3)
(Household savings, $ in billions)
Demonetization (November 2016)(4)
⢠Indian governmentdemonetized
currency notes of Rs. 1000 and
Rs. 500
â Accounted for ~87% of all
currency in circulation
⢠Aim is to promote digitization
⢠Initially caused significant cash
shortage but RBI stepped in to
provide liquidity and stability
Enhanced Transparency
Greater Digitization of
the Economy
IncreasedGDP Growth
Goods and Services Tax (July 2017)(5)
⢠Goods and Services Tax (GST)
implementedto replace multiple
state and federal taxes with one
universal tax
⢠Goods and services categorized into
multiple tax rates ranging from
0-28%
⢠More advanced electronic filing
system
⢠Aim is to simplify tax administration
Reduced Cost of Goods
More Efficient
Transport of Goods
Increased tax compliance;
One Nation â One Tax
Ease of doing business:
IncreasedBusiness
Confidence & GDP Growth
Expected Medium &
Long-Term Impact
Expected Medium &
Long-Term Impact
-3.5%
(2)
-0.8%
0.5%
1.6% 1.8% 1.9%
6.7% 7.6%
Brazil Russia
Japan United
States
United
Kingdom
Euro Zone China India
7
9. SMCâs Investment Highlights
Wide range of product and service offerings to meet diverse client needs
2
Broad and diverse distribution network with scalable infrastructure
3
Key strategic relationships driving revenue and growth
4
Recognized leader with strong corporate governance
5
Large market with significant tailwinds
1
Multiple avenues for continued growth
6
Experienced Board and Management Team
7
8
10. Diverse Product and Service Offerings
Trading and Distribution Financing Advisory
⢠We have a diverse and complementary set of product offerings, which:
ďź Creates cross-sell opportunities from existing clients
ďź Attracts new clients who seek a comprehensive financial services platform
ďź Reduces our dependence on any particular product, portfolio service or customer to achieve long-term growth objectives
ďź Allows us to exploit synergies and best practices across our offices and business lines
ďź Renders us relatively indifferent to changes in investor preferences or strategies
Meeting Our Clientsâ Expanding Needs
BROKERAGE(1)
Trading and clearing member on
BSE and NSE; commodity
brokerage & currency brokerage
DISTRIBUTION
Distribution of IPOs & Mutual
Funds, Bonds Instrumentsand
Corporate Fixed Deposits
INSURANCEBROKERAGE
Insurance brokerage for retail and
corporate clients â life & general
LENDING
Providing variety of retail &
corporate loans
NRI & FPI SERVICES
Providing services to NRI / FPI
clients (around 1,500 NRIs)
PROP ARBITRAGE DESK
Dedicated desk for exploiting
market inefficiencies using ALGO
and HFT trading
DEPOSITORYSERVICES
Depository services for equities &
commodities
(1) SMC is a member of the following exchanges: NSE â equity cash, F&O, currency F&O; BSE â equity cash, F&O, currency F&O;MSEI â currency derivatives; Commodity broker in NCDEX,MCX, ICEX;
Trading & clearing membership of DGCX Dubai; Stock broker & clearing member of Derivative segment of India International Exchanges, NSE IFSC exchange
WEALTHMANAGEMENT
Portfolio & wealth management
services, financial planning and
investment advisory
INVESTMENTBANKING
Private equity, M&A, FCCB and
other corporate advisory;
Debt, IPO and Rights Issue
REAL ESTATE ADVISORY
Real Estate advisory services to
end users, investors & developers
for residential and commercial
MORTGAGE / LOAN ADVISORY
Debt syndication and loan
facilitation to Corporate/HNI
and retail clients
FIXED INCOME BROKING
Procuring and placement of Debt
Securities to Institutional & retail
clients; Wholesale Debt Market
(Institutional broking)
9
11. Broad Distribution Network and Scalable Infrastructure
SMCâS India Presence
Presence in over 500 cities
Supported by 89 branch offices
Serving more than
