Investor Overview-Sept 10- For printing.ppt Meet/132721_20101109.pdfprocessing & Training /...

INVESTOR OVERVIEW

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VISION

Market for MassesCreate a market for masses to build unprecedented shareholder value through a non-linear business model thatCreate a market for masses to build unprecedented shareholder value through a non-linear business model that

will transform economies, empower the common man and change lives.

Organized MarketsOrganized MarketsBuild next-generation, tech-centric, regulated markets that are more affordable, accessible to propagate the

benefits of ‘price transparency’, ‘efficient transaction’, ‘risk hedging’ and ‘structured finance’ to the masses –

helping to unlock value from the middle and bottom of the pyramid.

Largest Exchange NetworkCreate and operate the largest exchange network connecting deep, vibrant and liquid financial markets in the

fast-growing economies of Africa, Middle East, Central Asia, India, China and other Asian countries.fast growing economies of Africa, Middle East, Central Asia, India, China and other Asian countries.

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CONTENTS

BUSINESS OVERVIEW

LEADERSHIP TEAM

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FINANCIAL OVERVIEW

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GLOBAL TRENDS

GROUP COMPANY OVERVIEW

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CORPORATE GOVERNANCE

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CSO INITIATIVES

INTERNATIONAL EXCHANGE ALLIANCES

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LATEST FINANCIAL RESULT

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BUSINESS OVERVIEW

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CORPORATE OVERVIEW

A Large exchange and ecosystem network of 10 exchanges and 6 ecosystem spanning Africa to Asia across multi asset including commodities, currencies, energy and equity

FTIL GROUP COMPANIES / BUSINESS

MCX (Multi Commodity Exchange)

RANKING

#1

MARKET SHARE

84%*MCX (Multi Commodity Exchange)

MCX-SX (MCX Stock Exchange)

IEX (Indian Energy Exchange)

NSEL (National Spot Exchange)

Trading Licenses (over 585 000 cumulative licenses as on Sept 2010)

#1

#1

#1

#1

#1

84%*

53%*

87%*

98%*

80%**

Only corporate house to set-up 5 international exchanges- Dubai - DGCX (Dubai Gold and Commodities Exchange)- Singapore - SMX (Singapore Mercantile Exchange)

B h i BFX (B h i Fi i l E h )

Trading Licenses (over 585,000 cumulative licenses as on Sept 2010) #180%**

- Bahrain - BFX (Bahrain Financial Exchange)- Mauritius - GBOT (Global Board of Trade)- Botswana - Bourse Africa

Financial Ecosystem Infrastructure - including clearing corporation, collateral mgmt, risk mgmt, information vending, payment processing & Training / Education processing & Training / Education

30+ group leadership team of MD / CEO / Director with over 600 man years of experience in financial markets and technology

3600+ employees in FT Group with global presence

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* For H1 FY 2011**For FY 2009-10

FINANCIAL OVERVIEW (Standalone)

Financial Highlights for FY 2009-10EPS – Rs. 74.97 ROCE - 18%

Book Value – Rs. 443.08 RONW - 22%

Dividend - 400%

R 100 i t d M 31 2003 ld b R 11 808 S t b 30 2010

CAGR over the period of six years across all financial metrics

Total Income : 65% (from Rs. 34 cr to Rs. 411 cr)

Rs. 100 invested on Mar 31, 2003 would be Rs. 11,808 as on September 30, 2010

EBITDA : 72% (from Rs. 14.4 cr to Rs. 216 cr)

Net Profit : 80% (from Rs. 9.9 cr to Rs. 188 cr)

Diluted EPS : 101% (from Rs. 2.3 to Rs. 74.97)

Dividend : 82% (from Rs. 0.4 to Rs. 8)

The financials depicted excluding capital gain on shares (CAGR for FY 2005-10)

Financial Highlights for Quarter Ended Sept 30, 2010 Total Income : Rs. 126.52 cr ( 34% Q-o-Q)otal co e : s. 6.5 c ( 3 % Q o Q)

EBITDA : Rs. 77.01 cr ( 56% Q-o-Q)

PAT : Rs. 69.64 cr ( 54% Q-o-Q)

Interim Dividend : 100% (on the face value of Rs. 2/- per share)

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Cash and cash equivalents of Rs. 997.62 crore approx (standalone) including bank FDs and debt mutual funds as onSeptember 30, 2010

FT GROUP EVOLUTION

MCX-SXClear starts operations

BFX announced in Bahrain BFX announced in Bahrain

SMX commences operations in Singapore

MCX-SX commences operations

IEX t t tiDGCX l h d i D b i MCX kicks off live operations with DOME as the trading platform

10,000+ ODIN™ licenses installed

IEX starts operations

Bourse Africa announced in Africa

585,000+ ODIN™ licenses installed

Introduced the Country's first Derivatives trading platform

ODIN™ goes live on NSE

DGCX launched in Dubai

NBHC launched as warehousing support to MCX

GBOT announced in Mauritius

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2002 2004 2004 2006 2006 20111995 2002

