1. Motilal Oswal Financial Services Limited
Motilal Oswal Financial Services Limited
BSE: 532892 ● NSE: MOTILALOFS ● Bloomberg:MOFS:IN ● Reuters: MOFS.BO
www.motilaloswal.com

2. Corporate
Overview
Businesses
Strategy
Performance
Industry facts

3. Corporate
Overview
● Group Profile & Structure
● Evolution
● Our Businesses
● Our Strengths
● Corporate Governance
● Management Team
Businesses
Strategy
Performance
Industry facts

4. Group Profile and Structure
●
Well-diversified, financial services company offering a range of financial products and services
●
Focused on wealth creation for all its customers, such as institutional clients, HNWIs and retail customers
●
Network spread over 519 cities comprising 1,546 business locations operated by our business partners and us with 792,858 total
registered customers
●
Shares listed on the Bombay Stock Exchange and National Stock Exchange in Mumbai
Motilal Oswal Financial Services Ltd.
99.95%
100%
85%
99.95% #
99.95% #
99.95% #
97.55%
Motilal Oswal
Securities Ltd.
Motilal Oswal
Investment
Advisors Pvt. Ltd.
MOPE Investment
Advisors Pvt Ltd.
Motilal Oswal Asset
Management
Co. Ltd.
Motilal Oswal
Wealth Management
Pvt. Ltd.
Aspire Home
Finance Corporation
Limited
Motilal Oswal
Commodities Broker
Private Ltd.
Institutional
Equities
Broking &
Distribution
Investment
Banking
Private Equity
Real Estate
PMS
Mutual Funds
Offshore Funds
Financial Strategy
Wealth
Management
Proposed
Housing Finance
Commodity
Broking
# through Motilal Oswal Securities Limited
Data as on Dec 2013
4

5. Evolution
Broking
Integrated Financial Services
Housing Finance*
Mutual Fund
Mutual Fund
Principal Strategies
Principal Strategies
Principal Strategies
Wealth
Management
Wealth
Management
Wealth
Management
Wealth
Management
Lending
(LAS)
Lending
(LAS)
Lending
(LAS)
Lending
(LAS)
Private Equity
Private Equity
Private Equity
Private Equity
Investment Banking
Investment Banking
Investment Banking
Investment Banking
PMS
PMS
PMS
PMS
PMS
Distribution
MF, IPO
Distribution
MF, IPO Insurance
Institutional
Equities
Distribution
MF, IPO Insurance
Institutional
Equities
Distribution
MF, IPO Insurance
Institutional
Equities
Retail broking
Retail broking
Institutional
Equities
Institutional
Equities
Distribution
MF, IPO Insurance
Institutional
Equities
Retail broking
Retail broking
Retail broking
Retail broking
1987 - 95
1996 - 2005
2006 - 2007
2008
2010
2013
*We are still in the process of obtaining necessary approvals to commence this business 5

6. Our Businesses
Broking and
Distribution
Independent
and
INSIGHTFUL
RESEARCH
Well established
DISTRIBUTION
NETWORK
Private
Equity
Asset
Management
STRONG
RELATIONSHIPS
with institutional
investors
And HNIs
Wealth
Management
HIGH CREDIBILITY
resulting in higher
cross-selling
opportunities
Institutional
Equities
Investment
Banking
Housing
Finance*
Principal
Strategies
INTEGRATED FINANCIAL SERVICES PROVIDER
*We are still in the process of obtaining necessary approvals to commence this business
6

7. Our Strengths
Strong Brand
Name
Strong
Investment
Culture
Experienced Top
Management
Strong Risk
Management
Practices
Independent
and Insightful
Research
Leadership in
Franchisee
Business
Financial
Prudence
Large
Pan-India
Distribution
Network
7

8. Corporate Governance
● MOFSL is committed to ensuring compliance with the best
practices in corporate governance
● Composition of MOFSL’s Board of Directors:
o
The Board currently consists of 6 members with 50%
composition of Independent Directors
● MOFSL has some major Board level Committees :
o
Audit Committee
o
Shareholders / Investors Grievance Committee
o
Remuneration / Compensation Committee
o
Nomination Committee
o
Risk Management Committee
o
ESOP Committee
o
Debenture Committee
Balkumar Agarwal
Mr Agarwal a retired IAS officer (1967 batch). He
has served as Additional Chief Secretary,
Secretary (Housing), Secretary (Transport),
Secretary (Industries) to the Government of
Maharashtra, and as the MD at Maharashtra
State Warehousing Corp, Maharashtra State
Financial Corp etc
Asset Liability Management Committee
o
Independent Directors
● External auditors play a role in providing an independent
assessment of MOFSL’s financial position
Praveen Tripathi
Mr Tripathi is the CEO of Magic9 Media &
Consumer Knowledge Pvt Ltd. He is the
Chairman of the National Consumer
Classification System Committee and has also
worked with Pidilite, Hansa Consulting,
Zenithmedia, Starcom/Leo Burnett etc
Vivek Paranjpe
Mr Paranjpe is a consultant in HR & strategic
management with companies like Reliance
Industries, Blackstone etc. He was the Director,
HR Operations at HP Singapore, and has
worked with Hotel Corp, Johnson & Johnson,
Hindustan Lever etc
8