1,800,000 unique clients
2,500
s u b - b r o k e r s
exclusively distribute SMCâs financial products
9,800
i n d e p e n d e n t
d i s t r i b u t o r s (1)
serve as an additional distribution channel on a
non-exclusive basis
2,950
e m p l o y e e s
employees of SMC Global Securities
SMC Corporate Office
SMC Branch Office
SMC Sub-Broker / Authorized Person
o v e r
(1) Represents the number of independent distributors that have sold our products over the 2 years ended December 31, 2017
o v e r
Scalable Infrastructure
ďź Previous investments in technology, trading and back-office infrastructure
ďź Ability to service multiple products in our offices to reduce operating costs
ďź Strong compliance procedures
ďź Branch offices with capacity to support additional sub-brokers
10
12. ⢠Strategic relationship with Punjab
National Bank (PNB) since 2009
⢠SMC provides online brokerage services to PNB
clients
⢠PNB is one of the largest banks in India
â Over 6,900 bank branches and over
$99 billion in deposits as on December 31, 2017
Key Strategic Relationships Driving Revenue and Growth
⢠Strategic relationship with Honda since
2009
⢠SMC is the exclusive pan-India auto insurance broker
for all new Honda cars sold in India
⢠Arrangement enabled SMC to sell and renew c.477,000
policies during fiscal year 2017 and c.3,71,500 policies
during period ended December 2017
(1)
(1) Specific to Honda Cars India Limited and applies to all Honda dealerships in India under the Honda Assure Insurance Program
Punjab National Bank
11
13. ⢠7 Independent and non-
executive board members
⢠Approximately 375 years of combined
industry experience
⢠Over 130 years of combined experience
serving on SMCâs board
⢠Notable board members include:
â Former Chairman and Managing
Director of Punjab National Bank (over
$5 billion market capitalization(1))
â Former Chairman of REC Ltd., an
energy finance company (over $5
billion market capitalization(1))
â Current President of ICAI
Recognized Leader
Well-regarded Board of Directors Respected investors
⢠One of the largest established financial
services providers with footprint in
Africa, Europe, India and Asia(2) and a
market cap of $10.6 billion(1)
⢠Large and diversified Indian media
company with brands across
publishing, television, internet, radio
and outdoor domains, including Times
of India and Economic Times of India(3)
Strong reputation in India
2014
Best
Commodity Broker
of the year
2014
Best Equity
Broking House â
Derivatives Segment
2015
Best
Financial
Service Provider
2015
Property
Consultant of the
Year - Residential
2016
Best NBFC in
Northern Region
2016
Achieving Market
Leadership (Order
of Merit)
2017
Best Broker with
in-house research
in Bullion industry
of the year
2017
Best performing
retail broker of
Northern region
⢠Leading internally managed closed-
end investment fund focused on
emerging market leaders / high
growth sectors
(3) Source: Company profile on LinkedIn (https://www.linkedin.com/company/bennett-coleman-and-co-ltd-times-group-)
(1) Market capitalization as of July 19, 2017based on CapitalIQ
(2) Source: Company profile on LinkedIn (https://www.linkedin.com/company/sanlam) 12
14. Multiple Avenues for Continued Growth
1
Intensify client cross-selling
2
Expand financing business
3
Further broaden geographic footprint
4
Expand services and product portfolio
through continued innovation
5
Pursue additional strategic alliances
and acquisitions
⢠Formalized cross-sellingefforts, implementednew salesforce training and
created a committee focused on improvingcross-selling
â Increased cross-sellingrate to 10% for fiscal year ended March 31, 2017
⢠Exploring an upgrade to business intelligence software
⢠Opportunity to expand our financing business to address unmet demand for
