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Edelweiss Capital Ltd Investor Presentation

Third Quarter Results

January 2009


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Safe Harbor

This presentation and the discussion that follows may contain certain words or phrases that are forward - lookingstatements, based on current expectations of the management of Edelweiss Capital Ltd. or any of its subsidiariesand associate companies (Edelweiss). Actual results may vary significantly from the forward-looking statementscontained in this presentations due to various risks and uncertainties. These risks and uncertainties include theeffect of economic and political conditions in India and outside India, volatility in interest rates and in the securitiesmarket, new regulations and Government policies that may impact the businesses of Edelweiss as well as its ability

to implement the strategy. The information contained herein is as of the date referenced and Edelweiss does notundertake any obligation to update these statements. Edelweiss has obtained all market data and other informationfrom sources believed to be reliable or its internal estimates, although its accuracy or completeness can not beguaranteed.

This presentation is for information purposes only and does not constitute an offer or recommendation to buy or sellany securities of Edelweiss. This presentation also does not constitute an offer or recommendation to buy or sellany financial products offered by Edelweiss. Any action taken by you on the basis of the information containedherein is your responsibility alone and Edelweiss or its directors or employees will not be liable in any manner for theconsequences of such action taken by you. Edelweiss and/or its directors and/or its employees may have interestsor positions, financial or otherwise, in the securities mentioned in this presentation.

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Contents

1. Financial Highlights

2. Industry Trends

3. Performance Highlights

4. Challenges Going Forward

5. Edelweiss Across The Years

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1. Financial Highlights


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Revenues of INR 1,986 mn (INR 2,496 mn in second quarter FY09)

Fee & Commission Income of INR 477 mn (INR 678 mn)

Treasury, Arbitrage and Trading Income of INR 448 mn (INR 853 mn)

Interest Income of INR 927 mn (INR 844 mn)

Profit After Tax and Minority of INR 381 mn (INR 436 mn)

PBT Margin improvement to 36.5% (33.0%)

Diluted quarterly EPS of INR 4.93 (INR 5.56)

Consolidated Results at a Glance


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Consolidated Unaudited Quarterly Results

INR Million FY09 FY09 FY08 FY09 FY08 FY08

Q3 Q2 Q3 9M 9M Annual

Fee and Commission Income 477 678 1,252 2,041 2,993 4,438

Treasury, Arbitrage and Trading Income 448 853 946 2,003 2,150 3,493

Investment and Dividend Income # 134 115 363 586 599 766

Interest Income 927 844 671 2,534 1,085 2,171

Other Operating Income 1 6 3 7 4 21

Total Revenues 1,986 2,496 3,235 7,171 6,831 10,889

Operating and other expenses * 579 723 628 1,960 1,373 2,280

Employee Cost 382 482 480 1,361 1,234 2,057

Financial expenses 258 423 673 1,120 1,182 2,012

Depreciation 42 44 17 120 40 73

Total Expenses 1,261 1,672 1,798 4,561 3,829 6,422

P rofit Before Tax 725 824 1,437 2,610 3,001 4,467

Tax expenses 276 325 473 962 1,014 1,540

P rofit After Tax 449 499 964 1,648 1,988 2,927

Share of minority interests in profits 67 63 40 193 81 195

P rofit After Tax and Minority I nterest 381 436 924 1,455 1,907 2,732

Diluted EPS (INR-not annualized) 4.93 5.56 12.95 18.81 30.03 39.99

(#) Quarter and 9 months ended 31 st Dec 2008 includes income of INR 61.6 mn and INR 282.7 mn respectively, from liquid mutual funds.(*) Quarter and 9 months ended 31 st Dec 2008 costs include Securities Transaction Tax of INR 117.1 mn and INR 612.9 mn respectively.


