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Real estate NBFC

Provides an integrated financial solution to real estate developers with major focus on real estate project financing. read more - http://bit.ly/2pqSK2Q

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Real estate NBFC

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  1. JM Financial Limited Q4 FY17 Results Update May 02, 2017

  2. Safe Harbour This presentation and the following discussion may contain “forward looking statements” by JM Financial Limited (“JM Financial” or “JMFL” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives are based on the current beliefs, assumptions, expectations, estimates and projections of the management of JMFL about the business, industry and markets in which JMFL operates. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond JMFL’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not and should not be construed as a representation of future performance or achievements of JMFL. In particular, such statements should not be regarded as a projection of future performance of JMFL. It should be noted that the actual performance or achievements of JMFL may vary significantly from such statements. 2

  3. Table of Contents Q4 FY17 Result Update – Group Performance Q4 FY17 Result Update – Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 3

  4. Key Highlights – Consolidated Performance Revenues Revenues PBT PBT Net Profit Net Profit EPS* EPS* ROA* ROA* ROE* ROE* Q4 FY17 Q4 FY17 725 Cr 326 Cr 151 Cr 1.90 1.4% 4.7% 53% 62% 33% 475 Cr 201 Cr 114 Cr 1.44 1.4% 4.0% Q4 FY16 Q4 FY16 Revenues Revenues PBT PBT Net Profit Net Profit EPS EPS ROA ROA ROE ROE FY17 FY17 2,359 Cr 972 Cr 470 Cr 5.93 4.7% 15.6% 40% 40% 17% 1,685 Cr 693 Cr 400 Cr 5.08 5.4% 15.3% FY16 FY16 * Not annualized ARC figures in the statement of profit and loss are consolidated on line by line basis from October 1, 2016. The ARC was an “Associate” of JM Financial Limited till September 30, 2016. 4

  5. Key Highlights – Quarterly Trend Gross Revenues (Rs Cr) Net Profit (Rs Cr) 725 151 594 564 119 115 114 477 475 86 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Leverage Analysis (Rs Cr) Return Ratios (%)* 2.5 4.7% 4.0% 2.1 2.1 3.9% 3.9% 1.9 1.8 4,336 3.0% 4,199 4,027 3,473 3,594 1.4% 1.4% 1.3% 1.2% 1.1% 10,802 8,401 8,718 6,671 6,586 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 D / E Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 ROE % Q4 FY17 Debt Equity + Minority Interest ROA % * Not annualized ARC figures in the statement of profit and loss are consolidated on line by line basis from October 1, 2016. The ARC was an “Associate” of JM Financial Limited till September 30, 2016. 5

  6. Consolidated Profit & Loss Statement Particulars (Rs Cr) Q4 FY17 Q4 FY16 YoY % 53% Q3 FY17 QoQ % 22% 725 594 475 Gross Revenue 22 19% 21 3% 18 Sub-brokerage 80 12% 81 -1% 71 Employee cost 77 97% 41 86% 39 Operating cost 214 54% 199 7% 139 Finance cost 6 22% 6 4% 5 Depreciation 326 62% 245 33% 201 PBT 116 100% 82 42% 58 Tax Expense 210 47% 164 28% 143 PAT 0 -96% 0 -25% 5 Share in profit of Associates 210 42% 164 28% 148 PAT before Minority Interest -59 73% -45 31% -35 Minority Interest 151 33% 119 27% 114 PAT after Minority Interest ARC figures in the statement of profit and loss are consolidated on line by line basis from October 1, 2016. The ARC was an “Associate” of JM Financial Limited till September 30, 2016. 6

  7. Consolidated Profit & Loss Statement Particulars (Rs Cr) FY17 2,359 FY16 1,685 YoY % 40% Gross Revenue 92 77 20% Sub-brokerage 306 264 16% Employee cost 184 118 55% Operating cost 782 512 53% Finance cost 23 20 15% Depreciation 972 693 40% PBT 335 222 50% Tax Expense 637 470 35% PAT 12 55 -78% Share in profit of Associates 649 526 23% PAT before Minority Interest -179 -125 43% Minority Interest 470 400 17% PAT after Minority Interest ARC figures in the statement of profit and loss are consolidated on line by line basis from October 1, 2016. The ARC was an “Associate” of JM Financial Limited till September 30, 2016. 7

  8. Consolidated Balance Sheet As at As at Particulars (Rs Cr) March 31, 2017 March 31, 2016 Equity and Liabilities Shareholders’ funds 3,227 2,804 Minority interest 1,109 669 Borrowings 10,802 6,671 Other liabilities and provisions 1,315 812 TOTAL 16,453 10,956 Assets Loan book (Including Investment in NCD’s) 11,343 7,214 Security receipts 1,641 7 Investment in associates 7 269 Treasury fund 1,377 1,962 Arbitrage and trading book 130 316 Fixed assets 383 340 Other assets 848 1,571 TOTAL 16,453 10,956 Consequent upon JM Financial Asset Reconstruction Company (the ARC) becoming a subsidiary of the JM Financial Limited w.e.f. September 30, 2016, the figures in the balance sheet are consolidated on a line by line basis on March 31, 2017 8