credit
⢠Expect strongdemand from new product launches such as SME loans and
medical equipment loans
⢠Leverage existing infrastructure and network to generate new business
⢠Significant opportunity to grow presence in southern and western India
⢠Focusingon Indian nationalsliving abroad via our Dubai office
⢠Started offering margin trading facilities to equity broking customers
⢠Opportunistically introduced financing services, wealth management and real
estate advisory
⢠Expect to reap future benefits from addition of new products
⢠Several existing strategic relationshipshelp drive revenue
⢠Continue to selectively pursue strategicacquisitions that expand our product
offerings and geographic footprint
13
15. Experienced Board and Management Team
Promoters
Mr. Subhash Chand Aggarwal
Chairman & Managing Director
Fellow Member, ICAI; Former Chairman of India EU
Business Promotion Council, ASSOCHAM, Former Co-
Chairman of the National Council of Capital Markets,
ASSOCHAM, 25+ years of Experience in Capital Markets
Mr. Mahesh C Gupta
Vice Chairman & Managing Director
Fellow Member, ICAI
25+ years of Experience in Capital Markets
Mr. Anurag Bansal
Member, ICAI
20+ years of Experience in Capital Markets
Mr. Vinod Kumar Jamar
Group CFO,
Fellow Member, ICAI
Mr. Ajay Garg
Member, ICAI
20+ years of Experience in Capital Markets
Mr. Suman Kumar
Executive Vice President (CorporateAffairs), Company
Secretary & Compliance Officer
Fellow Member, ICSI
Mr. Naveen N.D. Gupta
Independent & Non Executive Director
Fellow Member, ICAI; President, ICAI
Mr. Hari Das Khunteta
Independent & Non Executive Director
Fellow Member, ICAI; Former Chairman & MD, RECL
Mr. Roop Chand Jindal
Independent & Non Executive Director
Fellow Member, ICAI;
Partner in Bubber Jindal & Co. (a leading CA firm)
Mr. Chandra Wadhwa
Independent & Non Executive Director
Fellow Member, ICSI;
Fellow Member and Ex President, Institute of Cost
Accountants of India
Mr. Kundan Mal Agarwal
Independent & Non Executive Director
Fellow Member, ICAI;
Partner in K. Prasad & Company (a leading CA firm)
Mr. Satish ChandraGupta Independent
& Non Executive Director Former
Chairman & MD of PNB
Dr. Madhu Vij
Independent & Non Executive Director
Professor, FMS, DU; Former Independent Director with MOIL
Ltd., Author of various books.
Independent Directors
Executive Directors Non Executive Directors Key Management Personnel
Mr. Himanshu Gupta
Additional (Non Executive Director)
Fellow Member, ICAI, Bachelor of Commerce, DU
8 years of experience
Ms. Shruti Aggarwal
Additional (Non Executive Director)
Associate Member, ICAI, CFA, MBA London Business School
7 years of experience
14
17. Trading and Distribution Overview
Segment Description
⢠SMCâs most established business line
⢠Leading brokerage platform in India
⢠Offers a wide range of brokerage, clearing, third-party distribution and depository
services as well as low-risk arbitrage trading using algorithm-based software
⢠Strong commission-based revenue stream with a diverse product set that appeals to
changing investor preferences
⢠SMC has already expended the capital necessary to efficiently operate this business
⢠Key partnerships with Honda to sell auto insurance policies to their customers across
India(1) and with Punjab National Bank, one of the largest banks in India, to offer online
brokerage services to PNBâs retail clients
Number of Customers
(Trading Customers)
(1) Specific to Honda Cars India Limited and applies to all Honda dealerships in India under the Honda Assure Insurance Program. (2) Source: April 2017 SEBI Bulletin. (3) Source: Deloitte â Mutual Fund Industry in India from
January 2016. (4) Sources: Swiss Re Sigma â World Insurance 2015. Note: Exchange rate is INR65/US$.
