1. Discussion: Business Strategy Project Gabriel

2. Personalized service Efficient back-office processing Active CRM Strong MIS Credible research team Key Success Factors

3. Competition Analysis • Increased competition from existing and new players • Brokerage War • Not sustainable for new players • Volume - Price inelasticity(Volume function of Capital & Risk Appetite) • Past experience of Price Wars

4. Competition Analysis 4. Lower operating costs (Angel advantage) • Servicing Bottom of the Pyramid • High OPM% v/s Competition

5. Competition Analysis 4. Lower operating costs (Angel advantage) • Servicing Bottom of the Pyramid • High OPM% v/s Competition 5. Competitive pricing model replication

6. Business during Sensex downturn • Strong economy • Correction, if any, would be short term • Memoirs of 2001 • Angel’s gameplan • Fee based income from large AUMs • Lesser impact due to increased penetration, large client base • New Client acquisition : ~ 10,000 per month

7. Continued focus on retail customers • Extensive branch expansion • Over 180 new planned branch opening by H1 FY10 • Diversification of financial product offerings • Margin funding, wealth management, distribution of investment and loan products • Consolidation Key Tenets Of Angel’s Strategy

8. Key Tenets Of Angel’s Strategy Continued focus on retail customers (1/2) Number of Households Aggregate Disposable Income Source: McKinsey Global InstituteNotesHousehold categorization data denotes annual householdincome (Rs Thousand in 2000 terms) Source: McKinsey Global InstituteNotesHousehold categorization data denotes annual householdincome (Rs Thousand in 2000 terms)

9. Key Tenets Of Angel’s Strategy Continued focus on retail customers (2/2) Retail/ Institutional split across countries (2005) AuM,2005 (USD trillion) 49.1 22.3 5.3 3.2 2.2 2.2 1.9 1.4 1.4 1.3 1.3 0.17 0.5 Source: Central banks; national accounts; national insurance and asset management associations; BCG analysis.

10. Continued focus on retail customers • Extensive branch expansion • Over 180 new planned branch opening by H1 FY10 • Diversification of financial product offerings • Margin funding, wealth management, distribution of investment and loan products • Consolidation Key Tenets Of Angel’s Strategy

11. Key Tenets Of Angel’s Strategy Extensive branch expansion Angel – Own Branches expansion 234 170 74 48 Source: Company

12. Continued focus on retail customers • Extensive branch expansion • Over 180 new planned branch opening by H1 FY10 • Diversification of financial product offerings • Margin funding, wealth management, distribution of investment and loan products • Consolidation Key Tenets Of Angel’s Strategy

13. Key Tenets Of Angel’s Strategy Diversification of financial product offerings CAGR Case study: US Consumer financial asset mix, (1982-2002) USD trillion Cash, Deposits & Others 7 % 7.6 11.8 17.2 27.5 29.9 8 % Equity Insurance 7 % Pension 10 % Mutual Funds 15 % In 2004, Indian households had c. 83% of their financial assets invested in Savings and Mutual Fund products Source: ICI, US Consumer Survey Report, Federal Reserve Bulletin, BCG Analysis

14. Continued focus on retail customers • Extensive branch expansion • Over 180 new planned branch opening by H1 FY10 • Diversification of financial product offerings • Margin funding, wealth management, distribution of investment and loan products • Consolidation Key Tenets Of Angel’s Strategy

15. Key Tenets Of Angel’s Strategy Consolidation Total number of terminals in a broking houses Study covered c. 200 equity broking houses in India Source: “India’s Leading Equity Broking Houses 2007”, Dun & Bradstreet

16. Q& A Next Step