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Key Metrics

Period ending 9M09 2008 2007 2006 2005 2004

Net Worth (INR mn) * 25,692 23,274 7,222 1,787 539 302

Book Value Per Share (FV INR 5) (INR) # 269.6 246.5 93.6 39.3 15.8 9.2

Diluted EPS (FV INR 5) (INR)#

18.81 39.99 20.76 9.34 6.43 2.42

Pretax Margins 36% 41% 47% 41% 47% 38%

RoE (Annualized) 10% 28% 34% 39% 56% 30%

(*) Includes minority interest(#) Adjusted for corporate actions, Not annualized for 9M09


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Diversified Revenue Streams

FY07

Fee & Commission Treasury Interest Investment & Others

Achieving Greater Balance Through Diversification of Revenue Streams

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FY08 9M09


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2. Industry Trends


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Secondary Markets

INR bn

Volumes down 17% on QoQ basis, 41% YoY

Includes volumes on BSE and NSESource: BSE, NSE

Net outflow of ~ USD 13 bn in last four quarters

USD bn


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ECM and Advisory Transactions

Public Equity Deals Domestic Debt Market

Notes:Public Equity Deals include Domestic Equity Offerings, Rights, FCCBs and Depository Receipts

Domestic Debt Markets include Debt Private Placements and commercial papersSource: Bloomberg, Prime Database, Venture Intelligence

V o

l u m e

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N o .

o f D e a

l s

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i n I N R b

n

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o f D e a

l s


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M&A Deals Private Equity

Notes:M&A Deals are announced deals all announced deals which may or may not have been completedSource: Bloomberg, Prime Database, Venture Intelligence

ECM and Advisory Transactions

V o

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i n I N R b

n

V o

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i n I N R b n

N o .

o f D e a

l s

N o .

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3. Performance Highlights


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Investment Banking business closed 3 transactions in Q3 and 9 transactions YTD

Key transactions include

Acquisition of PeopleSupport, Inc. by Aegis for USD 250 mn

Private equity placement of USD 75 mn for SKS Microfinance

Adjudged winner in the Best Merchant Banker category in the Outlook Money NDTV

Profit Awards 2008

Agency Businesses


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In the first full year of operations of Debt Syndication Desk Ranked #1 as per Prime Database in Short Term Debt Placement for CY08

Ranked #9 by Bloomberg and Thomson Reuters in Indian Domestic Bonds Market

League Table for CY08

Equity and Derivatives average daily trading volumes

Q309 of INR 31.5 bn; 9M09 of INR 43 bn

Market share * of 6.6% of total average daily volumes 9M09

Research covers over 200 stocks across 19 sectors accounting for 70% of total

market capitalization

Alternate Asset Management AUMs/AUAs now stand at USD 440 mn. Launched a new

debt fund this quarter

Agency Businesses

(*) Market share based on the reported volumes on NSE and BSE


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One of the worst quarters for the equity indices globally

Risk management approach tested, kept focus on capital preservation

Moved part of the treasury allocation to Bank FDsTreasury book size reduced, but yields remained stable

Fall in arbitrage revenues, partly offset by increase in interest income and reduction inSTT

STT for the quarter was INR 11.7 cr, down from INR 24.3 cr in the previous quarter

Capital Businesses


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Interest businesses comprises of interest income on collateralized lending and theinterest earned on working capital in the form of Bank FDs

Interest income increased for the quarter by 10% reflecting higher yields on thelending book and increase in FDs base

Bank FDs as of end of quarter stood at INR 15.5 bn

As on end of quarter, lending book asset base stood at INR 8 bn (INR 10 bn at end of

previous quarter)

Maintained sufficient collateral cover across all loans, average collateral cover above2.9x at the end of the quarter

0.5% Prudential General Loan Loss Provision in the Lending Book

Interest Businesses


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4. Challenges Going Forward


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Key Challenges and Our Approach

Risks Our Approach

Business VolatilityFall in business volumes in the midst

of domestic and global financialturmoil

Diversified Business Model

Flexible resources: capital and people

Flexible cost base: nearly half of our costs arevariable in nature

Risk to CapitalSharp fall in asset prices, one of the

worst quarters for equity indices,

deteriorating credit environment

Strong risk management cultureApproach to Capital PreservationBoard level oversight

Board Risk committee headed by an external Director

Liquidity Risk

Significant asset liability mismatchescompounded by global liquiditysqueeze

Strong and Liquid Balance Sheet

Balance Sheet size of INR 33 bn, Group net-worthin excess of INR 25 bn Low gearing Reverse ALM position duration of assets is lower

than that of liabilities

Maintaining higher cash and cash equivalents


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5. Edelweiss Across the Years