BUSINESS OVERVIEW

Commodity

Exchange Business Ecosystem Business

Clearing

Stock Exchange

Multi-asset: Commodities & Derivatives

FINANCIAL TECHNOLOGIESCommodity Depository

Singapore Mauritius

Technology Business Transaction Processing

Forex Spot Energy Spot

Dubai

BotswanaBahrain

Information Digital Broadcasting

Knowledge Training

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ANNUITY BASED REVENUE MODEL

SELF-FUELINGVIRTUOUS

GROWTH CYCLE

EXCHANGE BUSINESS TECHNOLOGY BUSINESSRevenue Drivers

Licensing FeesAMC FeesCapital Gain on Shares

Revenue DriversTransaction FeesMembership Fees GROWTH CYCLE Capital Gain on Shares

Interest and Dividend Income from Investments

CustomersExchangesBrokerage HousesDPs Funds AMCs

CustomersExchanges MembersBanks

DPs, Funds, AMCs

ECOSYSTEM BUSINESSRevenue Drivers CustomersRevenue Drivers

Warehouse ReceiptFinancing RevenueStorage & Allied ServiceProcurement Revenue

CustomersBanksFarmers/TradersCentral GovernmentInstitutions

GROUP REVENUE DRIVERS

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Capital Gain on Shares Technology Revenue Exchange Revenue Ecosystem Revenue

GROUP REVENUE DRIVERS

LEADERSHIP TEAM

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FT LEADERSHIP TEAM

JIGNESH SHAHChairman and Group CEOInnovator of modern financial markets through PPP modelFounder of MCX - World’s 6th largest commodity futures exchange. Also DGCX, GBOT, IEX & SMX

th

DEWANG NERALLADirector - Technology Formerly Deputy Manager, Trading Technology Division, BSEExtensive training in exchange automation technologies with Tandem Corporation (USA)among others technologies with Tandem Corporation (USA)

V. HARIHARANDirector - Strategy

MANJAY SHAHDirector - Business Development

More than 28 years of IT experience

Worked with Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)

Responsible for Marketing and Business Development in Retail & Institutional segments

PARAS AJMERADirector - Operations and HR

13 years exp. in equities and derivatives market, domain knowledge of the cash and derivative market operations at NSE and BSE

SHREEKANT JAVALGEKARDirector - Finance

Formerly India Advisor, NexGen Fin. Sol., Singapore

Formerly MD, Lazard India, Ex- Advisor, Lazard Birla Fund

MITEN MEHTADirector - Market Development & Communications

Worked with two Fortune 500 companies in the USA

SUNIL KHAIRNARHead - Corporate Affairs

Founder Indian Agribusiness Systems Pvt Ltd

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Worked with two Fortune 500 companies in the USA Founder, Indian Agribusiness Systems Pvt Ltd.

Founder, Indian Society of Agribusiness Professionals

Founder Director, Rural Marketing Association of India

FT GROUP LEADERSHIP TEAM

ANJANI SINHAMD & CEO, NSELFormer Executive Director Ahmedabad Stock ExchangeA chartered accountant, law graduate, MBA and master of Economics and Commerce

JOSEPH MASSEYMD & CEO, MCX-SXFormer MD of Interconnected Stock Exchange of IndiaOver 20 Years of experience with LIC RBI, SHCIL & Vadodara Stock Exchange

U. VENKATARAMANCEO, MCX-SXFormer Head of Treasury at IDBI BankCertified Associate of Indian Institute of Banking and Finance

LAMON RUTTENMD and CEO, MCXPreviously served as the Chief Finance, UNCTADMember of the World Bank’s International Task Force for Commodity Risk Management

THOMAS MCMAHONCEO, SMXOver 25 years of Industry experience in Derivatives & Commodities across Asia & USA.

LATIKA S. KUNDUHead-Market Operations, MCX Stock ExchangeFormer Head, Equities Compliance, Lehman BrothersOver 15 years of experience in the Capital Markets

Former head of HongKong Mercantile Exchange (HKMEX) Former Director of NYMEX Asia.

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CHRIS GOROMONZIFounding Executive Director, Bourse AfricaEstablished the Venture Capital Company of

FRAMROZE POCHARADirector, SMXF Vi P id t O ti NSE

JOSEPH BOSCODMD & COO, GBOT

NICK BISHOPCOO, BFX

Established the Venture Capital Company of Zimbabwe (VCCZ)Co-Founder of Trust Merchant Bank, Zimbabwe

Former Vice President - Operations, NSEKey role in the transition from physical to electronic settlement at NSE

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DMD & COO, GBOTFormer MD & CEO of OTCEILed the Membership, Listings, Inspection and Corporate communications departments at NSEEstablished the legal and compliance Dept. at ICICI securities

COO, BFXVast experience in handling exchange operations and trading technologiesAssociated with reputed exchanges such as LIFFE, TFE and CBOT

FT GROUP LEADERSHIP TEAM (Contd…)

CRAIG HEWETTCBO, BFXRich commercial and exchange experience in business expansion activitiesFormer Deputy Commercial Director, LME