  9. Lending book Profile Loan Book (Rs Cr) NIM Analysis (%) 11,343 7,215 7,334 8,479 8,990 1,561 1,676 808 14.9% 14.8% 846 14.4% 14.2% 14.1% 1,500 563 593 1,443 1,102 993 10.1% 9.8% 9.3% 9.3% 9.2% 8,106 6,682 6,190 5,670 5,629 7.7% 7.5% 7.4% 7.1% 6.9% Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Real Estate Capital Market Corporate Yield % COF % NIM % Gross & Net NPA (%) Return Ratios* & Capital Adequacy (%) 0.3% 28.8% 27.6% 27.3% 26.8% 24.1% 0.2% 0.2% 0.2% 0.1% 5.0% 4.8% 4.8% 4.6% 0.2% 3.9% 0.1% 1.4% 1.4% 1.3% 1.2% 1.1% 0.0% 0.0% 0.0% Q2 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q3 FY17 Q4 FY17 ROA % ROE % CRAR % Gross NPA % Net NPA % * ROA and ROE Not annualized 9

  10. Borrowing Profile Borrowing Breakup – March 2017 Borrowing Breakup – March 2016 Short Term Loans from Banks 351 3% Others 165 2% Others 551 8% Short Term Loans from Banks 397 6% Short Term 50% Short Term 60% Terms Loans 2,349 22% Long Term 40% Commercial Papers 4,863 45% Commercial Papers 3,060 46% Terms Loans 1,471 22% Long Term 50% Non Non Convertible Debentures 3,074 28% Convertible Debentures 1,192 18% Total: Rs 10,802 Cr Total: Rs 6,671 Cr Strong Credit Rating: • Long term debt rating: – CRISIL AA STABLE – ICRA AA STABLE – India Ratings AA STABLE • Short term debt rating: – CRISIL A1+ – ICRA A1+ Near term focus on diversifying sources of funds and lenders’ profiles Near term focus on diversifying sources of funds and lenders’ profiles Consequent upon JM Financial Asset Reconstruction Company Limited (the ARC) becoming a subsidiary of the JM Financial Limited w.e.f. September 30, 2016, the figures in the balance sheet are consolidated on a line by line basis on March 31, 2017 10

  11. Table of Contents Q4 FY17 Result Update – Group Performance Q4FY17 Result Update – Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 11

  12. Sustainable growth – Oriented portfolio Revenue & PBT in ` ` ` ` Cr. • Corporate Finance Advisory M&A Advisory – domestic & cross border Private Equity Synd Equity Capital Markets - Debt Capital Markets Equity Research, Sales & Trading Wealth Management Financial Products Distribution 41% 19% 41% 16% 37% 24% 29% 11% 27% 15% • JM Financial is a four decade old institution founded by Mr. Nimesh Kampani Investment Banking, Securities and Wealth Management • 639 522 • 495 429 408 144 124 79 47 45 • • • • FY13 FY14 Revenue FY15 FY16 FY17 PBT • Servicing clients across the financial services spectrum 53% 72% 53% 71% 57% 67% 64% 79% 69% 80% • • • • Margin Financing Loan against property Loan against Shares Broker Funding • • • • Commercial Real Estate Debt Restructuring ESOP Funding Asset Reconstruction* 1,625 1,079 Fund based activities 806 779 552 529 549 347 200 183 • PAN India Presence FY13 FY14 FY15 FY16 FY17 Revenue PBT • Firm four-decade footprints - proven track record of growth & sustainability 3% 1% 3% 1% 3% 3% 5% 8% 4% 6% 89 86 57 47 56 Asset 27 • Mutual Funds 29 18 Management 2 4 FY13 FY14 FY15 FY16 FY17 • Pioneered innovative products in the financial services space Revenue PBT 3% 6% 3% 7% 2% 3% 1% 1% 0% -1% Alternative Asset Management 30 27 27 19 • • Real Estate Fund Private Equity Fund 16 15 13 4 4 • Trusted & preferred partner – client centric business model FY13 FY14 FY15 FY16 FY17 (9) Revenue PBT 319 214 • Acquisition of Bank NPA’s and resolution thereof (Revenue and PBT from October 1, 2016 is part of Fund based activities) Asset 158 120 94 89 75 61 60 Reconstruction Business 33 FY13 FY14 FY15 FY16 H1 FY17 Revenue PBT • ARC forming part of Fund based activity post it became subsidiary with effect from September 30, 2016. % contribution of consolidated revenue % contribution of consolidated PBT 12

  13. JM Financial Limited In Rs Cr Fund based activities – Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd JM Financial Asset Recons. Co. Ltd Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Revenue Net Profit Net worth Loan book Net Interest Margin Total assets ROE(not annualized) ROA(not annualized) Debt / Equity Ratio Ownership 172 51 1,343 5,499 6.1% 5,957 3.8% 1.0% 3.36 99.27% 136 52 1,206 3,143 5.6% 4,309 4.3% 1.2% 2.46 98.49% Revenue Net Profit Net worth Loan book Net Interest Margin Total Assets ROE(not annualized) ROA(not annualized) Debt / Equity Ratio Ownership 223 79 1,413 5,658 8.7% 5,691 5.7% 1.5% 2.93 50.01% 161 58 1,136 4,074 9.6% 4,207 5.3% 1.6% 2.61 50.01% Revenue Net Profit Net worth AUM Total assets ROE(not annualized) ROA(not annualized) Debt / Equity Ratio Ownership 83 25 580 41 9 525 9,820 1,340 1.8% 0.8% 1.46 50.00% 11,874 1,810 4.5% 1.5% 2.01 50.01% Fee Based activities – Subsidiaries IWS Business(2) Asset management Alternative asset management Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Revenue Net Profit Loan book Wealth AUM Research Coverage Capital Employed ROE(not annualized) Ownership 223 43 164 143 18 Revenue 26 23 Revenue 1 4 Net Profit 14 10 Net Profit -2 1 - Quarterly Avg AUM 13,668 16,161 23,664 169 639 6.9% 100% 26,958 179 560 3.2% 100% AUM 655 773 Capital Employed 229 183 Capital Employed 81 83 ROE(not annualized) 6.7% 5.6% ROE(not annualized) - 1.7% Ownership 100% 100% Ownership 53.47% 53.47% Note 1. 2. Figures mentioned above are based on standalone financials IWS Business - Investment Banking, Wealth Management and Securities Business 13