9. Management Team
Chairman & Managing Director
Joint Managing Director & Co-founder
Motilal Oswal
Raamdeo Agarawal
Director
Navin Agarwal
Research
Rajat Rajgarhia
Navin Agarwal
Chief Operating Officer
Ajay Menon
Wealth Management
A.V. Srikanth
Chief Financial Officer
Sameer Kamath
Investment Banking
Ashutosh Maheshvari
Human Resources & OD
Sudhir Dhar
Asset Management
Aashish Somaiyaa
Marketing
Broking & Distribution
Vijay Goel
Institutional Equities
Private Equity
Ramnik Chhabra
Vishal Tulsyan
Principal Strategies
Srikanth Iyengar
Housing Finance
Anil Sachidanand
9

10. Building Infrastructure for the Future – Motilal Oswal Tower
● MOFSL has invested in a new Corporate Office building in Prabhadevi, Mumbai with the aim to consolidate all businesses within a single
location and leverage on group synergies.
● Total built-up area is 260,000 sq feet across 12 floors at a cost of approximately `2.80Bn (funded through internal accruals and capitalised
in balance sheet). Approximately 33% of the area would be let out in the initial years of operations
● Thus, MOFSL will be able to utilise significantly larger floor space at an incremental cost.
10

11. Corporate
Overview
Businesses
Strategy
Performance
Industry facts
● Broking & Distribution
● Institutional Equities
● Wealth Management
● Investment Banking
● Asset Management
● Private Equity
● Housing Finance*
*We are still in the process of obtaining necessary approvals to commence this business

12. Retail Broking and Distribution
Offers services to retail clients, including (a) equity broking, (b) commodity broking, (c) currency trading and (d) distribution of financial products
Customer Centric Approach
Pan-India Distribution Reach
‘Knowledge First’ for Client Engagement
● The company’s ‘Customer First’ philosophy is ● Developed a Pan-India network in 519 ● Use of simplified research products which
executed through strategic focus on:
cities across 1,546 locations (branches +
have been customized for retail clients to
franchisees), while ensuring the quality of
o Increasing distribution reach and customer
help them understand the investment ideas
the locations at the same time
segmentation on individual client’s needs
and enable them to take informed decisions
● Extensive distribution network provides
o Offering a wide bouquet of products
opportunities to cross-sell products
o Develop in-house technology for enhanced
customer experience
o Customer connect through investor seminars for
our clients and business partners
● Total registered client base of 792,858 includes
695,663 retail broking and distribution clients
● In line with the philosophy of Knowledge
Total Registered Clients
First, MOSL conducts education seminars for
792,858
773,716
746,932
709,041
investors and business partners each year on
621,215
a Pan India basis. One such series was the
multi-city investor education series ‘Investor
Ki Kahani Usi Ki Zubaani’, which saw a
healthy turnout of investors in all the cities
FY10
FY11
FY12
FY13
Dec 2013
Distribution (Locations & Cities)
Business Location
Retail Broking & Distribution Clients
550,401
628,012
657,119
679,848
695,663
568
1,397
FY10
FY11
FY12
FY13
Dec 2013
FY10
611
No of cities
552
527
519
1,644
1,579
1,484
1,546
FY11
FY12
FY13
Dec 2013
12

13. Retail Broking and Distribution
‘Partnering For Growth’ Franchisee Model
Leveraging on Technology
● Apart from branches, MOFSL also operates a ● Delivery models: Our newly developed
trading platform – LITE, is powerful, featurefranchisee-based business partner model
rich, and available in multiple versions
● Some of our Business Partners have grown
Lite-Web
LITEmanifold in terms of scale of business
● Operates ‘Upper MOST’, an interactive online
tool
for
business
development, reward, recognition for business
partners
● Online Account Opening
industry first feature
is
MOSL’s
Mobile
LITE-Desktop
● Portfolio Tracking and Review: Review and
restructuring of client portfolios and
recommends model portfolios, etc
My Motilal Oswal
Portfolio Restructuring
● Advisory Platforms: Direct dissemination of
MOSL research and recommendations, with
interactive features and customized view
Idea Dashboard 3.0
Advisory Dashboard
Radar F&O
Analytical tool
Strong Advisory Infrastructure:
● Equity strategies brought out by MOFSL
have seen good response from investors
13

