Business

Presentation

November 2019
Agenda

• ICICI Securities at a glance

• Strategy

• Business Performance

• Financial Results

• Industry Overview
Our journey
Strategic Component of the ICICI Ecosystem
ICICI Bank &
JP Morgan JV

Corporate Finance
I-Sec Inc Singapore Wealth
Institutional Broking Management

1994-1995 2000-2001 2005-2006 2007 to 2009 2011 onwards

Retail Broking Distribution network

I-Sec Inc – USA Merger of Retail & Inst.

businesses

3
Large growing franchise
Operational accounts and active clients growth of 12% CAGR

Operational accounts (mn) Active clients (mn)

1.3
4.4

2.5 0.7

FY-14 FY-19 FY-14 FY-19

Includes only retail clients

4
Market share
Growing market share across categories

Equity & Derivative MF AuM market share MF revenue market share

market share (%)1 (%)2 (%)
FY14 (4.5%) FY19 (8.5%) FY 14 (1.1%) FY 19 (1.9%)
4.0
8.6
7.5 7.7
2.3 2.6 2.9

4.1

0.6 0.9

Equity Derivative Equity Debt FY-14 FY-19

1. Number in brackets - Overall blended market share

2. Number in brackets - Overall MF market share including equity & debt, ISec AUM does not include direct plan
Source AMFI, SEBI 5
Equity Capital Markets
Strong position in equity capital market (ECM)

IPOs market share ECM market share Advisory market share

(amount raised) (amount raised) (amount raised)
38%
41%
7%

30%

4%

0%

FY-14 FY-19 FY-14 FY-19 FY-14 FY-19

Source Prime database, Venture intelligence

ECM: IPO/FPO/InvIT/REIT, QIP/IPP, Rights issue, Offer for sale 6
ICICI Securities has built an enviable franchise…

4.6 mn Growing customer base

Largest Equity franchise in terms of revenue

Assets under advise of our wealth clients1
>`800 bn Amongst leading wealth franchises
2nd Largest non-bank mutual fund distributor by revenue2

1st Rank in the IPO by value3

1. Clients having assessed profile and minimum assets of 75 lacs with us (equity assets are maintained in demat with ICICI Bank)
2. Source: AMFI (MF commission) period FY2019
3. IPO: IPO, FPO, InvIT (Investment trusts), REIT period H1-2020, Source: Prime database
7
… and a sticky customer base over the years
High Customer Stickiness

Revenue contribution by customers who have been

with us for more than 5 years

> 65% 1
This trend is consistent and is reflected
continuously for the five prior years including the
recently ended FY19

1. Based on retail broking revenues

8
Agenda

• ICICI Securities at a glance

• Strategy

• Business Performance

• Financial Results

• Industry Overview
Working towards broadening the positioning

Wealth &
Investments
Imperatives:
• Broad basing business model
• Diverse and granular revenue streams
Assets &
Loans Protection

To be seen as comprehensive financial solutions provider for the affluent Indian -

Powered digitally
10
Strategy: Strengthening the core and building the future
A. Ramping up scale and value
by augmenting and aligning
growth engines

E. Operating leverage B. Monetize client value

through cost efficiency

D. Robust technology and C. Improving customer

digital agility experience

11
A. Ramping-up scale & value by augmenting & aligning growth
engines

Bank win-win Digital on- Business

partnership boarding partners

• Natural alignment: New • Re-engineer • Digitally offer B2B2C

revenue sharing entire on- proposition to scale
agreement boarding business partners:
process • On-boarding of partner
• Sourcing focus:
• On-boarding of clients
Targeting affluent and
by the partner
equity affinity client
• Client management and
segments
platform support
• Enlarge focus: NRI

Better customer quality Modernise and Broad base

and higher activation scale-up growth

12
Progress: Improvement in active client share
Ramping scale & value
• Quality of Sourcing Market share2 in active client base (NSE)
• New arrangement with ICICI Bank
• Activation rate1 up from 33% to 46% for client sourced by bank

10.07%
10.03%

10.02%
• Number of active NCA up by 22%

9.90%
9.81%
9.77%
• Launched subscription based plan

9.72%
9.70%

9.67%
9.63%

9.61%
• Over 1.6 lac subscriptions as at end Q2-FY2020

9.59%
9.55%
9.53%
9.50%

9.50%
9.48%
9.48%
9.47%

9.45%
• NRI

9.40%
9.38%
• Started sharing digital leads with UAE & Bahrain, making
onboarding process smoother for customer
Business partners