  14. JM Financial Limited In Rs Cr Fund based activities – Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd JM Financial Asset Recons. Co. Ltd FY17 788 277 1,413 5,658 8.8% 5,691 21.8% 5.6% 2.93 50.01% FY16 519 198 1,136 4,074 10.4% 4,207 19.0% 6.5% 2.61 50.01% FY17 706 197 1,343 5,499 5.8% 5,957 15.5% 3.8% 3.36 99.27% FY16 559 167 1,206 3,143 6.0% 4,309 14.5% 3.8% 2.46 98.49% FY17 224 FY16 319 108 525 9,820 1,340 23.0% 7.4% 1.46 50.00% Revenue Net Profit Net worth Loan book Net Interest Margin Total Assets ROE (annualised) ROA (annualised) Debt / Equity Ratio Ownership Revenue Net Profit Net worth Loan book Net Interest Margin Total assets ROE(annualised) ROA(annualised) Debt / Equity Ratio Ownership Revenue Net Profit Net worth AUM Total assets ROE(annualised) ROA(annualised) Debt / Equity Ratio Ownership 55 580 11,874 1,810 9.9% 3.5% 2.01 50.01% Fee Based activities – Subsidiaries IWS Business(2) Asset management Alternative asset management FY17 639 FY16 495 FY17 FY16 FY17 FY16 Revenue Net Profit Loan book Wealth AUM Research Coverage Capital Employed ROE(annualised) Ownership Revenue 89 86 Revenue 4 13 95 54 Net Profit 44 44 Net Profit -9 4 164 - Quarterly Avg AUM 13,668 16,161 23,664 169 639 15.9% 100% 26,958 179 560 9.3% 100% AUM 655 773 Capital Employed 229 183 Capital Employed 81 83 ROE(annualised) 22.2% 28.7% ROE(annualised) - 4.5% Ownership 100% 100% Ownership 53.47% 53.47% Note 1. 2. Figures mentioned above are based on standalone financials IWS Business - Investment Banking, Wealth Management and Securities Business 14

  15. Segment performance Segment revenue (Rs Cr) Q4FY17 Q3 FY17 QoQ Q4 FY16 YoY Investment Banking, Wealth Management and Securities Business 223 148 50% 143 55% Fund Based Activities 478 425 13% 297 61% Alternative Asset Management 1 1 N/M 4 N/M Asset Management 26 22 20% 23 14% Others 74 32 134% 51 46% Total Segment Revenue 802 627 28% 518 55% Less: Inter - segmental revenue 77 33 137% 43 78% Total Revenue 725 594 22% 475 53% Segment PAT (Rs Cr) Q4 FY17 Q3 FY17 QoQ Q4 FY16 YoY Investment Banking, Wealth Management and Securities Business 43 20 111% 18 135% Fund Based Activities 103 93 11% 85 21% Alternative Asset Management -2 -2 N/M 1 N/M Asset Management 8 6 31% 5 45% Others -1 2 N/M 4 N/M Total 151 119 27% 114 33% ARC figures in the statement of profit and loss are consolidated on line by line basis from October 1, 2016. The ARC was an “Associate” of JM Financial Limited till September 30, 2016. 15

  16. Segment performance Segment revenue (Rs Cr) FY17 FY16 YoY Investment Banking, Wealth Management and Securities Business 639 495 29% Fund Based Activities 1,625 1,079 51% Alternative Asset Management 4 13 N/M Asset Management 89 86 4% Others 213 194 10% Total Segment Revenue 2,570 1,866 38% Less: Inter - segmental revenue 211 181 16% Total Revenue 2,359 1,685 40% Segment PAT (Rs Cr) FY17 FY16 YoY Investment Banking, Wealth Management and Securities Business 95 54 77% Fund Based Activities 360 315 14% Alternative Asset Management -9 4 N/M Asset Management 25 25 - Others -2 3 N/M Total 470 400 17% ARC figures in the statement of profit and loss are consolidated on line by line basis from October 1, 2016. The ARC was an “Associate” of JM Financial Limited till September 30, 2016. 16