14. Institutional Equities: Research is our Strength
Our Research has won Awards consistently, recent being:-
● Provides equity cash and derivatives brokerage services for
institutional clients
●
Ranked No. 2 in Best Local Brokerage, Best Overall Sales
● Client base of 543 institutions, as of Dec 2013
Service, Best for Events and/or Conferences & No. 3 in Best
● Strong research team comprising over 25 research analysts
for Most Independent Research Brokerage in the AsiaMoney
Brokers Poll 2012
covering over 200 companies across 20 sectors
● Research product portfolio encompasses economic, sector,
company and thematic reports
● Research is supported by extremely strong Sales Trading and
Corporate Access teams
●
Awards 2011, 2012 and 2013
●
Won 4 awards at the ET-Now Starmine Analyst Awards 2010
placing it amongst the Top 3 award winning brokers
●
● Conducts a number of corporate access events throughout the
year. Its Annual Investor Conference is one the largest event
Won awards at the Zee Business India’s Best Market Analyst
Ranked 2 (Best Local Brokerage) by the AsiaMoney Brokers
Poll 2010 and 2009
●
formats of its kind in this industry
Rated No.1 (Best Recommendations Mid & Small Caps) and
won awards in 3 out of 4 categories at the Starmine India
● Conducted its 9th edition in Mumbai in Sep 2013, with over 100
Broker Rankings 2009 from Thomson Reuters
leading companies interacting with more than 600 global
●
Ranked 2 (Best Indian Broker 2009) by Institutional Investor
investors, translating into 3,000+ company-investor meetings
●
No.1 Broker in ET Now-Starmine Analyst Awards 2009
14

15. Sample Research and Corporate Access
Recent Research– Providing vivid and deep insights into Indian Equities
9th Annual Motilal Oswal Global Investor Conference
15

16. Annual Wealth Creation Study
MOFSL conducted its 18th Annual Wealth Creation Study in December, 2013 on the topic “Uncommon Profits: Emergence and
Endurance”. The presentation of the study was followed by a Panel Discussion.
● Identified TCS, TTK Prestige and Asian Paints as the biggest, fastest, consistent wealth creators
● It showed that 7 of the Top 10 Wealth Creators during 2008-13 were non-cyclicals
● Wealth creators defy the common maxim “high return, high risk". At the time of purchase, the
P/E of wealth creators is lower than benchmark (i.e. lower risk), and yet the returns are higher
● Technology sector is poised to emerge as India's largest Wealth Creator in the near future
● Many young companies have emerged in the value creation zone, led by a good management
Theme of this study was on ‘Uncommon Profits: Emergence and Endurance’. Key takeways were:● Uncommon Profits in companies = Uncommon Wealth Creation in stock markets
● Successful emergence of value creators is very rare; a strong corporate-parent in a non-cyclical
business significantly increases the probability
● Endurance of value creators is mainly threatened by disruptive innovation/competition, major
regulatory changes, and capital misallocation
● State-owned companies have become marginalized in Wealth Creation with their share
collapsing from 51% in 2005 to 9% in 2013
The 18th Wealth Creation report can be
downloaded by clicking on this link
http://www.motilaloswal.com/Wealth_Cre
ation_Study/Studies/
Mr Motilal Oswal – CMD, MOFSL and
Mr Raamdeo Agrawal – Jt MD, MOFSL with
Panel Members: Mr Kenneth Andrade –
H
‎ ead
Investments, IDFC Asset
Management, Mr Anil Singhvi –
Chairman, Ican Investors and Mr Sanjoy
Bhattacharyya – Founder, Fortuna Capital
16

17. Private Wealth Management
●
Private wealth management business had an AUM of `23.2 billion, as of Dec 2013
●
Our new and improved advisory proposition ‘Motilal Oswal Private Wealth Management (MOPWM)’ with the motto ‘Responsible Advisory’ was
launched in Q4FY13. The value proposition is based on comprehensive risk profiling leading to portfolio advice which can be objectively tracked
for value addition. MOPWM also launched India’s first Advisory Index and other indices which will help clients track the value addition by an
advisor objectively - an Industry First
Launch of the new MOPWM proposition
●
Clients will have access to a multi asset class open architecture platform
●
Present in Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Ahmedabad and Pune
●
The business has been strengthened with the joining of A.V. Srikanth as CEO. Prior to this, he was
with an Indian wealth management firm, where he played a significant role in growing the vertical.
He was an integral part of the team that won several accolades for its product and advisory delivery
Our Offerings: A comprehensive menu of Multi Asset Class Advisory Solutions
Professional Money Managers
Trading
Alternative Assets
• Mutual Funds
• Equity
• Private Equity
• PMS
• Fixed Income
• Real Estate
• Alternative Invst. Funds
• Commodity & Currency
• Structured Products
Credit Solutions
Wealth Transmission
Specialized Services
• IPO Financing, ESOP Funding
• Estate Planning
• Investment Bnkg. Services
• LAS/LAP
• Trust services
• Offshore Advisory & Solutions
• Institutional Credit Solutions
• Wills
• Hedging & Insurance Advisory
Ancillary Services
• Tax Advisory
• Legal Advisory
17