Mar-18

Mar-19
Jun-18

Sep-18

Nov-18

Jun-19

Sep-19
Feb-18

May-18

Aug-18

Feb-19

May-19

Aug-19
Apr-18

Dec-18

Apr-19
Jan-18

Jul-18

Oct-18

Jan-19

Jul-19

Oct-19
•
• Network at 8,000+ in Q2-FY2020, up by 29%
• Digital Sourcing
• Improvement in daily run rate of accounts opened • 9.1 lac NSE active clients2
completely online • Consistently adding active clients for last 9 months
• Tab based instant account opening; monthly run rate of • Equity blended market share up by 90bps from
~ 9,500 7.8% in Q2-FY2019 to 8.7% in Q2-FY2020

1. % of New client acquisition (NCA) who traded within 90 days of account getting opened.
2. Trailing 12 month; Source: NSE
13
Period: Q2-FY2020 vs Q2-FY2019, QoQ: Q2-FY2020 vs Q1-FY2020
B. Monetize client value
Insta digital loans as a new asset class
01 Digital lending to eligible customers for personal, auto
loan, home loan top-up, credit card, LAS and deposits

Digital Insurance
02 Ramping up distribution of insurance digitally
• Health, Travel, Auto, Two wheeler and Term
Enhancing product choice and product options

03 Margin trading facility

MTF extended on NSE
ESOP funding
04
Leveraging ESOP funding to build high quality client
sourcing and enhancing revenue stream

05 Strengthening wealth management franchise

Comprehensive proposition for wealth clients including
curated proprietary offering
14
Progress: Enhancing completely digital product suite
Monetising client value
• Launched digital distribution of loans
• 0.9 million unique clients for pre approved loans based on bank’s credit criteria
• Digital personal loans and credit cards and auto loan top up launched

• Tie ups with insurance companies to digitally distribute insurance products

• Tie ups with Religare health and Star health
• Launched full suite of Health Insurance products with Religare Health in the stand alone health
category
• Margin trading facility extended on NSE on September 27, 2019
• ESOP funding: Ramping up book size
• Proprietary PMS for HNI clients: Growing AUM

15
C. Enhancing engagement for client retention & penetration
Traditional approach Client engagement New approach

Self directed Digital based advisory

Relationship mgmt.
supplemented by voice RM

Pay per use Onboarding clients Subscription based

Individual stock based One click investment in

Research connect recommended bundle of stocks
recommendation

Self developed limited Augmenting using fintech

Trading strategies
tools tools

Investment only Investment, protection,

Scope
loans & deposits

16
Progress: Curated engagement solutions
Enhancing engagement for client retention & penetration
• AI based tool for identifying next best action and next best product/service
• Pilot campaign initiated across 3 equity and 2 non-equity product/service
• Low touch engagement model
• License from IRDAI for Distance Marketing obtained on August 21, 2019
• Working on a pilot to offer low touch engagement model for insurance
• Launched One Click Investments on August 3, 2019
• 19 curated baskets of research recommended Mutual Funds
• Easy, convenient and automated portfolio allocation into basket of Mutual Funds
• Liquidity proposition ‘eATM’ extended on NSE on June 7, 2019
• New pricing plan for derivative product launched on September 25, 2019
• New brokerage plan in options being piloted
• Initial response encouraging

17
D. Robust technology and digital agility
Robust technology strength
Secure, stable and fast system
• Reliable
• Avg. response time of 24 ms
• Peak concurrent users ~ 48k
Established framework for managing
customer privacy & information security
3-tier recovery system and strong
business continuity processes
Digital agility
Open architecture & partnership
• Use API architecture to onboard
fintech partners
• Partner with fintech to offer customer
centric solutions
Increasing use of data analytics
• Infuse new talent
• Infuse new technologies
Improved user experience
• New interface website
• New mobile app
18
Progress: Fintech partnership based digital capabilities
Digital agility
• API architecture launched in September 2019
• Fintech partnership based digital capabilities
• Digital Team to scan the environment for identifying new technologies and opportunities
• Projects evaluated: 63, Projects moved to UAT: 1, Projects POC/Launched: 1, Project under
integration process: 1
• Launched
• AI based tool to increase customer engagement
• Under Implementation
• Trading strategy formulation tool for derivatives
• Comparison tool for insurance
• Upgrading client engagement platform
• Launched new website, currently in beta version
• Reengineering our mobile app including new UI/UX