P. R. RAMESHChief Compliance & Legal Officer, BFXFormer SEBI Board Member on Stock Exchanges and Self-Regulatory BodiesFormer Chief, Compliance and Risk Management, SBI Capital Markets Ltd.p

JAYANT DEOMD & CEO, IEXF di ti b f S th A i F d ti

GANESH RAOCEO, IBS ForexO 25 f i i th b ki i d t Founding executive member of South Asian Federation

of ExchangesChairman of Energy sub-committee of Maharashtra Chamber of Commerce & Industries and Agriculture

Over 25 years of experience in the banking industry mostly in the area of foreign exchange tradingWorked with SBI and Bank of America as chief trader in FOREX

Dr. BANDI RAM PRASADPresident, FTKMC25 years of professional experience banking and securities marketsEx-Chief Economist - Indian Banks’ Association

ANIL CHOUDHARYMD & CEO, NBHCMore than 23 years experience in Banking and Business ManagementNominated by CII on its National Council on Agriculture Ex-Chief Economist - Indian Banks Association

Ex-Chief Knowledge Officer - BSENominated by CII on its National Council on Agriculture

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FT GROUP BOARD / ADVISORY BOARD

NARAYANAN VAGHUL Chairman - Independent Advisory Board Chairman ICICI BankFormer Chairman and Managing Director of Bank of India

P. G KAKODKARBoard of Director, FT GroupAdvisor to Societe Generale, IndiaFormer Chairman of SBI

KIRAN KARNIKMember - Advisory Board, FTILFormer President of NASSCOMFormer Senior Member of ISRO

G. N. BAJPAIMember - Advisory Board, FTILFormer SEBI ChairmanFormer Chairman of LIC of India

RAVI K. SHETHDirector, Financial Technologies GroupManaging Director, Greatship (India) Ltd.Co-founder and former Vice-President Godrej Foods

RAMANATHAN DEVARAJANDirector, Financial Technologies GroupFormer Director, Spectrum Computer Services Pvt. Ltd.Member, Management Consultancy Division, N. M. Raiji Co founder and former Vice President, Godrej Foods

Ltd.

CHANDRAKANT KAMDARDirector, Financial Technologies GroupFormer Vice-President, Vadodara Stock Exchange

Member, Management Consultancy Division, N. M. Raiji & Co.

C. M. MANIARDirector, Financial Technologies Senior Partner, Crawford Bayley & Co. Member, Bombay Incorporated Law Society since 1965, g

Chartered Arbitrator, Fraud Investigation and Anti-Money Laundering specialist

P. R. BARPANDEDirector, Financial Technologies Audit partner for C C Chokshi & Co thereafter with

Member, Bombay Incorporated Law Society since 1965Director in Godrey Phillips India Ltd., Hindalco Industries Ltd., and several other prominent companies

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Audit partner for C.C. Chokshi & Co, thereafter with Deloitte Haskins & SellsActively involved in reformatting the accounts to US GAAP and IFRS for major domestic and multi-national companies and Indian Banks


ASHOK JHA, IAS (Retd.)Non-Executive Chairman, MCX Stock Exchange Ltd.Former President, Hyundai Motor India Ltd.Former Chairman, Foreign Investment Promotion Board (FIPB)

VENKAT CHARY, IASChairman, MCXEx-Chairman, FMCEx-Secretary to the Chief Minister of MaharashtraEx-Vice Chairman, Maharashtra State Road Transport Corporation

Dr. S. A. DAVEIndependent Director, MCX Stock ExchangeChairman, Centre for Monitoring Indian Economy Ltd. (CMIE)Former Chairman, Securities and Exchange Board of India

ASHA DASNominee Director of the FMC Over 37 years of leadership experience with the Indian Administrative ServiceRepresentation experience at the Executive Committee

S. VENUGOPALMember - Advisory Board, MCXFormer Assistant Professor of EconomicsA i t d i th l ti f t d t

CHARLES SEEGERMember - Advisory Board, MCXFormer Senior Vice-President and Counsel for Chicago M til E h (CME)

(SEBI) p p

level with the UN

LAWRENCE LEIBOWITZMember - Advisory Board, MCX

VEPA KAMESAMDirector – MCX-SX

Assisted in the resolution of stressed asset casesMercantile Exchange (CME)Chairman and Chief Executive Officer, Financial Markets International Inc.

S. S.THAKURDi t MCX SX

A. V. RAJWADEM b Ad i B d MCX SX

Member Advisory Board, MCXFormer Chairman, Nasdaq Quality of Markets CommitteeFormer Managing Director and Chief Operating Officer, UBS Americas Equities

ecto MC SFormer Deputy Governor of RBIManaging Director of Institute of Insurance and Risk Management, Hyderabad

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Director – MCX-SXFormer Controller of Foreign Exchange, RBIChairman of Central Depository Services (India) Ltd.