18. Investment Banking
● The investment climate continues to be vitiated due to macro
uncertainties and policy paralysis. As a result, transaction closures have
been affected, though the deal pipeline remains healthy
Select Transactions
● Won the “Asia Pacific Cross-Border Deal” and the “India M&A
Investment Banker” awards in 2010 for the M&A transaction of India’s
Shree Renuka Sugars and Brazil’s Equipav SA
● Won ‘M&A Boutique Firm of the Year’ and ‘Best Mid-Market Deal of
the Year’ awards at the M&A Atlas Awards in Mumbai
● Given our strong expertise in cross border deals, we were the Lead
Sponsor for the Latin America India Investors Forum in Nov 2011. This
Forum was designed to connect corporates with institutional investors
for business relationships between India and Latin America.
M&A Atlas
Awards, 2012
Latin America India
Investors Forum, 2011
18

19. Asset Management
Portfolio Management Services business (PMS)
●
Mutual Funds business (MF)
MOSL transferred the PMS business to Motilal Oswal AMC via
slump sale with effect from Oct 2010
●
As on Dec 2013, PMS AUM was `13.4 billion
●
As per SEBI data, our PMS had a market share of 8% in terms of
discretionary-listed equity PMS assets, as of Aug 2011
PMS AUM (`Mn)
12,584
13,574
12,596
13,429
9,817
FY10
FY11
FY12
FY13
●
Mutual funds AUM across the 7 funds was `4.8 billion, as of Dec 2013
o MOSt Shares M50 ETF (M50) is India’s 1st Fundamentally Weighted
ETF based on the S&P CNX Nifty Index
o MOSt Shares Midcap 100 ETF (M100) is India’s 1st Midcap ETF
based on the CNX Midcap Index
o MOSt Shares Nasdaq 100 ETF (N100) is India’s 1st US equities
based ETF, denominated in Indian Rupees
o MOSt 10 Year Gilt Fund (10 Yr Gilt) is India’s 1st fund providing
access to 10 Year benchmark Government Bond
o MOSt Shares Gold ETF is India’s 1st Gold ETF which enables
investment as well as consumption of pure gold for retail investors
o MOSt Focused 25 Fund is investing in cos. with sustainable
competitive advantages, quality, longevity & high growth potential
o MOSt Ultra Short Term Bond Fund is investing in debt securities
and money market securities
Dec 2013
Mutual Funds AUM (`Mn)
Mutual Funds AUM (Rs Bn)
●
The AMC business has been strengthened with the appointment
of Aashish Somaiyaa as CEO. He was earlier with a leading AMC as
Head of Retail Business, where he played a significant role in
growing the sales & distribution of its offerings through retail,
banking and wealth channels across India & UAE
4,487
4,642
4,776
16%
3,740
9%
7%
19%
25%
13%
FY11
FY12
FY13
Dec 2013
11%
M-50 ETF
Midcap 100 ETF
Nasdaq 100 ETF
Gold ETF
Focus 25
Ultra Short Term
10 Year Gilt
19

20. Motilal Oswal MOSt Shares
Motilal Oswal MOSt Shares ETF Conclave
●
●
Conducted the 3rd MOSt Shares ETF Conclave in June 2013. The
objective was to demystify ETFs by discussing its advantages, and open
up discussions across manufacturers, distributors and strategists on
global trends in ETFs. It included a panel discussion on ‘Making Most of
ETFs’ and a detailed presentation of global ETF trends by Deborah Fuhr
(Partner & Co-Founder, ETFGI)
Motilal Oswal 2nd Value Investing Forum
MOAMC hosted the 2nd edition of Value Investing Forum in Oct 2012. The
topic was ‘Sources of Margin of Safety & its Importance in Value Investing’
Most Innovative Fund Awards
●
Nasdaq 100 ETF won the ‘Most Innovative ETF Asia Pacific 2011’
award at the 8th Annual Global ETF Awards 2012 in USA
●
The M50 ETF bagged the ‘Most Innovative Fund of the Year’
award at the CNBC TV18-CRISIL Mutual Fund Awards 2011
●
Launch of MOSt Shares Nasdaq 100 ETF
MOAMC became the first Indian AMC to ring the opening bell
at NASDAQ in USA during the launch of the Nasdaq 100 ETF
20

21. Private Equity
●
MOPE is an investment manager and advisor to private equity funds, and acts as an advisor and mentor to the investee companies
●
India Business Excellence Fund (IBEF) is a growth capital fund focused on the SME space with AUM of US$ 125 million, which has been fully
committed across 13 companies. The fund has partially exited two holding companies till date via secondary sales at extremely healthy
multiples. The fund has returned approximately 40% of capital to its investors so far
●
India Realty Excellence Fund (IREF) is a domestic real estate fund with total AuA at `2 billion, which has been fully committed across 7 deals.
Following full/partial exits from four projects till date, the fund has returned approximately 50% of capital to its investors so far
●
The 2nd growth capital PE fund, India Business Excellence Fund-II, has received total commitments of approximately `9.5 billion from both
domestic and offshore investors. This fund is currently evaluating several investment opportunities and has made two investments so far
●
Our 2nd real estate fund, India Real Estate Fund-II has received final approval from SEBI and is currently in fund raising mode. This is a `3
billion domestic mezzanine real estate fund with a green shoe option of `2 billion
Investment Process
Won ‘Best Growth Capital Investor-2012’ award at the
Awards for Private Equity Excellence 2013
21