475,362
504,265
525,479
FY 2016 FY 2017 30 Sep 2017
India Market Opportunity
Growth in Retail Investor Participation(2)
(Year-over-year increase in the number of aggregate investor accounts on
the NSDLand CSDL)
Mutual Fund Consumption Remains Low(3)
(2014total mutual fund AUM as a % of GDP)
39.6% 42.2%
6.6%
India
6.2%
7.3%
3.4%
Underpenetrated Insurance Market(4)
(2015total insurance premium as a % of GDP)
Global
91.0%
25.4
27.9
Accounts in millions
2016 2017
United Kingdom USA Brazil USA India
16
18. Trading and Distribution Offerings & Opportunity
Equity brokerage: Offers trading in the equities and derivative segments to middle class and high net worth clients, with 4.1%
market share across Indian exchanges. Customer base of 4,20,000+ in broking and allied services
Commodity brokerage: Provides trading and clearing of commodities such as agricultural products, gold, silver, base metals and other
energy products. Member of MCX, NCDEX and DGCX. Largest clearing and broking members of DGCX. Customer base of 67,000+
Currency brokerage: Provides trading in futures and options contracts of various currencies. c.9.9% market share with a customer
base of 83,000+
Insurance brokerage: Offers a variety of insurance products including automobile, motorcycle, life, health, and property and casualty to
individuals and corporate clients
Distribution of third-party products: Distributes financial products such as mutual fund units, public issuances of equity and debt, and
corporate and public sector bonds
Depository and clearing services: Maintains margin deposits in clearing accounts for ~290 trading members on major exchanges and provides
depository accounts to clients for holding dematerialized debt and equity instruments
Proprietary research platform: Provides technical and derivatives research on 272 companies and fundamental research on 107
companies
Low-risk arbitrage for our own account: Executes arbitrage transactions which involve the simultaneous purchase and sale of securities,
commodities or currencies, to profit from market inefficiencies
Offerings
Opportunities going forward: grow our distribution network and client base and further leverage
cross-sell opportunities among clients
17
19. Segment Description
⢠Offers a variety of loan products to individuals through Moneywise, a registered non-banking financial company (NBFC)
⢠NBFCs are registered with the Reserve Bank of India and have strict requirements:
â Capital Adequacy Ratio of 15%ď (SMCâs CAR: 46.57% as on 31/12/2017)
â Minimum of Rs. 20 million in net owned funds (SMCâs NOF: Rs. 2,287.43 million)
⢠As of December 31, 2017, SMC had a total loan portfolio of $72.2 million (with loan against property and loan against security contributing
approx.53%)
⢠Established to take advantage of lending opportunities with attractive risk/return profiles
⢠Risk management and underwriting practices have led to strong asset quality (GNPA: 1.74% and NNPA: 0.96%)
⢠12,000+ clients spread majorly across Northern India
⢠Long term Rating of ICRA: A- for INR50 crore long term bank lines
Financing Overview
Note: INR/US$ exchange rate: 65.
(1) Defined as minimum capital to risk weighted asset ratio.
38.35%
15.42%
7.08%
18.62%
20.22%
0.30% 34.75%
17.90%
2.62%
18.76%
10.95%
14.74%
28.00%
0.01%
LAP
LAS
Medical Equipment / Other Equipment
Finance of Onward Retail Lending
Secured Business Loan
Business Loan (Unsecured)
Personal Loan (Unsecured)
Consumable Durable
18
20. Financing Offerings & Opportunity
Opportunities going forward: further capitalize our NBFC business to take advantage of unmet loan demand
Offerings India Market Opportunity
Indian NBFCs have significant advantages vs.