Member – Advisory Board, MCX-SXFormer Director, CRISILMember on important committees of RBIAuthor of widely read weekly column “World Money”


VIJAY IYENGAR Director - SMXFounder and Managing Director, AgrocorpChairman, Singapore Indian Chamber of Commerce and Industry (SICCI)

ANG SWEE TIANChairman, SMXFormer President of Singapore Exchange (SGX)Established SGX AsiaClearServed in Monetary Authority of Singapore

TAN SOO NANDirector - SMXFormer Chief Executive Officer, Temasek Capital Pte. Ltd. Chief Executive Officer, Singapore Pools Pte. Ltd.

MYRON SCHOLESMember - Advisory Board, SMXWinner of Nobel Memorial Prize in Economics, 1997, for the Black-Scholes pricing model

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MOHAMAD A. VAYIDDirector, GBOTFormer Chairman and Managing Director, British-American Tobacco Co. Ltd. (BAT) Founder Chairman and Managing Director Strategic

DAVID YEOWMember - Advisory Board, SMXMember of disciplinary committee, SGX-DTFormer Member, Debt Capital Market Working group,

Founder Chairman and Managing Director, Strategic Management Consultants Ltd.

Singapore

RANAPARTAB TACOURIDirector, GBOTAssumed key roles with Bank of Mauritius including

SULLIMAN ADAM MOOLLANDirector, GBOTFormer Chairman, Stock Exchange of Mauritius Ltd.y g

that of Managing DirectorFormer Managing Director, Development Bank of Mauritius

Chairman, Bramer Asset Management Ltd.

S. K. TUTEJA R. V. SHAHIb d

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Director, IEX Former consultant to the World Bank and UNIDOFormer Secretary to the GOI in the department of Food & Public Distribution

Member – Advisory, IEXFormer Secretary to the GOI, Ministry of PowerFormer Chairman and MD of BSES LtdChairman (Executive) of Energy Infratech Pvt Ltd


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FINANCIAL OVERVIEW

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FINANCIAL GROWTH (Standalone) excluding capital gain on shares

TOTAL INCOME (CAGR: 65%) Rs. Million EBITDA (CAGR: 72%) Rs. Million

PAT (CAGR: 80%) Rs. Million BASIC EPS (CAGR: 78%) Rs. /share

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Financial Year: April – MarchCAGR is calculated for FY 05-10

FINANCIAL GROWTH (Standalone) including capital gain on shares



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FINANCIAL GROWTH (Consolidated) including capital gain on shares



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FINANCIAL HIGHLIGHTS – Over two years (Standalone)

FY 09-10

3,070

FY 08-09

3,343

FY 07-08

1,376

GROWTH OVER TWO YEARS

123%OPERATING REVENUES

(in Rs. million)

INCOME STATEMENT

3,070

4,114

2 163

3,343

4,994

2 655

1,376

2,311

1 384

123%

78%

56%

OPERATING REVENUES

TOTAL INCOME

EBITDA 2,163

1,880

2,655

2,065

1,384

970

56%

94%

EBITDA

PAT

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Financial Year: April – MarchNote: Above stated financials are excluding long term capital gain on shares

FINANCIAL HIGHLIGHTS – For quarter ended Sept 30, 2010 (Standalone)

INCOME STATEMENT Q-O-Q GROWTH

(in Rs. million)

QUARTER ENDED

SEPT 30, 10 JUNE 30, 10

48%

34%

OPERATING REVENUES

TOTAL INCOME

1,092

1,265

736

942

116%

54%

PROFIT FROM OPERATIONS

PAT

577

696

267

452

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FINANCIAL HIGHLIGHTS – For Half ended Sept 30, 2010 (Standalone)

INCOME STATEMENT Y-o-Y GROWTH

(in Rs. million)

HALF YEAR ENDED

SEPT 30, 10 SEPT 30, 09

27%

25%

OPERATING REVENUES

TOTAL INCOME

1,828

2,207

1,441

1,772

32%

39%

PROFIT FROM OPERATIONS

PAT

844

1,148

641

825

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SUMMARIZED BALANCE SHEET (Standalone)

(in Rs. million)

SOURCES OF FUNDS

AS ON MAR 31, 10PARTICULARS

AS ON SEPT 30, 10

AS ON MAR 31, 10PARTICULARS

APPLICATION OF FUNDS

AS ON SEPT 30, 10

SOURCES OF FUNDS

Shareholders’ Funds

Share Capital

Reserves & Surplus

92

20,325

92

21,364

2,739

20,019

APPLICATION OF FUNDS

Fixed Assets

Investments

2,854

20,495

Loan Funds

Unsecured Loan

Zero Coupon Convertible Bonds

Deferred tax liability (Net)

4,085

88

4,065

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(52)

4,356

2,472

1,884

FCMITDA*

Current Assets, Loans & Advances

Less: Current Liabilities & Provisions

Net Current Assets

-

4,889

2,637

2,252y ( )

FCMITDA*

TOTAL

-

24,590

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25,601 24,590TOTAL 25,601

STRONG BALANCE SHEETNet worth of Rs. 21,456 million as on September 30, 2010

Company has cash and bank balances of Rs. 1,828 million and mutual funds of Rs. 8,149 million (aggregated to Rs. 9,977 million) as on September 30, 2010