22. Proposed Housing Finance - Aspire Home Finance Corporation Ltd
During Q2FY14, we invested into building a new housing finance company – Aspire Home Finance
Corporation Limited (http://www.ahfcl.com). This is being led by Anil Sachidanand, previously with
DHFL as CEO. He brings with him 22 years of rich experience in the mortgage space. We are currently
in the process of obtaining the necessary approvals for commencement of this business. It will be our
endeavor to build a high quality institution with a strong value proposition which we believe can help
us capture a sizable portion of this opportunity and add significant value for all stakeholders
Housing finance: A promising opportunity
81%
88%
48%
USA
UK
Germany
Changing social factors: Increased urbanization and rise of
nuclear families expected to boost the demand for dwelling
41%
7%
●
39%
Hong Kong
Young median age and its expected growth: Translates into
an increased working population and demand for housing
32%
Singapore
●
20%
29%
Malaysia
17%
26%
Korea
Potential in Tier II/III cities: Mortgage growth has tilted
towards tier-II/III cities in recent years
China
Represents Headroom
for Growth for India
Taiwan
‘Emerging Asia’ Peers
India
●
Low Penetration: India’s mortgage/GDP ratio improved from
4.5% in FY04 to 7% in FY12. However, it is still low vs. peers
Thailand
●
Housing Credit as a % of GDP
Other Positive developments
●
Market share of HFCs vs. Banks has increased from 26% to 35% from FY05 to FY12, on the strength of their comparatively
superior service levels, product innovation, customization and targeting of specific client segments not addressed by banks
●
HFCs to be included as eligible borrowers for financing low cost housing projects through ECBs, which should help in funding
●
Regulatory initiatives for customers, like removal of prepayment penalty and uniformity in rates for old and new clients
22

23. Corporate
Overview
Businesses
Strategy
● Size of opportunity
● Our Strategic Focus
● Progress Against Strategy
Performance
Industry facts

24. Size of Opportunity
India’s equity broking opportunity: Market size in terms of revenue pool expected to grow 6 times over the next 10 years
697
Methodology:
●
Current size of broking revenue pool estimated at `112Bn
●
Market Cap to touch US$5Tn by 2020 based on GDP:Market Cap ratio of 1:1
●
Assume trading velocity to double from current 37% to ~80% by 2020
●
This gives a expected market size of ~`697Bn by 2020, comprising `243Bn
in institutional and `454Bn in retail segment
454
6.2x Growth
112
80
243
32
FY 2010
Source: MOSL estimates
Factors that will help achieve this growth
● Sustained economic, savings
discretionary income growth
and
FY 2020E
Institutional (Rs Bn)
What Motilal Oswal is doing to create scale
Retail (Rs Bn)
Although certain external risks remain
● Increasing distribution reach across India
● High inflation and interest rates
● Using simplified research products
● Regulatory changes required DIIs to
realign their marketing strategy to
be able to channelize higher savings
● Increase in retail participation
● Client focused advisory services
● Increased ability of DIIs to mobilize
savings
● Investor education for client engagement
● Launched AMC to mobilize investments
● Global recovery reducing India’s
relative attractiveness among global
funds
● Higher issues of fairly priced IPO/FPOs
● Develop relationships with corporates
embarking on the next phase of growth
● Poor performance of IPOs post
listing
● Tech-based tools for client’s convenience
● Technology for better client experience
● Higher India allocation by global funds
● Increase in fund raising by corporates
● Tap the allocation of India focused funds
24

25. Our Strategic Focus
● Leverage research and advisory capabilities
● Develop innovative, market-access products
for the AMC platform
● Investor education and knowledge dissemination
● Grow the Investment Banking business
● Good quality Pan-India distribution network
● Strengthening Wealth Mgt’s product
● Ensure quality deal flow for Private Equity
Increase Retail /
Wealth Mgmt share
bouquet and customized advisory
● Leveraging on technology
Grow
Fee based
revenues
● Distribution of 3rd party products
KNOWLEDGE FIRST
Solid Research
Increase
Institutional
market share
● Increase Research support
Solid Advice
● Build strong institutional relationships
● Use Principal Strategies Group to maximise
returns using risk free arbitrage strategies
● Grow the Capital Markets Lending book
through wider and quality research
● Grow institutional derivatives business
Grow
Fund based
revenues
across client segments to complement our
Risk-Free Balance Sheet and
Flexible Cost Structure
strong cash equities business
● Judicious use of Capital to ensure high Return on Equity and low Leverage
● Flexible Cost structure to maintain Profitability across market cycles
25

