Townhall Presentation

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About IDFC

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IDFC Bridging the Infrastructure Gap

History and Profile Established in 1997 by the Government of India to lead private capital to commercially viable infrastructure projects and to promote PublicPrivate-Partnerships (PPP) Listed in 2005 on the National Stock Exchange and on the Bombay Stock Exchange Key shareholders include Government of India, Khazanah ( Govt of Malaysia), Govt of Singapore, IFC, IDBI, LIC, CDC, and Nikko Cordial. Operates as an independent commercial entity Achieved compounded annual growth in loans of 45% from 20022008 Key Statistics Market capitalisation Total assets Assets under Management Employees US$4.40bn US$10.69bn US$7.4bn 540

Note: Figures are as on March 31, 2011. Market Capitalisation as on June 13, 2011.

Superior Financial Performance

Net Profit (US$ MN) 300 250 200 159 225 157 150 107 100 50 0 2005 2006 2007 2008 2009 2010 2011 66 83 288

Financial Strength (as at 31 March 2011) Capital adequacy ratio of 24.48% Net NPA 0.1% Rated AAA by ICRA

Performance of the sponsor has no bearing on the performance of the scheme

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Multiple Origination Channels and Leverage Over Project Sponsors

Advisory and Project Development
Project Finance Investment Banking

Asset Management

Domain knowledge and expertise Unique deal platform Deal referral and sourcing Superior deal visibility Established relationships with private developers Strong advisory relationship with the Government on infrastructure policy issues

Superior market share Loan financing of US$8.4bn across 220 projects In FY2008, IDFC facilitated 30% of all debt financing to infrastructure projects from Indian banks

IDFC SSKI has been consistently rated as best domestic brokerage house by Asia Money and Euro Money Leading league table position in India Syndicated Loans In CY2007, was a Top 3 arranger in all currencies In CY2007 was the top non-State Bank arranger of Rupee loans

Largest Manager of Private Equity Capital Focused on Indian Infrastructure IDFC Private Equity manages three infrastructure focused funds AUM of US$1.2bn IDFC Project Equity manages the India Development Fund with AUM of $ 927 mn IDFC Mutual Fund manages $ 4.0 bn of funds under various debt and equity schemes

Strong growth in loans to infrastructure projects

Superior asset quality

Strong government relationship and access to policy makers Leading project finance franchise with 30% of debt financing market share Proprietary deal access and unparalleled relationships with developers across the country Strong fund management experience Broad network of industry contacts

IDFC Portfolio Offering

*Performance of sponsor has no bearing on the performance of schemes

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IDFC The People (Asset Management)

MD & CEO Dr. Rajiv Lall: MD and CEO at IDFC. Has over two decades of experience with Warburg Pincus, Morgan Stanley, World Bank and Asian Development Bank. Dr. Lall is an economist from the Universities of Columbia and Oxford. Executive Director Mr. Vikram Limaye: Executive Director and Member of the Board of Directors of IDFC. He has over two decades of experience with Credit Suisse First Boston, Citibank, Ernst & Young and Arthur Anderson. He is a Chartered Accountant and an MBA from the Wharton School, University of Pennsylvania. President & CEO, IDFC AMC Mr. Naval Bir Kumar : President and CEO of IDFC Asset Management Company Limited. Has about two decades of experience in Indian capital markets through his association with ANZ Grindlays and Standard Chartered Bank. He is a rank holder in Mathematics from Bombay University and holds an MBA from the Indian Institute of Management, Calcutta. Managing Partner, IDFC Private Equity Mr. Satish Mandhana, Managing Partner IDFC Private Equity. He has 28 years of private equity and corporate finance / business strategy experience. Mr. Mandhana is a member of the Government of Indias Working Group on Power for the Eleventh Plan (2007-12), and is a founding member of the Cleantech Forum in India. Passionate about promoting green infrastructure, he received an MBA from the Faculty of Management Studies, Delhi University, and holds a BE degree in Industrial Engineering from the Indian Institute of Technology (IIT), Roorkee. President & CEO, IDFC Project Equity Mr. M. K. Sinha is the President and CEO of IDFC Project Equity which manages the India Infrastructure Fund (IIF) with a target size of USD 1.25 billion. A prominent investment expert, he has over 18 years of international experience in private equity, project finance, corporate finance and investment banking .