19
E. Operating leverage through cost efficiency

Re-evaluate branch infrastructure cost based on productivity, area efficiency and rentals

Centralization of certain vertical to optimise infrastructure and manpower cost

Process re-engineering to optimize acquisition related cost

Harnessing synergies within teams and business groups to optimize manpower

Migrating to digital/low touch coverage models

Strong focus on inculcating cost culture to enable identification and

enhance cost efficiency on an on-going basis 20
Progress: Rationalising cost structures
Operating leverage through cost efficiency

• Overall cost down by 7%

• Employee cost down by 7%

• Head count down by 8%

• 5% decrease from 4,298 in June 2019 to 4,077 in Sept 2019

• Branch count down from 202 to 187

Period: Q2-FY2020 vs Q2-FY2019 21

Agenda

• ICICI Securities at a glance

• Strategy

• Business Performance

• Financial Results

• Industry Overview
Business Performance
Growing client base and engagement
Operational accounts,
4.6 mn1
• 4.6 million strong base of operational
accounts; up by 9% YoY

Ever traded,
• 13.3 lac overall active clients, increased by 2.8 mn2
5% YoY
Overall Active
• 9.1 lac NSE active clients, increased by 7% 1.3 mn3

YoY
NSE Active,
0.9 mn4

1. Operational accounts is the total client base with the company

2. Ever traded are the clients who have transacted at least once on our platform
3. Overall active clients are the clients who have transacted at least once during trailing 12 months across all product categories
4. NSE active client base are the clients who have traded at least once during trailing 12 months
Period: Q2-FY2020 vs Q2-FY2019 23
Equities business
Blended market share I-sec ADTO (` billion)

9.0%

8.6%
8.5%

711
7.8%

7.3%
6.6%

556
533
4.7%
4.5%

372
187
101
65
44
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20

Derivative market share Equity market share

9.1%

8.7%
8.6%
8.6%
7.8%

7.8%
7.7%
7.5%

7.4%

7.4%
7.4%
7.3%

7.1%
6.5%
4.4%
4.1%

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20

28% growth in I-Sec ADTO, Equity market share up by 90bps

24
Period: Q2-FY2020 vs Q2-FY2019
Retail equities business
Leading equity franchise in India

3-in-1 Platform Revenues (` million)

• Providing seamless experience

9,174
FY14 to FY19

8,154
CAGR 12%
• Mutual beneficial relationship with ICICI Bank

7,016
7,027

6,070
4,621
• Presence in 3,7501+ ICICI Bank branches

2,194

1,832
• 3-tier disaster recovery system
• Fully integrated risk system
• Real-time tracking of trigger prices FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20

Retail equity franchise down by 16% in Q2FY20 due to

• Over 95% broking transactions performed • Decline in delivery volumes, being an industry trend
online • Lower yields on account of adoption of Prime
Plan to offset by
• Better quality of acquisitions and scaling up channels
1. As at FY-19
• Increasing allied equity revenue streams (ESOP, MTF,
Prime fees) 25
Period: Q2-FY2020 vs Q2-FY2019
Institutional Equities business
Institutional equities – Growing scale

• Significant India coverage supplemented by Revenues (` million)

Asia Pacific and USA
FY14 to FY19
• Growing Direct market access business

1,174
CAGR 28%

1,069
• Research

740
537
527
• coverage of 249 Indian stocks1

339

326
279
• 37 member research team1
• Leading procurement in IPOs, QIPs, OFSs and
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
Block deals
Institutional equities business revenue up by 17% in Q2-
FY20
• Supported by strong traction in block deals

1. As at FY19 26
Period: Q2-FY2020 vs Q2-FY2019
Distribution
Strong online presence aided by pan India distribution
• Presence in over 75+ cities with ~187
branches Revenues (₹ million)