26. Progress Against Strategy
Research
Consistently won awards for earnings estimation and best
recommendations, thus showcasing our strong research
capabilities
Retail Distribution Reach
Strong distribution network across India, while maintaining
the quality of the locations
Corporate Access
The Annual Motilal Oswal Investor Conference is
reckoned as one of the best-in-class conferences in India
for institutional investors
Wealth Management Product Bouquet
Strengthened Wealth Management’s product portfolio to
offer multiple investment options and a holistic asset
allocation for clients
Private Equity businesses
Strong on-ground relationships helped achieve a healthy
portfolio for existing funds and ensure good mobilization for
the new fund
Investor Awareness on Equity Investing
Continued its investor education initiatives and use of
simplified versions of institutional research for the retail
investors, in line with the Knowledge First philosophy
Empanelment of Institutions
Added to the number of domestic and foreign institutions
empanelled
Technology Tools and Platforms
Successfully developed and implemented a number of techbased initiatives, including in-house developments
Asset Management business
Launched innovative mutual funds, most of which were
India’s Firsts in terms of the market access provided by the
investment products strategies
Consistent Margins and Low-Risk Balance Sheet
Flexible cost structure and negligible debt levels helped
deliver consistent profit margins and strong RoE, despite
market cycles
26

27. Corporate
Overview
Businesses
Strategy
Performance
● Financial Performance
● Recent Awards
Industry facts

28. Annual Financial Performance at a Glance
Consolidated revenues (` million)
6,453
EBIDTA (` million, margin %)
39%
43%
6,008
4,711
4,661
2,770
4,729
Reported PAT (` million, margin %)
38%
34%
37%
19%
26%
1,704
FY09
FY10
FY11
FY12
FY13
FY09
Net worth (` million); ROE % (based on
Avg NW and Reported PAT)
20%
10,595
11,409
12,179
1,585
FY10
FY11
23%
22%
1,371
2,295
1,807
23%
1,744
FY12
FY13
1,039
896
FY09
FY10
FY11
1,091
FY12
FY13
Revenue Composition (%)
Net Cash (` million)
2%
5%
14%
10%
2%
7%
13%
7%
70%
5,428
3%
6%
10%
10%
71%
72%
1%
11%
17%
2%
2%
13%
21%
2%
9,460
7,939
14%
12%
9%
3,250
9%
2,772
2,710
FY10
FY11
FY12
FY13
FY09
FY10
FY11
FY12
63%
2,144
FY09
FY09
69%
FY13
FY10
FY11
Others
Funds based business
Broking & operating income
FY12
FY13
Asset management fees
Investment banking fees
*Prior figures have been regrouped wherever necessary 28

29. Consistently Increasing Dividends
2.50
2.00
35%
2.00
1.40
30%
26%
25%
1.20
0.80
0.80
13%
0.50
35%
1.50
1.50
1.00
40%
20%
17%
15%
10%
10%
7%
5%
-
0%
FY08
FY09
FY10
DPS
FY11
FY12
FY13 #
Payout*
# For FY13; `1 is paid as interim dividend + `1 is proposed dividend; Buyback has been proposed
* Payout is calculated on Adjusted PAT for the respective years

30. Latest Quarter Performance
Particulars
` million
Total Revenues
Q3 FY14
Dec 31,
2013
Q2 FY14
Sep 30,
2013
Change
(%)
Q-o-Q
Q3 FY14
Dec 31,
2013
Q3 FY13
Dec 31,
2012
Change
(%)
Y-o-Y
9M FY14 9M FY13 Change
Dec 31, Dec 31,
(%)
2013
2012
Y-o-Y
FY13
Mar 31,
2013
1,175
1,160
1%
1,175
1,150
2%
3,443
3,388
2%
4,729
EBIDTA
309
358
-14%
309
378
-18%
1,023
1,144
-11%
1,744
PBT (before E & EOI)
239
290
-18%
239
300
-20%
817
930
-12%
1,437
Adjusted PAT
162
188
-14%
162
189
-14%
535
621
-14%
969
Reported PAT
35
56
-37%
35
292
-88%
276
724
-62%
1,091
EPS - Basic
0.3
0.5
0.3
2.0
2.1
5.0
7.6
EPS - Diluted
No.of shares outstanding
(million) - FV Rs 1/share
0.3
0.5
0.3
2.0
2.1
5.0
7.6
139
139
139
145
139
145
145
E & EOI = Exceptional items & Extraordinary items, EOI = Extraordinary items
30