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IDFC Asset Management Business

IDFC
IDFC AMC

IDFC Private Equity

IDFC Project Equity

Established in 2000 Acquired in 2008 from

Established in 2002 Manages a corpus of USD 1.33 Billion Indias largest and most active

Established in 2007 Manages Million) the India

Standard Chartered Has got strategic promoter as

Infrastructure Fund (USD $ 927

Natixis

Global

Asset

private equity fund focused on

infrastructure

Management (NGAM) one of the 15 largest asset managers in the world based on AuM One of the fastest growing fund house of the industry President and CEO: Mr. Naval Bir Kumar

Managing Partner: Mr. Satish Mandhana

President and CEO Mr. M. K. Sinha

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About IDFC AMC

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Aim to be one of the Top 5 player in the MF space Invest in brand and distribution

Provides scale and relevance

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IDFC Asset Management Company (AMC)

IDFC AMC
IDFC Mutual Fund IDFC Investment Advisors IDFC Pension Fund

Debt

Equity

Structured Products

Domestic

Offshore Equity Corp Debt G-Sec

Listed
Un-listed

Long - short
Long Only (Proposed)

10th largest MF in India based on Average AuM tally

Currently manages a corpus of Rs. 26,476 Crores as on December 31, 2011.

Target raising US$ 100 million in Hybrid Infrastructure portfolio

Advisors to Indias largest domestic multi manager fund Advises off shore investors on LongShort mandate In the process of launching listed PMS offering for domestic investors

Set up in April 2009 to manage the Pension Fund for the un-organized sector. One of the Six Pension Fund Managers selected by Pension Fund Regulatory and Development Authority of India (PFRDA)

PMS

1.Leverage IDFC knowledge roots 2. High margin product suite 3. Embedded profit share 4. Variety of asset classes 5. Builds share of mind among distributors

Margin expansion and build market image on knowledge

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Pension Fund

Nuclear families

Longer life spans

No social security No retirement savings

Adds to brand building and retail connect

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IDFC Asset Management Company Ltd.

History and Profile One of the largest Mutual Fund houses in India Started off in 2000 as a debt fund house and successfully transitioned into equity Direct presence in 40 Indian cities and an indirect presence in 208 Indian towns Innovated successfully on the product and service front Key Statistics MF Market Share: 3.88% (as on Jan. 31, 2012) Closing AAuM as on December 2011 Rs. 26,476 Crs
Debt: Equity = 82:18

No. of Employees: Over 179 Direct credit arrangement: 14 banks Phone Transact One phone number access from more than 950 cities ISO 9001:2000 certification of Customer Services

A Qualified, Experienced Team

Superior Financial Performance

that has a deep understanding of markets in general and the Indian capital markets in particular that has delivered strong investment management performance that has redefined the Indian mutual fund industry with product innovations that partners Sales and Operations to help grow the business and enhance brand

300 250
Hybrid Equity

CAGR: 46%
Debt

AUM (INR bio)

200 150 100 50 0 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-00 Dec-11 Jan-12

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Top Management Team- IDFC AMC

Naval Bir Kumar, President & CEO
Naval has about two decades of experience in Indian capital markets through his association with ANZ Grindlays and Standard Chartered Bank. He is a rank holder in Mathematics from Bombay University and holds an MBA from the Indian Institute of Management, Calcutta.

Kenneth Andrade, Head - Investments

Kenneth Andrade is the portfolio manager for IDFC-Premier, IDFC Imperial, IDFC Enterprise Equity Fund and IDFC Small & Midcap Equity and IDFC Strategic Sector (50-50)Equity Fund. Kenneth has over 14 years experience in equity research & fund management. His last assignment was with Kotak Mahindra Mutual Fund

Kalpen Parekh, Deputy CEO & Head Sales & Marketing

Kalpen has over 12 years of experience in the Mutual Fund space. Before joining IDFC AMC, Kalpen was with Birla SunLife AMC where he was Head Sales & Distribution across Mutual Fund, PMS and Real Estate.