4,665

4,635
• 1,300+ relationship managers and product FY14 to FY19
CAGR 20%

3,497
specialists

2,669

2,541
• Wealth management solutions for HNIs/Family

1,867

1,279

1,062
offices, 300+ member team
• Over 700+ cities/towns with 8,000+ sub-
brokers, authorized persons, IFAs and IAs
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
• Significant presence in the Tier-II and Tier-III
Overall distribution revenue down by 17% in Q2-FY20,
cities
sequential growth of 8%
• Non MF distribution1 revenue up by ~7%
• MF revenue down 24% in line with anticipated TER
impact, almost flat sequentially

27
Period: Q2-FY2020 vs Q2-FY2019
Distribution
2nd Largest non bank Mutual Fund distributor

Mutual Funds revenue (` million) MF AUM (` billion)

FY14 to FY19 FY14 to FY19
CAGR 28% CAGR 36%

2,847

2,695

358
351
347
302
1,657
1,540

212
1,117

160
120
789

731

556

76
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20

28
Distribution
Enhanced focus on non Mutual Fund distribution1; up 7% in Q2-FY20
Investments
Non MF distribution revenue (` million)
• IPOs, OFS, public bond offerings
• 3rd party corporate fixed deposits FY14 to FY19
CAGR 12%
• National Pension System

1,940
1,839

1,818
1,424
Protection

1,128
1,078
• Life /General Insurance

474
444
Assets/Wealth creation
• Loan products referrals
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
• Portfolio management services
• Alternate investment funds

Launched Digital loans; ~ 0.9 million customers pre-approved for instant loan

1. Group of products which are being focused on to grow overall distribution revenue and include PMS, AIF, NPS, General insurance, Bonds, Deposits etc. and
exclude income such as marketing fees and paid educational programs
29
Period: Q2-FY2020 vs Q2-FY2019
Corporate Finance
Leading Investment Bank in India
• Ranked 1st in IPO1 league table by value
Revenues (` million)
• Rank 1st amongst domestic financial advisors
FY14 to FY19

1,440
by number of deals in merger market table CAGR 11%

1,198
• Strengths

991
834
638
• Sector expertise

593

322
283
• Corporate relationships
• Strong distribution franchise

• Expected to benefit from the robust deal
pipeline
1. IPO:IPO/FPO/InvIT/REIT
Source: Prime Database, Merger market , SEBI
Period: Q2-FY2020 vs Q2-FY2019
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
• Corporate finance revenue increased by 14% in
Q2-FY20, up 93% sequentially (QoQ)
• 11 Investment Banking deals including 4 advisory
deals in Q2-FY20
30
Corporate Finance: Q2-FY20 snapshot
IPO Consolidation product
• Ranked 1st in IPOs1 league table in H1-FY20
• Rights: Patel Engineering Ltd.
• SEBI IPO pipeline of over ` 57 bn as on Sept’19
• Takeover: Linde India Ltd., International Paper
• Left lead banker in 6 deals Appm Ltd.

Advisory Major deals

• Ranked 1st among domestic financial advisors by • IPOs/InvIT: Affle (India) Ltd, Spandana Sphoorty
number of deals in merger market league table Financial Ltd., Sterling & Wilson Solar Ltd.

• 4 M&A deals in Q2-FY2020 vs 3 deal in Q2-FY2019 • Block deal: ICICI Lombard, Wheels India, AU small
finance bank
• Advisory: ASG Eye Hospital Pvt. Ltd., Advent
International Corporation, Sanofi India ltd,
Dhunseri Petrochem & Tea ltd

1. IPOs: IPO/FPO/InvIT/REIT Source: Prime database

31
Period: Q2-FY2020 vs Q2-FY2019
Agenda

• ICICI Securities at a glance

• Strategy

• Business Performance

• Financial Results

• Industry Overview
Financials
Strong financial performance

Revenue (` million) Revenue diversification1 (%)

FY14 to FY19
CAGR 16%
Brokerage revenue Others

18,610

17,270
14,042
12,095

11,246

38%
39%

41%

45%

45%

46%

46%

48%
8,123

4,581

4,182

62%
61%

59%

55%

55%

54%

54%

52%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20

1. Brokerage is excluding interest & others 33

Asset light agency business with high returns
Consistent dividend payout & high ROE due to asset light model

PAT (` million) Dividend payout (` million)

FY14 to FY19 FY14 to FY19

3,028

3,028
CAGR 40% CAGR 50%

5,535

4,907

2,050
3,386

1,611

1,611
2,939

2,387

1,351
1,342
908

400
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19

Return on Equity remain robust at 48% for Q2 FY20 34

Consolidated P&L (` million)
Particulars Q2-FY19 H1-FY19 Q1-FY20 Q2-FY20 H1-FY20 Y-o-Y%
Revenue 4,581 8,940 4,021 4,182 8,203 (9)%
Operating Expenses1 340 592 245 244 489 (28)%