  17. Investment Banking, Wealth Management & Securities business Investment Banking Wealth Management Securities business Wealth AUM of Rs 23,664 Cr with strong team of 67 wealth advisors Worldwide institutional reach - dominant global & local institutional franchise ? ? ? ? ? ? ? ? • • • Over 4 decades of leadership - ECM / DCM / Corp. Fin. / M&A Advisory Private Equity Syndication ? ? ? ? Presence - Mumbai, Delhi, Bangalore, Ahmedabad, Pune, Kolkata & Hyderabad Institutional distribution strength - We cover 151 funds across regions ? ? ? ? ? ? ? ? Innovative structuring and execution of complex, challenging deals and restructuring of corporate groups & businesses ? ? ? ? Client-oriented approach, customised long- term asset allocation strategy, unbiased investment solutions Institutional Equities offices at Singapore and New York ? ? ? ? ? ? ? ? Strong long-term Indian Corporate relationships ? ? ? ? Extensive research coverage of 169 companies Client service across all segments - Investment Banking, Corporate Finance etc. Strong track record of landmark M&A transactions ? ? ? ? ? ? ? ? ? ? ? ? Best-in-Class Execution Team with focus on client satisfaction ? ? ? ? ? ? ? ? Focus on growing discretionary assets ? ? ? ? Lending book stood at Rs.164 Cr Ranked No 1 in M&A & Capital Markets as per Merger market and Prime Database for FY 2017 Over 8,200 active IFDs Coverage of broking segment - 116 cities Avg. daily turnover in Q4 FY17 – Rs.3,464cr, (incl. cash segment of Rs.1,000 cr) ? ? ? ? ? ? ? ? ? ? ? ? Particulars (Rs Cr) Capital Employed Revenue Employee Cost Finance Cost Other Expenses PBT PAT Q4 FY17 639 223 58 16 80 69 43 Q4 FY16 560 143 60 11 47 25 18 YoY % 14% 55% -4% 53% 65% 180% 135% Q3 FY17 599 148 50 16 54 27 20 QoQ % 7% 50% 16% 2% 45% 154% 111% FY17 639 639 203 55 237 144 95 FY16 560 495 186 54 176 79 54 YoY % 14% 29% 9% 1% 35% 81% 77% ROE (%) 6.9% 3.2% 3.4% 15.9% 9.3% 17 * ROE for the quarter is not annualized and Year to date is annualized

  18. Investment Banking, Wealth Management & Securities business Wealth Management & Securities business Investment Banking ? Sole financial advisor to Geometric Limited on composite scheme of arrangement involving demerger of its business excluding its 58% stake in 3DPLM Software Solutions Limited (3DPLM) to HCL Technologies Limited and eventual merger of Geometric into 3DPLM. ? Slump of hospitals business of Fortis Malar Hospitals Limited (FMHL) into Fortis Healthcare Limited (FHL); demerger of diagnostics business of FHL into FMHL ? Financial advisor on sale of Titawi Sugar Complex to Indian Potash Limited ? Financial advisor to TransUnion for increasing its stake in TransUnion CIBIL Limited ? Fairness Opinion and Financial Advisor to Adani Ports on Scheme of Arrangement on transfer of marine services business of Adani Ports and Special Economic Zone (APSEZ) ? Fairness Opinion to the board of directors of Mukand Limited on the scheme of arrangement between Mukand Limited, Mukand Vijayanagar Steel Limited and Mukand Alloy Steels Private Limited and their respective shareholders and creditors. ? Financial advisor to Fino Paytech Limited on stake sale ? Financial advisor for minority stake sale of commercial assets portfolio of the K Raheja Group to Blackstone ? Financial advisor to Goldman Sachs and KKR for exit in TVS Logistics Services to CDPQ, TVS family members and management for Rs 1,235 crore ? Financial advisor to Canara Bank for stake sale in Can Fin Homes to GIC for Rs 754 crore ? Financial advisor to BSCPL Infrastructure for sale of its road asset BSCPL Godhra Tollways to India Infrastructure Fund II for Rs 306 crore ? Financial advisor to Wisemore Advisory (Mr. Sumant Sinha) for structured finance of Rs 280 crore from Piramal Finance ? Book Running Lead Manager to the IPO of Avenue Supermarts Ltd – Rs 1870 crore ? Book Running Lead Managers to the QIP by Hindalco Industries Limited-Rs. 3,350 crore Wealth Management AUM (Rs Cr) 26,958 23,755 23,664 21,895 22,337 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Average Daily Turnover (Rs Cr) 2,464 2,400 2,233 1,734 1,536 1,000 790 714 615 591 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Avg Cash (Rs. Cr) Avg FAO (Rs. Cr) Equity Market Share on NSE (%) 3.20 3.12 3.09 2.99 2.83 0.78 0.72 0.67 0.67 0.64 0.64 0.51 0.58 0.55 0.55 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Cash Market Share FAO Market Share Overall Market Share 18

  19. Fund Based Activities – JM Financial Products Loan Book (Rs Cr) Corporate / Wholesale lending & Loan against Shares • This business is undertaken by JM Financial Products Ltd. – 99.3% owned NBFC of the JM Financial Group. • It enjoys the highest short-term credit rating of A1+ from CRISIL as well its “CRISIL AA/ Stable” rating for long term NCD issuances and bank loans. 5,499 1,476 4,122 3,977 709 742 3,206 3,143 Lending to clients of traditional businesses Lending to new clients using Technology as enabler 1,512 522 483 1,500 1,443 993 1,102 Corporate clients Loan book Rs.1,476 Cr • Corporate loans • Structured loans • Bridge loans • Acquisition financing • Promoter loans • Partner with new age Fin tech platforms with 3-5 year view 2,511 Investments Rs.7 Cr 1,914 1,791 1,667 1,583 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Real Estate Capital Market Corporate • Loan against Property • Loan against Security • ESOP Funding • IPO Financing • Broker Funding • Margin Trade Funding Wealth Clients Loan book Rs.1,512 Cr • Loans to SME with robust credit analysis & recovery mechanism SME Lending* Return Ratios & Capital Adequacy (%) RE Clients Loan book Rs.2,511 Cr 30.6% 28.4% 27.2% • Overflow of loans from RE lending arm 26.3% • Provide home loans to retail customer with a focus on affordable segment (Filed application with NHB) 21.1% Housing Finance* 4.3% 4.1% 4.1% 3.8% 3.2% 1.2% 1.2% 1.1% 0.9% 1.0% Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 ROA % ROE % CRAR % NBFC is notified under SARFAESI Act 19