He holds a MMS degree from NMIMS, Mumbai and a BE from Bharti Vidyapeeth, Pune.

Sandeep Prabhani, Head Operations

Sandeep has over 19 years of experience in Depository and Broking Operations. In his last assignment with JP Morgan Services India Pvt Ltd, he was responsible for ensuring OTC Derivative confirmations are tracked & resolved accurately, people management, mentoring and risk review of operations Sandeep has Master of Business Administration from Bajaj Institute in Bombay and Graduate in Science (Physics) from Mumbai University.

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The Investments Team- IDFC AMC

Kenneth Andrade, Head - Investments

Kenneth Andrade is the portfolio manager for IDFC-Premier, IDFC Imperial, IDFC Enterprise Equity Fund and IDFC Small & Midcap Equity and IDFC Strategic Sector (50-50)Equity Fund.
Kenneth has over 14 years experience in equity research & fund management. His last assignment was with Kotak Mahindra Mutual Fund

Tridib Pathak, Sr. Fund Manager Equity

Tridib Pathak is the Portfolio Manager for IDFC Classic Equity Fund and IDFC GDP Growth fund Tridib is a Chartered Accountant and has over 19 years of experience in Project Finance, Equity Research and Fund Management His last assignment was with Lotus India Asset Management

Suyash Choudhary, Head Fixed Income

Suyash is the portfolio manager for IDFC Super Saver Income Fund Invt. Plan; IDFC Dynamic Bond Fund; Super Saver Income Fund Medium Term; Super Saver Income Fund Short Term; IDFC Govt. Securities Fund; IDFC All Seasons Bond Fund Suyash has a graduate degree from Delhi University & also a PGDM from IIM Calcutta His last assignment was with HSBC Asset Management.

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IDFC AMC Investment Process

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Fixed Income
3D Factor Process A proprietary decision making tool
PORTFOLIO DECISION ATTRIBUTE RECOMMENDATION

ECONOMIC FUNDAMENTALS

MARKET PSYCHOLOGY

MARKET VALUATIONS

MONEY SUPPLY DEPOSIT GROWTH FISCAL POLICY CREDIT GROWTH ECONOMIC GROWTH INFLATION

POLICY & EVENT RISK MONEY FLOW INDIAN RUPEE SENTIMENT

VOLUME TRADED STEEPNESS OF YIELD CURVE OVERSEAS RATE

An objective decision making process insulates from excessive market noise

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Equity
Equity Circle A proprietary decision making tool
Idea generation

Macro Themes Stock filters Valuation Market interest Free float Institutional interest Research coverage

Business Industry Business ROI Management

P/E vs growth Sector / market P/E DCF vs Enterprise value Economic Value Add

Great Business

Undervalued Stock

Price Performance

Risk Control and Portfolio Construction

Equity Circle encompasses the entire process from idea generation to portfolio risk management

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IDFC AMC Fund Positioning, Awards & Achievements

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IDFC AMC Debt Funds Positioning

IDFC SSIF IDFC

IP

Return

IDFC SSIF MT IDFC SSIF ST IDFC MM Fund TP/IP

G-Sec Fund IP

IDFC Cash Fund

Max 91 d

91<>365 d

Max 3 yrs

Max 5 yrs

Longer Maturities

MATURITY

Duration (Risk)

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IDFC AMC Equity Funds Positioning

Large Cap Top 75 Stocks Mature Mid cap Top 300 Stocks Young High Growth 500 Stocks

Small & Mid-cap Equity Fund

Enterprise Equity Fund Imperial Equity Fund Strategic Sector (50:50) Equity Fund Premier Equity Fund

Classic Equity Fund: Captures the breadth of the market

India GDP Growth Fund : Reflects Indias high GDP growth through a diversified portfolio

IDFC Classic Equity Fund IDFC GDP Growth Fund

Captures the breadth of the market Reflects Indias high growth through a diversified portfolio

IDFC Enterprise Equity Fund IDFC Imperial Equity Fund IDFC Strategic Sector (50-50) Equity Fund