Zero Coupon Convertible Bonds (ZCCB) of Rs 4 065 million (USD 90 5 million) as on September 30 2010

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Zero Coupon Convertible Bonds (ZCCB) of Rs. 4,065 million (USD 90.5 million) as on September 30, 2010

*Foreign Currency Monetary Item Translation Difference Account

SHAREHOLDING HIGHLIGHTS as on September 30, 2010

FINANTECHFINTECH

Code: NSEBSE

STOCK INFORMATIONSHAREHOLDING STRUCTURE*

Bloomberg / Reuters FTECH:IN / FITE.BO

No. of Shares Outstanding (I )

46.08(In mn)

46.08

Closing Price*(In Rs. / share)

1,154.25 (BSE)

k lMarket Capitalization*(US$ bn)

1.19**

52 week high / low (In Rs. / share)

1721.95 / 1,135.10 (BSE)

MAJOR INSTITUTIONAL SHAREHOLDERS

Passport Capital LLC A/C

Reliance Mutual Fund

Elliot and page limited A/C AIC advantage fund II

PROMOTERS HAVE NOT PLEDGED ANY OF THEIR SHARES

52 week high / low(In Rs. / share)

1723.00 / 1,138.20 (NSE)

Acacia Partners, LP

FID Funds Mauritius Limited

Deutsche Securities Mauritius Limited

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PROMOTERS HAVE NOT PLEDGED ANY OF THEIR SHARES

*As on Sept 30,2010, Rounded **Exchange Rate on Sept 30, 2010, US$ 1: 44.88 Rs. (Source: RBI reference rates)

GLOBAL TRENDS

OTC contracts do not have Mark To Mark value adjustments

OTC do not have central clearing house guarantee

ETC provides fungibility higher liquidity and no counter party risks

OTC MARKETS TO REGULATED MARKETS

ETC provides fungibility, higher liquidity and no counter party risks

OTC lack regulatory control and transparency -

STANDALONE EXCHANGES TO EXCHANGE NETWORK

New World Economic Order - globalization has led to integration of economies. Markets need to be connected in flat world!

Cross-listing and clearing of products

Margin credit across exchanges and carry-forward of positions

Hedging and leveraging across time zones

STANDALONE EXCHANGES TO EXCHANGE NETWORK

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Economies of scale across operations and network effect on liquidity

NON-ELECTRONIC TO ELECTRONIC GLOBAL TRADE TRANSACTIONS

Exchanges offer fast, secure, transparent and regulated platform for transactions

ROLE OF EMERGING ECONOMIES FROM PRICE TAKER TO PRICE SETTER / INFLUENCER

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ROLE OF EMERGING ECONOMIES FROM PRICE TAKER TO PRICE SETTER / INFLUENCER

ROAD AHEAD

Create exchanges in emerging markets in Africa, Middle East and Asia Pacific region to connect some of the fastest growingeconomies

New asset classes likeInterest Rate DerivativesSME Equity and F&OBonds and other products and asset classes

Build a robust eco-system to support new marketsClearingDepositoriesASP services - e.g. Back office

Provide the best of transaction and risk management technology to match the breadth and depth of the market growthproviding highest integrity and scalability

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GROUP COMPANY OVERVIEW

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CORPORATE OVERVIEW & OPERATIONAL GROWTH -MCX

6th largest commodity futures exchange globally in terms of number of contracts traded on the exchange**

1st in silver**

HIGHLIGHTS AVERAGE DAILY TURNOVER (Rs. Cr)

2nd in gold, copper and natural gas**3rd in crude oil**

Average Daily turnover of Rs. 28,145 crore has been recorded for H1 FY 2011 (~53% up from H1 FY 2010 turnover)

Established 160,948 terminals (including CTCL and IBT terminals#) and a membership base of 2,091 as on September 30, 2010

International Alliances - NYMEX, CCX, LME, Liffe Administration & Management and others

MCX was conferred with the FICCI Socio Economic Development Foundation (SEDF) CSR Award – 2009 for its flagship CSR project, Gramin Suvidha Kendra (GSK), a joint initiative with India Post

MCX DOMESTIC MARKET SHARE*

*For H1 FY2011

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**Based on trading volumes derived on the basis of un-audited data provided in the FIA, March 2010 Publication, based on the data provided by 70 individual futures and options exchanges

# CTCL – Computer To Computer Link, IBT – Internet Based Terminal

Note: Turnover figures are at Exchange level (single-sided)

CORPORATE OVERVIEW & OPERATIONALGROWTH - MCX-SX

India’s new national level Stock Exchange recognized under Section 4 of Securities Control Regulation Act, Government of India

Leader in offering nationwide electronic platform to trade in

HIGHLIGHTS AVERAGE DAILY TURNOVER (Rs. Cr)

Leader in offering nationwide electronic platform to trade in Currency (FX) and poised to extend the same to Interest Rate Futures (IRF), Equities (Cash & F&O, Small Medium Enterprises) and Debt***