  20. Fund Based Activities – JM Financial Credit Solutions Loan Book (Rs Cr) Real Estate Lending • This business is undertaken by JM Financial Credit Solutions Ltd. – 50.01% owned NBFC of the JM Financial Group. • Vikram Pandit & Associates own 49.99% stake in form of a long-term strategic partnership. 5,658 63 4,832 4,462 63 4,150 4,074 63 63 113 5,595 Provides an integrated financial solution to real estate developers with major focus on real estate project financing. ? 4,769 4,399 4,087 3,961 Lending book has grown from Rs 1,844 cr in the beginning of FY16 to Rs 5,658 cr as on 31stMarch 2017 which includes Rs.5,595 cr real estate. ? Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Real Estate Corporate and Others • 60 groups – significant focus on repeat business • Most of the clients with over 25 years of experience in the industry • Focus on Tier I markets – Mumbai, Bengaluru, Pune and Chennai – Loan disbursements of 49% in Mumbai, 22% Bengaluru, 13% Pune, 16% Chennai and others Return Ratios & Capital Adequacy (%) ? 27.4% 27.4% 27.1% 26.8% 24.9% • 88% of the book is cashflow backed lending • 80% of the book is against residential projects Prominent Relationships – Kalpataru, RMZ, Embassy, Kanakia, Peninsula, Adarsh, Goel Ganga, Rajesh Lifespaces and Lodha amongst others. 5.9% 5.7% 5.5% 5.3% ? 4.6% 1.6% 1.6% 1.5% 1.5% 1.2% Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 ROA % ROE % CRAR % NBFC is notified under SARFAESI Act 20

  21. Fund Based Activities – Asset Reconstruction Business Overview Long Term Positive Drivers Long Term Credit Rating of AA- and Short Term Credit Rating of A1+ by CRISIL and ICRA. Comfortable gearing of 2x with ~47% medium / long term debt • RBI’s supervisory and corrective actions over bank NPA’s are positive steps aimed at faster resolution of bad debts of the Banking system and are also expected to keep pushing stressed assets to ARCs ? ? ? ? ? ? ? ? Bank’s to sell-down This Management Fees, Interest income and Upside / Yield business has multiple income streams like ? ? ? ? • Recent guideline on disclosure requirements on any major divergence in reporting of NPAs by Banks further emphasizes the resolve of RBI to improve the stretched NPA problem Current AUM of ~Rs 11,874 Cr comprising Corporate Accounts and Corporate/SME/ Retail Portfolios ? ? ? ? • Insolvency and Bankruptcy Code - provides for a specialized forum to oversee all insolvency and liquidation proceedings Business related activities such as Financial & Legal due diligence for acquisitions, resolutions and document storage etc are conducted by only in-house resources and not outsourced ? ? ? ? ? ? ? ? • Capital stimulus to the sector’s capital requirement commitments by global players adding Focus on Restructuring and Revival of Corporate Accounts. ? ? ? ? • With the various regulatory measures, the outlook for the business remains promising Particulars (Rs Cr) Q4 FY17 Q4 FY16 YoY % Q3 FY17 QoQ % FY17 FY16 YoY % Capital Employed 580 525 10% 554 5% 580 525 10% Revenue 83 41 102% 47 77% 224 319 -30% PBT 39 12 225% 12 225% 84 158 -47% PAT 25 9 177% 8 212% 55 108 -49% ROA (%) 1.5% 0.8% 0.5% 3.5% 7.4% ROE (%) 4.5% 1.8% 1.4% 9.9% 23.0% 21

  22. Asset Reconstruction AUM (Rs Cr) Asset Acquisitions (Rs Cr) 1,635 1,503 1,283 1,226 1,200 241 229 170 92 0 9,820 9,792 11,874 11,299 10,351 1,488 984 653 615 0 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 ARC's AUM JM's share in ARC's AUM Assets Acquired by ARC JM's share in acquisition Net Profit (Rs Cr) Return Ratios (%)* 25 4.5% 2.4% 13 9 1.4% 1.8% 9 1.7% 1.5% 8 0.9% 0.8% 0.7% 0.5% Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 ROE % Q4 FY17 ROA % * ROA and ROE Not annualized 22

  23. Fund Based Activities (including ARC)* Particulars (Rs Cr) Q4 FY17 Q4 FY16 YoY % Q3 FY17 QoQ % FY17 FY16 YoY % 3,241 2,558 27% 3,145 3% 3,241 2,558 27% Capital Employed 11,179 7,214 55% 8,990 24% 11,179 7,214 55% Loan Book 478 297 61% 425 13% 1,625 1,079 51% Gross revenue 193 126 53% 180 7% 707 450 57% Interest Expense 285 171 66% 245 17% 918 629 46% Net Interest Income 35 10 266% 34 3% 120 73 65% Operating Expenses 10 3 273% 6 84% 19 8 151% Provisions / Bad Debts 239 159 51% 205 17% 779 549 42% PBT 84 49 72% 71 18% 271 184 48% Tax PAT before Minority Interest Minority Interest Share of Profit from Associates PAT after Minority Interest 156 110 41% 133 17% 508 365 39% -53 -30.0 76% -40 31% -158 -104 52% 0 5 -100% 0 0% 11 54 -80% 103 85 21% 93 11% 360 315 14% *ARC figures in the statement of profit and loss are consolidated on line by line basis from October 1, 2016. The ARC was an “Associate” of JM Financial Limited till September 30, 2016. 23

