Bajaj FinServ Limited

1. Bajaj FinServ Limited

2. Table of Contents Bajaj FinServ Limited Page 3-7 Overview of Financial Service Industry Page 9-11 Bajaj FinServ : Objective & Performance Page 13-27 Overview of Indian Insurance Industry • Bajaj Allianz Life Insurance • Bajaj Allianz General Insurance Bajaj Auto Finance Page 29-30 Page 31-33 Performance Summary • Bajaj Auto Ltd • Bajaj Holdings & Investment Ltd

3. Opportunities Bajaj FinServ Limited INDIA – One of the fastest growing economies Source: United Nations Statistics Division www.data.un.org • 2nd fastest growing economy, after China • Clocking an average growth rate of ~9% • Expected to grow at ~8% over the next decade

4. Bajaj FinServ Limited Immense market potential for financial investments • Under-penetrated market • Low Insurance density with penetration under 5%

5. Consumption Boom Bajaj FinServ Limited Low Debt to GDP and Savings largely invested as deposits

6. Bajaj FinServ Bajaj FinServ Limited Vision To grow for, and with, India An entire range of financial products and services covering individual’s entire life cycle Offer • Lending • Investments • Protection Cover

7. Conceptual structure of BFS Bajaj FinServ Limited Bajaj Financial Services Group Structure One Face to customer Distribution Company - Advice and Distribution of all financial products customers Focused Product companies Cons. Finance Insurance AMC 3rd Party Products and risk Consolidated Backend activities Group Shared Services opportunity Process Existing businesses

8. Bajaj FinServ Limited Bajaj FinServ Ltd Financial Results

9. Bajaj FinServ Limited Ownership Consolidated entities • Subsidiaries & associates % holding • Bajaj Allianz Life Insurance 74.0% • Bajaj Allianz General 74.0% • Bajaj Auto Finance 40.5% • Bajaj Allianz Financial 50.0% • Distributors • Bajaj Financial Solutions 100.0% • CostMarket Value • Other investments 7,891 7,588 All values in INR million unless specified otherwise

10. Consolidated segment financials Bajaj FinServ Limited

11. Financials - Standalone Bajaj FinServ Limited

12. Insurance Industry

13. The life insurance opportunity Low density, strong GDP growth and growing penetration = favorable climate for Life Insurance growth. • Penetration levels still lower than developed countries • Premium/GDP is at 4% compared to 6%-9% • developed countries • Premium per capita is INR 1,500 • against an average INR 6,750 for Asia • Only a third of the target population is • estimated to be insured 1 -Life insurance density – Swiss Re Sigma report 2006 2- Estimates by JP Morgan Associates 1USD = INR 43 13

14. The Indian Insurance industry – past, present and future GWP INR Bn Non life 16% CAGR 07-12 Life 20% CAGR 07-12 1 – Swiss Re estimates extended by 1 year – ASSOCHAM estimates 2010 extended by 2 years 2 – Mckinsey estimate 2011 $ 80 Bn - $ 100 Bn – we have considered $80 Bn plus 12.5% growth in 2012 Fiscal year ending 31 March 14

15. The great Indian middle class Source Mckinsey Global institute

16. Building Bajaj Allianz Insurance environment until 2001 Start of Bajaj-Allianz JV What we did differently compared to our peers Non-Life market • Agency the only distribution channel • 90% of business done directly through 4,000 offices of government companies • No product innovation • No incentive for good service • Cashless claim settlement was unheard of Non-Life • Focus on retail • Pioneered several innovative services • Tie-up with non-traditional channels for distribution of products like motor dealers and manufacturers, travel agents, banks Non-Life • Tie-up with motor dealersand manufacturers to increase volumes • Leverage IT and focus onIT-enabled systems • Create image for transparency and innovation • OPEX (Operational Excellence) methodology (claims handling, customer service) How it all started Life market • Only one Life company1 was operating till 2001 • Products like unit linked policies did not exist Life • Minimize set-up costs for distribution e.g. Banyan tree • Fast roll out for pan-Indian presence Life • Fast and nationwide roll-out of branches to leverage cross-sell/ up-sell • Focus not only on tier 1, but also on tier 2 + 3 cities 1) Life insurance corporation (state owned company)

17. Bajaj Allianz Life Insurance Co.

18. Bajaj Allianz Life - Market Share on APE** basis 2007/08 Q1 2008/09 21.1% 14.2% 13.7% 15.4% 10.3% 8.1% 7.8% 6.2% 4.1% 4.9% 4.6% 3.4% ICICI PRU Bajaj Allianz SBI Life HDFC Std Life Reliance Life Others Pvt (12 cos) ICICI PRU Bajaj Allianz SBI Life Max NY life Birla SL Others Pvt (12 cos) LIC’s market share is 38% for YTD May 08 as compared to 48% as on 31st March ,2008 Source: IRDA website. ** APE = 10% of Single Premium + 100% of Regular Premium Fiscal year ending 31 March