Alliances with FIEO, CIO, FIMMDA and FEDAI

MCX-SX CLEARING CORPORATION LIMITED (MCX-SX CCL)

3rd approved clearing house by SEBI and RBI

LAAA - highest credit quality rating by ICRA

Margins fixed as per CME (Chicago Mercantile Exchange) SPAN Margins fixed as per CME (Chicago Mercantile Exchange) SPAN (Standardized Portfolio Analysis of Risk) margin system +1% ELM (Excess Loss Margin)

OPERATIONAL MATRIX

Approved No. of Members 690

AS OF SEPTEBER 2010

MARKET SHARE*

Cities Participated Across India

Average Daily Turnover# (Rs. Cr)

Highest Turnover (Rs. Cr)

Average Daily Volumes (Contracts)

Highest No. of Contracts Traded (lots)

519

15,511

24,234**

3,272,858

5,326,990**

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*In terms of value traded for the H1 FY2011, Source: Exchange Websites** on 11th May 2010***Subject to regulatory approval

# for the quarter ended Sept 30, 2010

CORPORATE OVERVIEW & OPERATIONALGROWTH - IEX

India’s No. 1 power exchange with 87% market share*

Number of Members - 78*, Total Clients - 485*

HIGHLIGHTS MARKET SHARE*

Average Daily Volume for Q2 FY 2011 – 34,752 MWh

The exchange has 29 state utilities, 110 Private generators and over 354 direct consumers participating for better managing their energy portfolioe e gy po t ol o

Indian Energy Exchange (IEX) was awarded as Best E-Enabled Customer Platform, for developing a robust platform for energy trading, in 2nd India Power Awards 2009, by Council of Power Utilities & KW Conferences Pvt. Ltd. AVERAGE DAILY VOLUMES MWH#

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*For H1 FY2011 Day Ahead Market# For Day ahead market

Source: Based on volume traded in MWh; as provided in the monthly reports on short-term transactions of electricity by CERC

CORPORATE OVERVIEW & OPERATIONAL GROWTH - NSEL

NSEL is India’s No.1 spot exchange with a market share of over 98% compared to other Spot exchanges based on the half year ending Volumes of FY 2010-11

Karnataka

Rajasthan

G j t

HIGHLIGHTS NSEL PRESENCE IN INDIA

Tamilnadu

West Bengal

Bihar

It is operational in 25 commodities across 13 states in India with its most active contracts being castor seed, cotton seed wash oil, cotton, barley and maize

Number of Members as on September 30, 2010 – 366

Gujarat

Delhi

Madhya Pradesh

Maharashtra

Andhra Pradesh

Bihar

Orissa

Chattishgarh

Haryana

Number of TWS as on September 30, 2010 – 1,980

NSEL launched a unique investment product in the form of e- gold and e-silver on its platform. AVERAGE DAILY TURNOVER (Rs. Mn)

NSEL began spot delivery contracts for agri commodities such as soybean, chana, wheat, mustard and coriander seeds at Guna in Madhya Pradesh

NSEL has tied up with Shree Ganesh Jewellery House Ltd. (SGJHL) to launch electronic trading of gold bars and coins under the brand Gajagold

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FT GROUP - INTERNATIONAL EXCHANGE BUSINESS

(www.dgcx.ae)

One of the leading international commodities and currencies derivatives marketplace in Dubai that bridges the time zones between Europe and the Far East set up in a free trade zone with a 50-year tax holiday

It currently trades in U.S. Dollar-denominated futures contracts in gold, silver, crude oil, steel and fuel oil as well as currency futures contracts. DGCX also trades option contracts in gold futures.

DGCX September volumes increased 63% year on yearDGCX September volumes increased 63% year on yearTotal volumes for September 2010 reached 156,740 contracts, a 63% increase on last year and valued at US$ 7.85 billion Year to date volume stands at 1.36 million contracts, a 37% increase on last yearSeptember volumes also rose 41% on last month, as trading activity on the Exchange acquired greater momentum

Singapore Mercantile Exchange (SMX) is a pan-Asian global commodity derivatives exchange based out of Singapore and is poised to offer futures and options contracts on precious metals, base metals, agriculture commodities, energy, currencies and commodity indices

SMX will act as a proxy to the Asian economies and facilitate transparent price discovery and benchmarking in Asian time zone by

(www.smx.com.sg) offering a single platform for execution of trades, clearing and settlement

SMX is a member of Futures Industry Association (FIA), Associations of Futures Markets (AFM), and Futures and Options Association (FOA). SMX also provides settlement guarantee as a central counterparty for all trades executed on it through itswholly owned clearing corporation, Singapore Mercantile Exchange Clearing Corporation Pte Ltd. (SMXCC)

Monetary Authority of Singapore (MAS) has granted SMX the final approval to operate as an international commodity and d i ti h g currency derivatives exchange.

SMX commenced operations on its cutting-edge electronic trading platform with the ringing of the opening bell by Mr. Ong Chong Tee, Deputy Managing Director of the Monetary Authority of Singapore (MAS) on 31st August 2010.