  24. Alternative Asset Management Private Equity: Real Estate: Alternative Asset Management AUM (Rs Cr) • AUM on March 31, 2017 – Rs 475 Cr. • AUM on March 31, 2017 – Rs 180 Cr. Total AUM 708 680 655 773 751 • No. of investments – 13. • No. of investments – 16. • No. of Exits – 7 full • No. of Exits – 6 full and 3 part. 233 233 233 205 180 • Fully drawn down & invested • Fully drawn down & invested • Amount distributed till date – Rs 722 Cr. • Amount distributed till date – Rs 264 Cr. 540 518 475 475 475 • PE fund II has received SEBI registration as Cat II – AIF, and in process of raising capital Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Particulars (Rs Cr) Capital Employed Revenue Q4 FY17 81 1 Q4 FY16 83 4 YoY % -3% -75% Q3 FY17 79 1 QoQ % 3% 55% FY17 81 4 FY16 83 13 YoY % -3% -66% Employee Cost 3 1 98% 2 54% 8 5 64% Other Expenses 0 1 -90% 1 -91% 5 4 40% PBT PAT -2 -2 2 1 - - -2 -2 -9 -9 4 4 - - ROE (%) - 1.7% - - 4.5% * ROE for the quarter is not annualized and Year to date is annualized 24

  25. Asset Management Asset Management AUM (Rs Cr) Mutual Fund: • Quarterly Average AUM (QAAUM) – Rs 13,668 cr. 12,756 13,668 16,161 13,612 13,522 • Rank (QAAUM) – 18 among 41 Mutual Funds. • Market Share – 0.75%. 6,081 • 17 Schemes categorized as Long Term Debt, Short Term Debt, Balance, Equity Arbitrage and Equity. 6,873 6,677 7,024 6,503 • Investor reach – 1,35,025 base, 17 branches & 81 service centres. 10,080 6,739 6,845 6,253 6,644 • The Board of Directors of JM Financial Asset Management Limited has approved the buy-back of up to 10% of the outstanding equity capital subject to the necessary approvals as may be required. Q4 FY16 Q1 FY17 Q2 FY17 Equity Q3 FY17 Debt Q4 FY17 Note: Equity AUM for Q4 FY17 include arbitrage fund of Rs. 3,227 Cr Particulars (Rs Cr) Capital Employed Revenue Employee Cost Other Expenses PBT PAT Minority Interest Q4 FY17 229 26 4 3 19 14 -7 Q4 FY16 183 23 8 2 12 10 -5 YoY % Q3 FY17 214 22 5 2 14 11 -5 QoQ % FY17 229 89 22 10 57 44 -21 FY16 183 86 22 7 56 44 -21 YoY % 25% 4% 0% 34% 2% 0% 0% 25% 14% -49% 45% 53% 48% 48% 7% 20% -22% 24% 36% 34% 34% Share of Profit from Associates 0 0 0 1 1 -10% -1% -16% 46% -25% 31% PAT after Minority Interest 8 5 6 25 25 ROE (%) 6.7% 5.6% 5.3% 22.2% 28.7% * ROE for the quarter is not annualized and Year to date is annualized 25

  26. Table of Contents Q4 FY17 Result Update – Group Performance Q4 FY17 Result Update – Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 26

  27. Organisational Structure JM Financial Limited Core Investment Holding Co. 100% 100% 53.57% 99.27%1 50.01% 50.01%2 100% 100% 100% JM Financial Institutional Securities Ltd. JM Financial Asset Management Ltd. JM Financial Asset Reconstruction Co. Ltd. JM Financial Credit Solutions Limited JM Financial Properties and Holdings Ltd. JM Financial Investment Managers Ltd Infinite India Investment Mgmt Ltd. JM Financial Services Ltd. JM Financial Products Ltd. (Merchant Banking & Institutional equity) (Stock Broking & Investment Advisory) (Private Equity Asset Mgmt.) (Real Estate Asset Mgmt) (Property Holding) (Mutual Fund Management) (Asset (NBFC) (NBFC) Reconstruction) 100% 25% 100% 100% 100% 100% 60% JM Financial Overseas Holdings Pvt. Ltd. JM Financial Trustee Company Pvt. Ltd JM Financial Commtrade Ltd CR Retail Malls (India) Ltd. JM Financial Capital Limited (NBFC) JM Financial Home Loans Limited (HFC) 40% Astute Investments (Rental of Property) (Mauritius Investment Advisor) (Commodity Broking) (Trusteeship) 100% 100% JM Financial Singapore Pte Ltd Holding Co SEBI Regulated RBI Regulated JM Financial Securities Inc. Singapore Corporate Finance Advisory & Financial Advisory) Companies outside India (USA) Others Note Includes Equity + CCPS Note 1. JM Financial Institutional Securities Ltd holds 9.27% in JM Financial Products Limited. 2. JM Financial Asset Reconstruction Company Ltd. became subsidiary of JM Financial Limited with effect from September 30, 2016. 27

  28. Shareholding Summary Share Price Performance Market Information (BSE) As on 28.04.2017 9,172.79 Market Capitalization (Rs Cr) 120 100 115.45 Price (Rs) 80 60 79.45 No. of Shares Outstanding (Cr) 40 20 120.50-40.55 52 Week High-Low (Rs) Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Key Institutional Investors – As on March 31, 2017 % Holding % Shareholding – March 31, 2017 4.26% Morgan Stanley Asia (Singapore) Pte Non- Institutions, 17.60% Financial Institutions / Banks, 0.03% Valiant Mauritius Partners Offshore Limited & Associates 3.93% Azim Premji Trust 2.75% Mutual Funds, 2.50% TIMF Holdings 2.56% Promoter & Promoter Group, 65.32% Foreign Portfolio Investors, 14.55% 2.44% IDFC Premier Equity Fund 1.47% Vikram Shankar Pandit Source – Company 28