31. Recent Awards
Existing Businesses: Retail Broking and Distribution, Institutional Equities
'Best Performing National
Financial Advisor Equity
Broker' award at CNBC TV18
Financial Advisor Awards
2013, for the 3rd year
‘Best Equity Broker’
award at Bloomberg
UTV Financial
Leadership Awards
2012
‘Retailer of the Year
(Banking & Financial
Services)’ award at the
Retail Excellence
Awards 2012
Adjudged amongst Top
20 innovators in BFSI
space at the Banking
Frontiers Finnovity
Awards 2012
‘Best Equity Broking
House’ award for
FY11 at the Dun &
Bradstreet Equity
Broking Awards 2011
Felicitated by BSE for
being Amongst the Top
Five Performers in BSE
Star – Mutual Fund and
Amongst the Top Ten
Performers in Equity
Segment for the period
Nov 2010 – Sept 2011
New Businesses: NBFC, Asset Management, Private Equity and Investment Banking
‘Best Capital Markets and
Related NBFC’ award at
the CNBC TV18 India Best
Banks and Financial
Institutions Awards 2011
Nasdaq 100 ETF won the
‘Most Innovative ETF Asia
Pacific 2011’ award at the
8th Annual Global ETF
Awards 2012 in USA
‘Most Innovative Fund of
the Year’ award at the
CNBC TV18-CRISIL Mutual
Fund Awards 2011 for the
M-50 ETF
Investment Banking bagged
‘Asia Pacific Cross-Border
Deal of the Year’ and ‘India
M&A Investment Banker’
awards
Ranked as No. 1 Broker
in India at the ETStarmine Analyst
Awards, 2009
Others
Private Equity won
‘Best Growth Capital
Investor-2012’ award
at the Awards for PE
Excellence 2013
‘Excellence in HR through
Tech’ and ‘Excellence in
Healthcare’ awards at
Asia’s Best Employer
Brand Awards 2011 in
Singapore
‘Quality Excellence
for Best Customer
Service Result’
award at National
Quality Excellence
Awards 2013
31

32. Corporate
Overview
Businesses
Strategy
Performance
Industry facts
● Equity Participation
● Investment Banking &
Private Equity
● Mutual Funds
● Wealth Management

33. Options dip QoQ in Market ADTO; Cash/delivery slightly down
Market ADTO saw a QoQ dip due to lower volumes clocked in
options; Overall cash and cash delivery also dipped slightly (Rs Bn)
2,209
1,335
315
101
39
133
50
Source:
NSE, BSE
FY11
FY12
Options
275
92
38
1,410
1,293
FY13
Futures
76%
78%
75%
68%
330
92
39
343
95
41
274
96
40
76%
29%
57%
388
2%
5%
18%
22%
1,729
1,274
16%
10%
1,705
1,431
977
764
2%
6%
2%
4%
16% 16%
2%
5%
3%
7%
4%
1,871
1,679
With lower option volumes on a QoQ basis, the proportion of
options was slightly lower, while cash proportion saw an uptick
Q3FY13
Intraday
Q2FY14
Q3FY14
FY11
FY12
Delivery
Delivery
On a YoY basis, the proportion of delivery within cash
volumes in the market has held steady at 30%
FY13
Intraday
Q3FY13
Q2FY14
Futures
Q3FY14
Options
Proportion of options within F&O in the market has
tapered slightly owing to lower option volumes
19%
17%
30%
30%
70%
Q3FY13
70%
Q3FY14
Intraday to Cash Volumes
Source: NSE, BSE
Q3FY14
Q3FY13
81%
83%
Delivery to Cash Volumes
Source:
NSE, BSE
Futures to F&O Volumes
Options to F&O Volumes
Source: NSE, BSE
33

34. Retails’ percent picks up in Cash ADTO; FII inflows see uptick
Retail’s proportion within cash volumes has increased on a
QoQ basis, while that of FII and Prop segments dipped
7%
8%
9%
8%
15%
18%
19%
18%
22%
23%
56%
51%
8%
9%
19%
23%
1,400
1,101
22%
23%
23%
After seeing net outflows from equities during the months
from Jun to Aug, net inflows picked up in Q3FY14 owing to
strong inflows clocked in Oct and Dec months (Rs Bn)
24%
51%
49%
44%
460
437
50%
399
10
FY11
Source: NSE, BSE
FY12
DII
FY13
FII
Q3FY13
Prop
Q2FY14
FY11
Q3FY14
FY12
FY13
Q3FY13
Q2FY14
Retail
Source: SEBI
DIIs have seen net outflows from equities since the last 6
consecutive quarters; The outflow clocked this quarter was
much higher than earlier quarters, except for 4QFY13 (Rs Bn)
Growth in new demat accounts (Mn) remains low, as
primary market activities have largely dried up
8% CAGR
FY11
FY12
FY13
Q3FY13
Q3FY14
Q2FY14
1.0
Q3FY14
0.8
20.0
0.9
21.0
1.8
2.0
-44
-53
-187
-187
-291
-691
Source: NSE
19.0
17.2
15.2
FY10
FY11
Existing Accounts (Mn)
FY12
FY13
Dec-13
New Accounts (Mn)
Source: CDSL, NSDL
34