The four SMX futures contracts launched from the first day of trading on its platform include two leading crude oil benchmarks –Euro-denominated Brent Crude and West Texas Intermediate (WTI), a currency pair – Euro-US Dollar Currency Futures Contract and the first Gold futures contract in Singapore to be settled via physical delivery

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and the first Gold futures contract in Singapore to be settled via physical delivery.

Further products will be rolled-out in market segments such as Energy, Agriculture, Metals (precious and base), Indices, and Currencies.

FT GROUP - INTERNATIONAL EXCHANGE BUSINESS

(www.gbot.mu)

Global Board Of Trade (GBOT) was incorporated in the Republic of Mauritius to establish a multi-asset class electronically operated market, licensed by the Financial Services Commission (FSC), the regulator for non bank financial services sector inMauritius

GBOT provides a comprehensive framework, encompassing electronic exchange trading and clearing solutions, risk management and online risk-based supervision, membership development, contract specification and structuring. GBOT also provides banking system interfaces leading to real-time settlement business rules and by-laws effective corporate governance banking system interfaces leading to real-time settlement, business rules and by-laws, effective corporate governance frameworks, investor awareness and knowledge development

The Global Board of Trade (GBOT), was officially launched on 15th October 2010 by the Guest of Honour, Dr The Honourable Navinchandra Ramgoolam, GCSK, FRCP, Prime Minister of the Republic of Mauritius at the InterContinental Resort, Mauritius

GBOT offers trading in Gold and Silver futures as well as USD/MUR, ZAR/USD, EUR/USD, GBP/USD and JPY/USD futures. For the first time worldwide, two African currency futures are being traded on this platform.

The Bahrain Financial Exchange BSC Closed (BFX) is a pioneering cross-border and multi-product exchange in the Middle East and North Africa and will be internationally accessible to trade cash instruments, derivatives, structured products and Shari’ah-compliant financial instruments

(www.bfx.bh)Regulated by the Central Bank of Bahrain (CBB) and underpinned by the BFX Clearing and Depository Corporation (BCDC), the BFXis well positioned to become the leading exchange venue in the Middle East to trade, clear and settle the contracts it trades

Complementing its offerings, the BFX has established the Bahrain Financial Exchange Training Institute (BFX-TI) a training institute of global standards providing internationally accredited programmes in conventional and Islamic financial training, along with education courses for both individuals and corporate clients

( b f i )

Bourse Africa is a licensed spot and derivatives demutualised exchange which will offer multi-asset class trading to serve markets worldwide from Africa. It will provide efficient price discovery, and facilitate trade, financing, risk management and investment transactions between participants from across African markets, and between African and international participants

Bourse Africa will operate on a hub and spoke model a network of linked exchanges with Botswana as the technology and

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(www.bourseafrica.com) Bourse Africa will operate on a hub and spoke model, a network of linked exchanges with Botswana as the technology and regulatory hub. The hub exchange in Botswana is licensed as a Self-Regulatory Organisation by the country’s Non-Bank Financial Institutions Regulatory Authority and accredited under the Botswana International Financial Services Centre

CORPORATE OVERVIEW & OPERATIONAL GROWTH - NBHC

Depository business for facilitating structured credit (trade finance) against commodities from banks

Presence 19 States

Sales & admin offices 73

N b f C t Cli t 30

OPERATIONAL HIGHLIGHTS AS ON SEPT 30, 2010HIGHLIGHTS

Offers collateral management services to leading public and private sector banks

NBHC associated banks provide approximately over 60% of agriculture credit

“Category F” membership with Grain and Feed Trade Association

Number of Corporate Clients 30

Warehousing Storage capacity 1.62 million MT

Storage Space 12.27 million sq ft“Category F” membership with Grain and Feed Trade Association (GAFTA)

Only Indian Warehousing and Commodity Management solution entity with a ISO 22000:2005 certification

Products & Services

Storage Space 12.27 million sq ft

Storage facilities 553

Quality Assurance & Pest ManagementFunctional QA Laboratories 31 (200+ mobile labs)oducts & Se v ces

Warehousing and Commodity ManagementCommodity ProcurementCollateral ManagementTrade Intelligence and Support

T t l l t th f 1000

Number of Commodities tested 130+

Number of Certificates Issued (For H1 FY 2011) 41,144+

Collateral Management (CM)No of Banks associated with 34Total employee strength of 1000+

Network of 25 offices across India

No. of Banks associated with 34

Number of commodities funded 150+

CM Cumulative Funding facilitated Over Rs. 14,500 cr

Geographical spread 900+ locations

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CORPORATE OVERVIEW & OPERATIONAL GROWTH - atom

atom was incorporated in October 2005 and provides technology aimed at mobile phone and wireless device users

atom IVR TRANSACTION VALUES (Rs. crore)HIGHLIGHTS

atom has created multiple products and services for mobile payment, mobile banking, Interactive Voice Response (IVR) based payments and mobile based service distribution network. The transactions are routed through banks’ payment gateways using phones

Company has the following lines of businesses:1. Payment Processing2. Technology solutions and services3. Financial inclusion services

atom has already entered into tie ups with 200+ merchants 13+ atom has already entered into tie-ups with 200+ merchants, 13+ banks and 3 telecom companies in India atom IVR TRANSACTION VOLUMES (in millions)

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FT GROUP - ECOSYSTEM BUSINESS

TickerPlant disseminates realtime information on financial markets through a variety of delivery channels viz Desktop based applications, browser based applications, Mobile applications and the internet. It has entered into agreements with all leading domestic and international exchanges as well as leading data vendors and content providers.