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Consolidated Financials

Year Ended March 31 9M09 2008 2007 2006 2005 2004

Total Income 7,171 10,889 3,718 1,533 727 281

Total Expenditure 4,561 6,422 1,971 898 383 175

Profit Before Tax 2,610 4,467 1,747 636 345 106

Tax Expenses 962 1,540 646 218 107 28

Net Profit (after tax and minority interest) 1,455 2,732 1,099 417 237 78

Paid up Equity Share Capital 375 375 45 38 29 28

Net Worth* 25,692 23,274 7,222 1,787 539 302

Diluted Earnings Per Share (FV INR 5) (INR) # 18.81 39.99 20.76 9.34 6.43 2.42

Book Value Per Share (FV INR 5) (INR) # 269.6 246.49 93.58 39.33 15.83 9.16

(In INR mn except per share data)

(*) Includes minority interest(#) Adjusted for corporate actions, Not annualized for 9M09


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Solid Track Record of Profitable Growth

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(*) after minority interest

Revenues Profit After Tax *

NetIncomeMargin

25% 29% 26% 30% 25% 20%

I N R m n

9M I N R m n 9M


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Net Worth *

Solid Track Record of Profitable Growth

(*) Including minority interest

(#) Based on average equity for the year , annualized for 9M09

Return on Equity #

I N R m n


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6. Edelweiss Profile

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Agency-based

Capital-based

Institutional Equities

Investment Banking

Treasury

Wealth Management

Private Client BrokingTreasury

Institutional Equities

Investment BankingInvestment Banking

2000 2003 2008

Strategy of selectively building new businesses adjacent to our current offerings

Asset Management

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Well Diversified Integrated Financial Services Model

Lending


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Private EquityInvestors34.4%

Promoters

38.1%

Individuals14.6%

OtherInstitutions*12.9%

Top 5 External Shareholders #

As on 31 st December 2008

Name Percent

1 GIC (Singapore) 8.3%

2 Galleon 7.9%

3 Greater Pacific Capital 6.5%

4 Fidelity 4.3%

5 Americorp Ventures Ltd. 4.0%

(*) includes FII, DII, Insurance companies, Banks, MFs etc.(#)Holding of known affiliates have been clubbed together for the purpose of this information

Shareholding Pattern & Top External Shareholders

Quality institutional investors from different geographies


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Active Board of Directors with complementary skills

18 yrs experiencein public andprivate markets

in India

Diverseexperiencein financial

sector

Strong expertisein riskmanagement andalternate asset

management

Experiencedin global

private equity

Rashesh ShahManagement

Representative

VenkatchalamRamaswamyManagement

Representative

SanjaySanthanam

Non-Executive

KunnasagaranChinniah

Non-Executive

SunilWadhwaniIndependent

P.N.Venkatachalam

Independent

Narendra Jhaver iIndependent

Chairman & CEO ExecutiveDirector

MD & Head of RiskGalleon Group

[Head of Risk Committee]

Executive V.P.GIC, Singapore

Managing PartnerKubera Partners

Co-Founder & CEOiGATE Corporation

Former MDState Bank

of India

FormerJt. MD ICICI

Former ChairmanICICI Securities

[Head of Audit Committee]

Strongbackground inentrepreneurship

acrossgeographies

Extensiveexperience inIndian credit

markets

Extensiveexperiencein Indian

capital markets

Extensiveexperience inmanaging

Investments globally

Experienced Board of Directors with diverse areas of expertise

Six independent /non-executive directors out of eight

Independent Risk Committee headed by an external director

Strong corporate governance

RamananRaghavendran

Independent

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Experienced Management Team

Senior M anagement Team

Experienced and CapableManagement Strong track record of identifying business opportunities and executing on strategy

Depth in Management Team Experienced business heads supported by a deep layer of skilled middle managers

Continuity Track Record A large % of the senior management team have been with the company for over five years

Employee OwnershipManagement and employees together hold approximately 55% shares (including ESOPs)of the Company (20% owned by non-promoter employees)

45 Member Senior Leadership Team (SLG)

80 Member Leadership Team (LG)

VenkatRamaswamyExecutive Director

Rashesh ShahChairman & CEO

Rujan Pan jwan iAsset Management

Global RiskMember of CEO Office

Deepak MittalCFO

Naresh KothariBroking

Wealth ManagementMember of CEO Office

Vikas KhemaniInstitutional Equities

Mohan NatarajanPrivate Client Group

Peeyoosh ChaddaAsset Management

Ravi BubnaWholesale Financing


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For more information, please visit www.edelcap.com

Or email [email protected]

Thank you

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