  29. Table of Contents Q4 FY17 Result Update – Group Performance Q4 FY17 Result Update – Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 29

  30. Key Milestones We have taken many pioneering initiatives in the Indian financials market space 1973 – 1986 1997 – 2006 1999 : • 1973: • 1979-1980 : • Filed First offer document for listing securities of an Indian client with FSA, London. • First to introduce fully convertible debentures in Indian capital markets. 1986: • JM Financial Limited (holding company) incorporated to engage in the business of Stock Broking and Securities. Formed a joint venture with Morgan Stanley in the areas of Investment Banking and Securities business. 2002-2006 : • Managed India’s first IPO through Book Building. • Recorded 3 firsts in India - first Indian dual tranche FCCB issue, first billion dollar IPO, first conditional IPO. • Launched Private Equity Fund. JM Financial & Investment Consultancy Services established in Mumbai. OUR JOURNEY – EVOLUTION INTO A FULL-FLEDGED DIVERSIFIED FINANCIAL SERVICES FIRM 1987-1996 2007-2017 2007: • • • 2008-17: • Managed India’s first IDR issue • Expanded business in International Jurisdictions and operations in Fixed Income business • Commenced Asset Reconstruction Business • Established step down subsidiary in the USA to cater to and service overseas clients/investors • Announced Real Estate NBFC in partnership with an fund managed Mr. Vikram Pandit & Associates • Announced the appointment of Mr. Vishal Kampani as MD of JM Financial Ltd; and Mr. Nimesh Kampani continues to be the non-executive Chairman of the Group and a director on the Board of Directors of a few Group Companies at JM Financial • Floated Housing Finance Company (HFC) and applied to NHB 1987-1996 : Separated from joint venture with Morgan Stanley Acquired ASK Securities - a Institutional Securities Firm Launched Real Estate Fund • First to introduce equity warrants in the Indian capital markets. • First to introduce Deep Discount Bond in Indian capital markets. • Managed four transactions of Securities Offerings in excess of Rs. 100 cr each, a size unmatched till then in Indian markets. • JM Financial Asset Management, the first private sector Mutual Fund, commenced operations. 30

  31. Corporate Governance – Strong Board of Directors Mr. Nimesh Kampani, Chairman B. Com, FCA • Founder and Chairman of JM Financial Group, one of India’s leading financial services groups. • Made pioneering contributions to the Indian capital markets • Served as a member on several important committees like MoF, GoI, RBI, SEBI, BSE, NSE, CII, FICCI and ICAI • Serves As An Independent Director on the Board of several leading Indian companies. Mr. Vishal Kampani, Managing Director M.com, M. S. (Finance) from London Business School • Managing Director of JM Financial Ltd., the group’s flagship listed company. • Launched the Asset Reconstruction business in 2008 and the Real Estate Finance business in 2009. • Expanded the International Operations and built a global profile • Joined the JM Financial group in 1997 as an Analyst in the Merchant Banking Division and has since moved up the rank Mr. E. A. Kshirsagar, Independent Director B.Sc, FCA (England & Wales) • Specialist in corporate strategy and structure, disinvestments- central/state/private sector, feasibility studies for a variety of industries and the impact of legislations on business; • Serves on the Board of several reputed public limited companies. • BSC (Science), FCA (India), FCA (England & Wales). Dr. Vijay Kelkar, Independent Director B.Sc, M.S. from University of Minnesota, USA, Ph.D from University of California, Berkely, USA • Former Finance Secretary to the Government of India. He has also held several senior level positions in Govt. of India as well as International Organisations including International Monetary Fund • Awarded with Padma Vibhushan, the second highest civilian award • Serves on the Board of several reputed public limited companies. Mr. Keki Dadiseth, Independent Director FCA (England & Wales) • Worked with HUL for 27 years. • Member of strategic advisory board of Atos India Pvt Ltd, and senior advisor to Sony group in India. • Associated with various industry, educational, management and medical bodies. • Serves on the Board of several reputed public limited companies. Mr. Darius E. Udwadia, Independent Director B.A., M.A., LLB, • Founder partner, M/s. Udwadia & Udeshi, Solicitors & Advocates • Serves on the Board of several reputed public limited companies. • Vast experience and expertise in the areas like corporate law, mergers, acquisitions and takeovers, corporate restructuring, foreign collaboration, joint ventures, project and infrastructure finance, telecommunication, international loan and finance related transactions and instruments, real estate and conveyancing Ms. Jagi Mangat Panda, Independent Director B.Sc (Biology & Chemistry), Management Development Programme, Indian Institute of Management, Ahmedabad • Presently, Managing Director of Ortel Communications Limited • Has more than 19 years of experience in the media and broadcasting industry • Recognized as the ‘Young Global Leader’ at the World Economic Forum in 2008. Mr. Paul Zuckerman, Independent Director M.A. in Economics, Ph.D in Agricultural Economics • Has been associated with various international organisations, including World Bank and International Institute of Tropical Agriculture, Ibadan, Nigeria • Was Chairman, SG Warburg & Co., and was closely associated with Indian companies in the early days of globalisation In India. 31