Tracks the index of the large cap stocks and invests in IPO opportunities Active portfolio construction with large cap bias Builds a portfolio with part concentration risk of a sector

IDFC Small and Mid cap Equity Fund (IDFC SMEF) IDFC Premier Equity Fund

Builds a portfolio of small and mid-cap companies Builds a portfolio of companies with strong tailwinds of cultural and societal trends

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Other Recognition
Funds across debt and equity recognized as Seven Star funds by ICRA awards (Dec 2011) IDFC Dynamic
Bond Fund & IDFC Premier Equity Fund. We were also the winner of the NDTV Profit Mutual Fund Awards 2010 (IDFC Super Saver Income Fund Medium Term Plan A : Runner up under Debt: Income category) and CNBC-TV18-CRISIL Mutual Fund Awards Winners (IDFC Super Saver Income Fund - Medium Term under Income Funds - Short Term category). IDFC AMC rated as the Best Performing Fund House by the Economic Times (ET) Quarterly Mutual Fund Tracker for Q1 and Q2 of FY 09-10. The domestic research agency Value Research has given 5 Star rankings to Premier Equity Fund, IDFC Ultra Short Term Fund, IDFC SSIF Medium Term Fund & IDFC Gov. Sec. Fund for the month of Jan. 2012. IDFC Cash Fund, IDFC Money Manager Fund TP and IDFC Imperial Equity Fund has been ranked 4 Star. The international research agency Morningstar has given 5 Star rankings to Premier Equity Fund, IDFC SSIF Medium Term Fund, IDFC Cash Fund & IDFC Gov. Sec. Fund for the month of Jan. 2012. IDFC Cash Fund, IDFC Money Manager Fund TP & IP, IDFC Dynamic Bond Fund and IDFC Imperial Equity Fund has been ranked 4 Star.
*Refer to the disclosure slide for greater detail on the awards

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Other Highlights

Full service AMC having products in all segments and catering to all investor segments
One of the fastest growing MFs in India in FY 2008-09 Among the Top 4 in terms of percentage growth in AuM

Among the few funds to get an ISO 9001:2000 certification for its entire range of
customer service activities.

The only MF to operate a PIN free Phone Transact system. Working with best in class vendors for both front-end dealing and back-end fund account and custody Dealing system Bloomberg Fund Accountants Deutsche Bank Custodian Deutsche Bank

Selected as one of 6 AMCs to manage Pension Funds in India

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Awards and Accolades

IDFC was named Asset Manager of the Year by Asian Investor Magazine, for our work in private equity, mutual funds and sustainable investments in emerging markets. In the Equity Category: Business World awarded us the Smartest Fund Manager (Kenneth Andrade, Chief Investment Officer- the Smartest Fund Manager and his fund IDFC Premier equity Fund-the Best Mid cap and Small cap fund) - a testimony of our innovative and efficient approach to managing assets.

Best Equity Fund 2010 Front Runner Scheme IDFC Premier Equity Fund

ICRA MF Awards 2011

Fund : IDFC Premiere Equity Fund Star ranking : 7 Star (Best Performance among The 5 star Funds) Category: Open Ended Equity Mid & Small cap (1 Year & 3 years ending Dec 2011) Fund : IDFC Dynamic Bond Fund Star ranking : 7 Star (Best Performance among The 5 star Funds) Category: Open Ended Debt Long Term (1 Year ending Dec 2011)

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Thank You

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ICRA Online Mutual Fund Awards:

Disclaimers & Risk Factors

IDFC Dynamic Bond Fund has been ranked as a Seven Star Fund in the category of Open Ended Debt Long Term schemes for its 1 year performance till December 31, 2011. The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, fund size, sector concentration, credit indicator and average maturity. The ranking methodology did not take into account loads imposed by the Fund. There were 25 schemes considered in Open Ended Debt Long Term category for the ranking exercise. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of IDFC Dynamic Bond Fund IDFC Premier Equity Fund has been ranked as a Seven Star Fund in the category of Open Ended Equity Mid & Small Cap schemes for its 1 year performance till December 31, 2011. The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, company concentration, sector concentration, Liquidity Analysis and Fund size. The ranking methodology did not take into account loads imposed by the Fund. There were 36 schemes considered in Open Ended Equity Mid & Small Cap category for the ranking exercise. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of IDFC Premier Equity Fund. IDFC Premier Equity Fund has been ranked as a Seven Star Fund in the category of Open Ended Equity Mid & Small Cap schemes for its 3 year performance till December 31, 2011. The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, company concentration, sector concentration, Liquidity Analysis and Fund size. The ranking methodology did not take into account loads imposed by the Fund. There were 27 schemes considered in Open Ended Equity Mid & Small Cap category for the ranking exercise. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of IDFC Premier Equity Fund. Ranking Source & Publisher: ICRA Online Limited

Morningstar Ranking Disclaimer:

This Morningstar-sourced information is provided to you by IDFC AMC and is at your own risk. Morningstar is not responsible for any damages or losses arising from any use of this information. Also, this information must not be relied upon without ppropriate verification. IDFC AMC informs you as follows: (i) no investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor; (ii) past performance is no guarantee of future results; and (iii) the value and income derived from investments can go down as well as up. The Morningstar fund rating methodology is based on a fund's risk-adjusted return within a given Morningstar category. Morningstar ratings are calculated every month for the 3 year, 5 year and 10 year period. Within each rating period, the top 10% funds receive a five star rating, the next 22.5% earn a four star rating, the next 35% get three stars, the next 22.5% receive two stars, and the bottom 10% get one star. Loads are not considered for the rating purpose. The rating is based on NAV provided by respective funds. The current fund rating is for the 3 year period as of Dec 31st, 2011. IDFC Premier Equity Fund Growth has been rated 5-Star fund in the category of Small/Mid Cap schemes (143 Schemes), IDFC Sterling Equity Fund Growth has been rated 4-Star fund in the category of Small/Mid Cap schemes (143 Schemes), IDFC Imperial Equity Fund Growth has been rated 4-Star fund in the category of Large Cap schemes (314 Schemes), IDFC Dynamic Bond Fund Growth has been rated 4-Star fund in the category of Intermediate Bond schemes (148 Schemes), IDFC Gov Sec PF Fund Growth has been rated 4-Star fund in the category of Intermediate Government schemes (72 Schemes), IDFC SS Inc M/T Fund Growth has been rated 4-Star fund in the category of Short-term Bond schemes (97 Schemes), IDFC SS Inc IP Fund Growth has been rated 4-Star fund in the category of Intermediate Bond schemes (148 Schemes) Value Research Rating Disclaimer: Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity and hybrid funds this rating is based on the weighted average monthly returns for the last 3 and 5-year periods. In the case of debt funds this rating is based on the weighted average weekly returns for the last 18 months and 3- year periods and in case of short-term debt funds weekly returns for the last 18 months. These ratings do not take into consideration any entry or exit load. Each category must have a minimum of 10 funds for it to be rated. Effective, July 2008, we have put an additional qualifying criteria, whereby a fund with less than `5 crore of average AUM in the past six months will not be eligible for rating. Five-stars indicate that a fund is in the top 10% of its category in terms of historical risk-adjusted returns. Four stars indicate that a fund is in the next 22.5%, middle 35% receive three stars, the next 22.5% are assigned two stars while the bottom 10% receive one star. The number of schemes in each category is mentioned along side the categories name. Equity: Large Cap (48), Equity: Large & Mid Cap (56), Equity: Multi Cap (37), Equity: Mid & Small Cap (49) Equity: Tax Planning (29), Equity: Infrastructure (18), Equity: Banking (10), Hybrid: Equity-oriented (23), Hybrid: Debt-oriented Aggressive (14), Hybrid: Debt-oriented Conservative (41), Hybrid: Arbitrage (14) Debt: Income (65), Debt: Gilt Medium & Long Term (35), Debt: Short Term (20), Debt: Ultra Short Term (150), Debt: Liquid (100). These Fund Ratings are as on January 31, 2012. The Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight. The Ratings are subject to change every month. The Rating is based on primary data provided by respective funds, Value Research does not guarantee the accuracy.