35. Though still sluggish, ECM, DCM, M&A & PE post slight QoQ uptick
ECM activity showed a marginal QoQ uptick as the Powergrid FPO issue
boosted the Additional segment; However, ECM continues to remain
dry as compared to earlier years (Rs Bn)
424
789
22
112
294
32
23
-
77
1
DCM saw a slight uptick on a QoQ basis buoyed by increase in
domestic bond issues and foreign loan segment (Rs Bn)
5316
6275
1443
1,031
1,173
1370
884
270
189
649
514
2,453
343
207
612
22
75
2,084
446
260
59
Source:
Bloomberg, BSE (for QIP)
65
FY12
FY13
QIP
55
1
Q3FY13
Q2FY14
Additional (FPO)
1
Q3FY14
IPO
M&As deals picked up slightly this quarter on a QoQ basis; On a CY
basis, cross-border deals saw increased activity while domestic
deals saw a drop; Energy, power, healthcare, industrials and
telecom clocked the highest % of deals in CY13 (US$Bn)
FY12
Loans Mandated (Forg.)
Q3FY13
Q2FY14
Loans Mandated (INR)
Q3FY14
Source:
Bloomberg
Dom Bonds
PE deal value picks up QoQ and YoY, largely due to the $420mn
Global Logic-Apax Partners deal; Average deal value picked up
as high-value deals were scarce in recent quarters (US$Bn/Mn)
8.9
17.1
8.2
5.5
Q3FY13
18.3
17.9
11.2
10.1
Source:
Thomson Reuters news article
FY13
24.8
20.0
CY13
461
249
29.9
CY12
659
2,791
2,059
7.1
Q2FY14
Q3FY14
M&A Total Deal Value in India - US$Bn
1.2
FY12
FY13
Deal Value (US$ Bn)
Q3FY13
1.9
1.7
Q2FY14
Q3FY14
Avg Deal Size (US$ Mn)
Source:: Venture Intelligence
35

36. Redemptions hit most MF segments; Liquid props up MF AUM
Redemptions seen in all segments in Q3 FY14 except in Liquid;
Equities seen net outflows in last 8 consecutive quarters (Rs Bn)
Liquid funds have led the MF AUM growth on a YTD basis; Income
and Equity saw slight growth; Dips in Gilt and Gold lowered Others
830
6,140
Liquid
Other ETF
2%
12%
49%
3%
13%
50%
3%
3%
22%
56%
51%
Q3FY13
Q2FY14
(0)
(6)
0
(27)
(92)
(2)
30
11
(2)
(41)
(136)
(412)
(5)
(10)
(2)
199
FY13
(51)
32
40
14
(2)
(144)
5
(185)
(71)
(0)
36
(6)
FY12
36%
35%
8,258
7,014
14%
51%
Gilt
Gold ETF
1%
13%
Income
526
Equity
5,872
5,923
34%
27%
24%
Q3FY14
FY10
FY11
Others
FY12
FY13
Income
Liquid / Money Market
Dec-13
Equity
Source: AMFI
Source: AMFI
Decline in Gold ETF AUM has lowered the Indian ETF assets on
YTD basis; Non-gold ETF assets also dipped marginally (US$Bn)
India’s economic slowdown has impacted its Total Net Wealth in
2012 vs 2011 (US$ Bn); While China has held its ground, net wealth
has also declined in 2012 in the broader Asia Pacific region
Total Net Wealth (USD Bn)
0.11%
69,351
2.5
0.08%
0.07%
1.7
0.05%
80,233
0.13%
1.2
52,035 50,724
1.7
0.5
2009
67,291 68,173
19,628 20,190
2010
India ETF AUM ($Bn)
2011
2012
Nov-13
India ETF % to Global ETF AUM
Source: AMFI/Blackrock report
3,892
9,456 8,696
3,193
India
China
2011
Asia-Pacific
Europe
Latin
America
North
America
2012
Source: Hubbis report
36

37. This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or
solicitation for the purchase or sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your
responsibility alone and MOFSL and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences
of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained
herein, but do not represent that it is accurate or complete. MOFSL or any of its subsidiaries or associates or employees shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The
recipient of this report should rely on their own investigations. MOFSL and/or its subsidiaries and/or directors, employees or associates may have
interests or positions, financial or otherwise in the securities mentioned in this report.
Thank You
Contact:
Sameer Kamath
Chief Financial Officer
Motilal Oswal Financial Services Limited
Tel: 91-22-3982-5500 / 91-22-39825554
Fax: 91-22-2282-3499
Email: sameerkamath@motilaloswal.com
Sourajit Aiyer
Sr. Manager–Investor Relations
Motilal Oswal Financial Services Limited
Tel: 91-22-3982-5500 / 91-22-39825510
Fax: 91-22-2282-3499
Email: sourajit.aiyer@motilaloswal.com /
investorrelations@motilaloswal.com