  32. Effective Risk Management Framework Robust risk management architecture encompassing independent identification, measurement and management of risk across various businesses of the Group 1 2 Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks 3 Quarterly risk meetings of all businesses with Group Risk Committee "Risk Events Update" briefly describing 'Risk Identification', 'Risk Classification', 'Risk Assessment & Impact' and 'Remedial Action/ Risk Mitigation' aspects of all the identified risks are placed periodically (every six monthly) before the Board of Directors 4 Independent Internal Audit firms appointed to review and report on the business processes and policies in all operating companies of the Group 5 Internal Financial Controls (IFC) framework (as per provisions of the Companies Act, 2013) is laid-down which briefly highlights the Risk Control Matrices (RCMs) across the Group with a focus on Entity Level Controls 6 32

  33. Social Responsiveness at JM Financial Group Supported over 1500 students from weaker sections of society through education programs such as scholarships, material support and using Sports as a medium of development. Education Provided preventive and curative care to over 3000 people through partner organizations in Gujarat, Tamil Nadu and Maharashtra Healthcare services Reached out and supported over 2000 children for holistic care and developmental support Care for special children Supported an organization for conservation of snow leopards and prevention of human wildlife conflict with local communities, in Jammu & Kashmir region Animal care Encourage and train budding sports champions for national & International championships with special emphasis on Olympics Sports Initiatives More than 400 employees participated in JM Financial Foundation annual Walkathon. The proceeds will go towards deserving and worthy social causes. Employees volunteering 33

  34. CSR - The Road Ahead ENSURE FOOD SECURITY GALVANIZE WOMEN COLLECTIVES LINK TO CREDIT & MARKETS BUILD SUSTAINABLE INCOMES Bihar Jharkhand Gujarat Madhya Pradesh FOCUSED INTERVENTION IN EMPOWERED ACTION GROUP DISTRICTS 4 States 4 Districts 7 Blocks Over 600 Villages To implement Integrated Rural Transformation Programmes over a period of 5 years reaching out to the most unreached 34

  35. Table of Contents Q4 FY17 Result Update – Group Performance Q4 FY17 Result Update – Business Performance Group Structure and Shareholding Pattern Group Overview Annexures 35

  36. Financial Summary – Consolidated Financials Gross Revenues (Rs Cr) Net Profit (Rs Cr) 470 2,359 400 331 1,685 1,403 210 1,042 183 1,007 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Leverage Analysis (Rs Cr) Return Ratios (%) 2.5 15.6% 15.3% 14.6% 2.0 1.9 4,336 10.3% 1.5 9.5% 1.3 3,473 5.4% 5.3% 4.7% 3,092 3.5% 3.2% 2,126 10,802 2,257 6,671 4,721 4,196 2,987 FY13 FY14 Debt FY15 Equity FY16 FY17 FY13 FY14 FY15 FY16 ROE % FY17 D / E ROA % 36

  37. Financial Summary – Fund Based Activities Loan Book (Rs Cr) Net Disbursements (Rs Cr) 11,343 4,128 1,561 968 1,827 1,676 2,409 7,215 683 238 593 5,388 700 911 993 2,784 (26) 2,477 991 1,471 626 2,979 3,005 8,106 648 (510) 308 1,552 (559) (398) 5,629 753 (23) 917 (164) 852 2,845 1,362 1,374 726 FY13 FY14 Real Estate FY15 Capital Market FY16 Corporate FY17 FY13 FY14 Real Estate FY15 Capital Market FY16 Corporate FY17 Spread Analysis (%) Gross & Net NPA (%) Return Ratios & Capital Adequacy (%) 0.9% 35.0% 0.8% PCR – 94 % 28.8% 25.5% 15.1% 24.1% 15.0% 14.8% 14.8% 14.4% 21.7% 0.7% 0.7% 0.4% 11.0% 16.7% 10.3% 10.8% 15.7% 9.7% 15.2% 9.5% 14.6% 0.3% 17.9% 0.1% 4.9% 4.7% 4.5% 8.0% 3.1% 3.0% 7.3% 6.7% 6.2% 0.2% 0.2% 4.3% 0.0% FY13 FY14 FY15 FY16 FY17 NIM % FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 ROE % FY16 FY17 Yield % COF % Gross NPA % Net NPA % ROA % CRAR % 37

  38. Financial Summary – Wealth Management, Alternative Asset Management, Asset Management, Asset Reconstruction Wealth Management AUM (RS Cr) Alternative Asset Management AUM (Rs Cr) 26,958 23,664 17,550 17,382 13,492 381 339 302 233 180 905 855 610 540 475 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Private Equity Real Estate Asset Management AUM (Rs Cr) ARC AUM (Rs Cr) 1,635 6,585 6,561 11,353 14,891 13,394 1,461 1,227 5,726 6,773 584 6,975 11,874 340 9,820 8,398 9,165 3,647 6,031 6,103 6,620 4,378 1,083 554 FY13 459 FY14 Equity FY13 FY14 FY15 FY16 FY17 FY15 FY16 Debt FY17 ARC's AUM JM's share in ARC's AUM 38

  39. For Further Queries - Mr. Manish Sheth Mr. Nishit Shah Group CFO Business Strategy and Investor Relations Email: manish.sheth@jmfl.com Email: nishit.shah@jmfl.com Contact No: 022 66303461 Contact No: 022 66303522 Ms. Karishma Mehta Mr. Nilesh Dalvi Investor Relations IR Consultant Email: karishma.mehta@jmfl.com Email: nilesh.dalvi@jmfl.com Contact No: 022 66303585 Contact No: 9819289131 39

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