banks
ďź Not subject to priority sector lending
requirements
ďź Greater perceived responsiveness and
flexibility
ďź May possess more lending expertise in
certain niche markets
(1) Press Information Bureau, Government of India âHousing for all by 2022âMission (June 2015)
Capital Markets Loans
â Loans to retail clients, primarily to traders and investors
â Includes loans against securities, loans against commodities and loans to
finance the purchase of newly issued public securities
Loans against Property
â Loans to both commercial and retail clients
Other Loans
â Loans against Receivables
â IPO/NCD Financing (Retail & HNI)
â Earnest Money funding in affordable housing
â Small Business Loans
â Medical Equipment Finance / Equipment Financing
â Personal Loan
â Corporate Funding
â Consumer Durable Loans
19
21. Advisory Overview
(1) Including Best Real Estate Broker of the Year 2015by Associated Chambers of Commerce of India and 2015
Segment Description
⢠Established wealth management and investment banking businesses in 2008 to complement trading and distribution
⢠Received several real estate advisory awards since the launch of our real estate advisory business in 2014(1)
⢠Primarily fee-based revenue source complements commission-driven trading business
⢠Industry tailwinds such as strong growth in high net worth population in India provide significant opportunity for this segment
⢠Industry expertise assists the financing segmentâs evaluation of the value and quality of the collateral securing our real property loans
⢠Provides services to both investors and developers on the purchase and sale of land
(Assets under Administration for the Portfolio and Wealth Management business;
$ in millions)
Client Assets Total Customers
(Total customers in Advisory segment)
Property Consultant of the Year â Popular Choice by CMO Asia
$78.6
$82.8
$86.5
FY 2016 FY 2017 Dec. 2017
9,013
9,276
9,473
FY 2016 FY 2017 Dec. 2017
20
22. Opportunities going forward: take advantage of the growing high net worth population and position SMC to
benefit from increased real estate transaction activity
Advisory Offerings & Opportunity
Wealth & portfolio management: Provides financial planning advice to
approximately 9,400 clients and offers clients mutual fund units through
agreements with third parties; also designs and manages investment
portfolios
Real estate advisory: Provides advisory services on the purchase and sale of
land, joint ventures, and arrangements for private debt / equity funding of
commercial properties. Tie-ups with majority of reputed builders, 175+
developers and 930+ real estate sub-brokers. Awarded Best Real Estate
Broker of 2015 by Assocham India and Property Consultant of the year-
Popular choice by CMO Asia (Real Estate Excellence Awards)
Mortgage and loan advisory: Advises clients on home, business, commercial
property and working capital loans. Closed approximately 900 mortgage and
loan advisory transactions in FY 2017 and approx. 200 (in 9 months). 42 tie-
ups with major foreign banks, private banks and NBFCs in India. Strong
presence in 10 major cities and 685+ mortgage distribution sub-brokers
Investment banking: Advises India-domiciled companies on a variety of
transactions including M&A, equity / debt raising, valuation assignments and
financial advisory services across a number of industries such as consumer &
retail, healthcare and financial services
(1) Source: Global Construction Perspectives and Oxford Economic: Global Construction 2030
$43
$59
$80
$94
$119
$143
$162
$184
2010 2011 2012 2013 2014 2015 2016 2017
India Market Opportunity
Outsized Growth in Real Estate Industry(1)
ďź Construction market in India is expected to grow
nearly twice as fast as the construction market in
China, becoming the worldâs third largest
construction market by 2021
ďź Urban population in India expected to increase