19. Bajaj Allianz Life • Amongst private insurers … during FY08 Second largest in new business premium First position on number of policies issues • Gross Written Premium – 82% Rs. 97 billion v/s Rs. 53 billion in P. Yr • Market share – 10.3% v/s 7.4% in P. Yr on APE* basis • Number of policies – 3.7 million v/s 2.1 million in P. Yr • Unit linked funds increased by 111% • 12 new products launched during the current year • Currently 32 individual products & 9 product groups on offer *APE = 10% of Single Premium+ 100% of Regular Premium

20. Performance Summary *APE = 10% of Single Premium+ 100% of Regular Premium

21. Shareholders funds & Investments overview Total capital infused during the year – Rs. 5,101 million Efficient capital management Gross Written Premium to Share Capital 2007/08 Bajaj Allianz Life 8.04 SBI Life 5.62 HDFC SL 3.66 ICICI Pru 3.60

22. New Business Achieved Profit (NBAP) trend NBAP Comparison with other Life Companies might not be very relevant as actuarial Assumptions & methodology used are likely to vary from Company to Company, in the absence of any common agreed process 22 ** APE = 10% of Single Premium + 100% of Regular Premium

23. Bajaj Allianz General Insurance Co.

24. Bajaj Allianz General (Q1/FY09) • Amongst private insurers, during FY08, maintained second position in terms of GWP • GWP – 28%, Rs.7.3 billion v/s Rs.5.7 billion in Q1/FY08 Market share – 8.5% v/s 7.4% in Q1/FY08 • Net premium earned– 43% Rs.4.1 billion v/s Rs.2.8 billion in Q1/FY08 • Number of policies sold – 1.8 million v/s 1.4 million in Q1/FY08 • Investible surplus – Rs. 22.6 billion • Strong retention ration – increased to 72% from 66% • Losses from Motor Pool estimated at Rs 120 million v/s Rs 90 million proportionately in Q1/FY08 • Bancassurance, direct retail channels growing above 60% 24

25. Performance Summary Focus on cash flows, growth in invested surplus. Free cash flow = increase in invested surplus net of financing cash flows 25

26. Changing business mix Business Mix-Market Business Mix- Bajaj Allianz Corporate Corporate Motor Motor Health Health Others Others By 2012, it is expected that Motor and Health will constitute more than two thirds of the market 0% 10% 20% 30% 40% 50% 60% 70% 0% 20% 30% 40% 50% 60% 10% Q1 2008/09 2007/08 2006/07 2006/07 2007/08 To capitalize on the growing health and motor segments and with corporate pricing under pressure, Bajaj Allianz has increased its presence in retail business

27. Capital Efficiency – FY08 • Bajaj Allianz is the benchmark for efficient use of capital • Highest return on equity in the private sector Return on equity is on simple average equity. GWP as per IRDA website

28. Bajaj FinServ Limited Bajaj Auto Finance – Retail Financing

29. Strategy Vision Bajaj FinServ Limited Bajaj Auto Finance Plug & Play Model for accelerated growth • Innovate to grow – Product and services Develop a Unique Business Model focused on delivering range of consumer lending products to Indian Middle Class serviced by best in breed specialists • Build and launch innovative products • Offer full product suite • Leverage existing gaps of “service • differentiation” in the market • Forging Business Partnerships • Build partnerships with consumer databases • Leverage distribution & customers to build • faster growth engines • Leading financer of … • ~ Two wheelers • ~ Consumer durables & personal computers • ~ Personal loans • New business lines • ~ Securitization ~IPO financing • ~ Loans against shares ~Loans against • property (to launch) • ~ Personal loans • >Cross-sell >Small business loans • Scalable Operating Platform • Outsource Technology & Operations for • variable cost structure • Own / Automate risk & underwriting process • Leverage CRM Capabilities • Sell more & more to each customer • Acquisition and operating cost advantage

30. Business Performance Financial Performance Bajaj FinServ Limited • Asset base of Rs. 27 billion • Book value per share – Rs. 291 • Capital adequacy ratio – 40% ( RBI norm – 12% ) • Earning per share ( diluted ) – Rs. 0.82 in Q1/FY09 v/s • Rs. 1.12 in Q1/FY08 & Rs. 5.68 in P. Yr

31. Thank you Bajaj FinServ Limited No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from Bajaj FinServ Limited, Mumbai-Pune Road, Akurdi, Pune-411 035, India. Certain part of this presentation describing estimates, objectives and projections may be a “forward looking statement” within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. Undue reliance should not be placed on such statements & values because by their nature, they are subject to known and unknown risks and uncertainties and can be affected by numerous factors that could cause actual results to differ materially. This material was used by Bajaj FinServ Limited during an oral presentation; it is not a complete record of the discussion.