Ai i d d li l i k d i i lli f i dl f h li

(www.tickerplantindia.com)

Aims to organize and deliver real-time market data in an intelligent, user-friendly format that supports quality decision making

Key clientele: Axis Bank, IDBI, DCB, Times of India, GE Shipping, Thomas Cook & TATA communications, Yahoo, Reliance Capital

Knowledge centre led by a team of researchers, analysts, and faculty with expertise in their domain

Consultancy and Advisory Services in commodities and financial markets

FTKMC has franchisee at 10 places as well as tie up with APTECH in 11 cities(www.ftkmc.com)

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CSO INITIATIVES

v

CSO INITIATIVES

INTERNATIONAL EXCHANGE ALLIANCES

v

LATEST FINANCIAL RESULT

v

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Globally recognized leaders from technology and financial market space

Highly accomplished and acclaimed industry leaders with rich and diverse wealth of experience from managing corporates to exchange regulators, bureaucrats etc.

Committees consisting of world-class professionals representing an appropriate and diverse mix of skills and experience

Adherence & compliance with Clause 49 of Listing Agreement

CG Policy encompasses - transparency, accountability, trusteeship, ethical corporate citizenship and management responsibilities, as well as Insider Trading Dealing Code to comply with the Insider Trading Regulations issued by SEBI.

Financial Downloads - 5 year overview of both standalone and consolidated business, quarterly financials and annual report

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CSO INITIATIVES

Gramin Suvidha Kendra (GSK)

GSK is now part of BCTA (Business Call to action), a multi stakeholder platform that challenges and

ECONOMY GROUP CSO-INTERNAL ENGAGEMENT

4th all India Blood Donation drive forFTG companies conducted on 11th

August across 11 locations across theencourage companies to develop innovative business models to meet development as well as business goals.

23rd GSK center launched at Jewargi Sub Post office in Gulbarga district of Karnataka. This is the 2nd center in Karnataka and 3rd with Financial assistance of MoPR

d th RBH j t

country with 356 blood unitscollected

Joy of Giving Week launched on Sep 28- Oct 02 . Fiveemployees volunteered for Mumbai Mobile Creches Elevenunder the RBH project.

More than 1200 new farmers registered in 2nd quarter of 2010-11 at the 23 GSK centers reaching to more than 2200 villages in 5 states. The total number of registered farmer is 9702 as on Sept-10.

NABARD and FMC contribute Rs 10.5 and Rs 5.25 Lakh

employees volunteered for Mumbai Mobile Creches. Elevenemployees contributed financially to Meljol. ClothesDonation Drive conducted:23 boxes of old clothes donated toNGO, Goonj.

h hi i i P d frespectively for 300 farmer training programs at GSK locations in 2010-11. 65 Farmer training and awareness programs conducted in 2nd quarter of 2010-11.

One year Patience Assistance program launched for girls from GSK villages in partnership with Johnson &

h

Khushi Ki Kiran Programme revamped forvolunteering activities for FTGemployees. Fifteen employees alreadyparticipated in activities like reportwriting, content development andrecreational activities with enrolledNGO’s which include, CCDT, Childline

d S tJohnson.

Agri input sale of more than 3.5 lakh done at GSK centers as on Sept 2010.

Kherwadi Social Welfare Association (KSWA) NGO has been shortlisted for support by FTG for the 8th Mumbai

and Support.

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pp yMarathon 2011. KSWA works for the underprivileged youth for their livelihoods.

FINANCIALS FOR QUARTER ENDED SEPT 30, 2010

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FINANCIALS FOR QUARTER ENDED SEPT 30, 2010

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SAFE HARBOR STATEMENT

Certain statements in this presentation contain forward-looking information about Financial Technologies (India) Ltd. and its group companies, including their business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or concern future financial performance (including revenues, earnings or growth rates), possible future plans and action of the company. Forward-looking statements are based on current expectations and understanding about future events.

They are inherently subject to, risks, uncertainties, and assumptions, etc about the Company, economic factors and the industry in general. The Company’s actual performance and events could materially differ from those expressed or implied by forward-looking statements made by the company due to, but not limited to, important factors such as general economic, political and market factors in India and internationally, competition, technological change, and changes in the government regulations.

INVESTOR RELATIONS CONTACTS:

Shreekant JavalgekarDirector - FinanceT: [email protected]

INVESTOR RELATIONS CONTACTS:

Miten MehtaDirector - Global Market Development & CommunicationsFinancial Technologies GroupUS: +1 914 613 3006 India: +91 993 026 8040

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[email protected]

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