by 165 million by 2030
ďź âHousing for All by 2022â program acts as the
catalyst for outsized growth in the real estate
industry
Rising Assets Under Management(2)
(Registered Indian portfolio manager AUM, $ in billions)
Offerings
(2) Source: SEBI Bulletins (April 2012and 2017) 21
24. Net Income
Client Base
Impressive Financial Growth(1)
(# of unique clients, in millions)
($ in millions) ($ in millions)
($ in millions)
Strong year-over-year
growth in FY 2017
driven by:
⢠Increase in fee and
commission income
in the Trading and
Distribution
segment
⢠Increase in net
interest income
from higher loan
balances as well as
higher yield on
loans in the
Financing segment
Our growth initiatives
impacted net income
in FY 2016 as a result
of our investments in
select business
segments, including
the hiring of
additional employees
$57.7
$65.6
$82.1
$70.3
FY 2015 FY 2016 FY 2017 Dec. 2017
$83.0
$87.1
$91.5
$97.1
FY 2015 FY 2016 FY 2017 Dec. 2017
1.3
1.5
1.8 1.8
FY 2015 FY 2016 FY 2017 Sep. 2017
$6.5
$5.3
$7.1
$6.7
FY 2015 FY 2016 FY 2017 Dec. 2017
Book Value
Total Revenue
23
25. Trading and Distribution
⢠Stable growth in SMCâs
Trading & Distribution
segment
⢠Increasing brokerage
volume and IPO
distribution revenues
⢠Increased trading income
due to growth in Indian
equity markets and higher
returns on debt securities
⢠Brokerage revenue from
insurance policies sold
under the Honda Assurance
Program also contributed to
year-over-year revenue
increase (18% growth)
($ in millions)
(Insurance Policies Sold)
(Sub-Brokers added during the year)
Financial Summary Key Highlights
Expanding Base of Sub-Brokers Growing # of Insurance Policies Sold
592
667
612
FY 2016 FY 2017 Dec. 2017
678,584
837,353
504,527
FY 2016 FY 2017 Dec. 2017
FY 2016 FY 2017 Dec. 2017
Revenue $53.7 $69.6 $57.7
Growth % -- 29.6% --
Pre-Tax Income $2.9 $6.4 $6.4
Growth % -- 121.4% --
US$450mn+ cumulative AUM under
mutual funds
48,000+ running SIPs in various schemes
of mutual fund
Note: INR/US$ exchange rate: 65
24
26. ($ in millions)
Net Interest Income
Financing
⢠Loan portfolio
diversification continues to
be a focus for SMC
â Introduced medical
equipment financing in
Q4 2017
⢠Solid expansion in net
interest margin while non-
performing loans have
remained stable and
manageable
⢠In 2017 the Company
received its first credit
rating of A- (long term)
from ICRA Limited
Loan Portfolio Breakdown(1)
(End of period portfolio value; $ in millions)
Loan Portfolio
($ in millions)
Financial Summary
(1) As of December 31, 2017
Note: INR/US$ exchange rate: 65.
$42.6
$48.7
$72.2
FY 2016 FY 2017 Dec. 2017
Loan Against Property
31.6%
Finance of Onward Retail
Lending
19.1%
Loan Against Security
18.5%
Unsecured Business Loan
17.1%
Secured Business Loan
11.1%
Medical Equipment /
Other Equipment
Financing
2.3%
Unsecured Personal
Loans
0.3%
$3.1
$4.6
$5.7
FY 2016 FY 2017 Dec. 2017
FY 2016 FY 2017 Dec. 2017
Revenue $3.8 $6.1 $9.2
Growth % -- 61.8% --
Pre-Tax Income $3.1 $4.1 $5.3
Growth % -- 32.1% --
25
27. ⢠Well-positioned to
capitalize on the growing
middle class to high-net-
worth population in India
⢠Decline in revenue in FY
2017 driven by
demonetization and
cancellations of
transactions due to investor
uncertainty
Financial Summary
($ in millions)
Advisory
Total Clients
⢠Real estate advisory
services to clients on both
the buy-side (investors) and
the build-side (developers)
⢠Total assets under
administration under
wealth & portfolio
management rose to $86.5
million as of Dec 31, 2017
Revenue Client Assets
($ in millions) (Assets under Administration for the Portfolio and Wealth Management
business; $ in millions)
FY 2016 FY 2017 Dec. 2017
Revenue $8.1 $6.4 $3.3
Pre-Tax income $1.6 $0.0 ($1.2) 9,013
9,276
9,400
FY 2016 FY 2017 Dec. 2017
$8.1
$6.4
$3.3
FY 2016 FY 2017 Dec. 2017
$78.6
$82.8
$86.5
FY 2016 FY 2017 Dec. 2017
26