Employee benefits expenses 1,435 2,802 1,274 1,339 2,613 (7)%

Finance Cost2 108 239 178 179 357 66%

Other expenses2 621 1,204 564 579 1,143 (7)%
Total expenses 2,504 4,837 2,261 2,341 4,602 (7)%
Profit before tax 2,077 4,103 1,760 1,841 3,601 (11)%
Tax3 735 1,423 622 490 1,112 (33)%
Profit after tax 1,342 2,680 1,138 1,351 2,489 1%
Other Comprehensive Income (OCI) - (16) (35) (16) (52) -
Total Comprehensive Income (TCI) 1,342 2,664 1,103 1,335 2,437 (1)%
1. Includes MTM of ` 108 mn & 36 mn taken in Q1-FY2020 and Q2-FY2020 respectively on DHFL
2. Impact of Ind AS116 in Q1-FY2020 & Q2-FY2020 respectively: finance cost & depreciation increase by ` 156 mn , ` 141 mn;
lease expense reduce by ` 128 mn and ` 119 mn; having a net impact of ` 28 mn and 22 mn
3. Impact of change in income tax rate including impact on account of revaluation of deferred tax asset given in Q2-FY2020
35
Y-o-Y: Q2-FY2020 vs Q2-FY2019
Segment performance
(` million)
Particulars Q2-FY19 H1-FY19 Q1-FY20 Q2-FY20 H1-FY20 Y-o-Y%

Segment Revenue

Broking & commission 4,241 8,209 3,637 3,810 7,448 (10)%

Advisory services1 283 605 167 323 489 14%

Investment & trading 57 126 69 49 118 (14)%

Income from operations2 4,581 8,940 4,021 4,182 8,203 (9)%

Segment Profit before tax

Broking & commission 1,904 3704 1,647 1,672 3,318 (12)%

Advisory services 144 315 16 175 191 22%

Investment & trading 29 84 (51) (6) (56)

Total Result 2,077 4,103 1,760 1,841 3,601 (11)%

1. Advisory services includes Financial advisory services such as equity-debt issue management services, merger and
acquisition advice and other related activities
2. Amount of ` 207 mn and ` 148 mn pertaining to interest on income tax refund is not allocated to any segment and is
included in total revenues and results of FY2019 and Q1-FY2020 respectively 36
Y-o-Y: Q2-FY2020 vs Q2-FY2019
Balance sheet : Assets
(` million)
ASSETS At Sep 30, 2018 At Mar 31, 2019 At Sep 30, 2019
Financial assets (A) 25,538 43,697 31,030
Cash/Bank and cash equivalents 16,823 31,4861 15,322
Derivative financial instruments and Securities for trade 700 2,563 5,642
Receivables 2,013 4,770 2,457
Loans 5,022 4,033 6,797
Investments 37 28 27
Other financial assets 943 817 785
Non-financial assets (B) 2,694 2,949 4,986
Deferred tax assets (net) 647 737 5712
Right-of-use assets3 - - 1,662
Fixed assets, CWIP & Intangible assets 454 476 517
Current tax assets & other non financial assets 1,593 1,736 2,236
Assets (A+B) 28,232 46,646 36,016

1. Settlement obligation pertaining to an offer for sale of ` 17,362 mn was pending for payment as on March 31, 2019
2. Re-measured deferred tax assets at new income tax rate
3. Lease assets capitalised as per Ind AS 116, which came into effect on April 1, 2019, are being reported as Right of use assets
37
Balance sheet : Equity and Liabilities
(` million)
EQUITY AND LIABILITIES At Sep 30, 2018 At March 31, 2019 At Sep 30, 2019
Financial liabilities (A) 13,285 30,182 19,892
Derivative financial instruments 3 17 -
1
Payables 6,091 23,362 5,650
Debt securities 5,204 4,473 10,143
Lease liabilities2 - - 1,654
Deposits & Other financial liabilities 1,987 2,330 2,445
Non-financial liabilities (B) 5,288 5,991 5,366
Equity (C) 9,659 10,473 10,758
Equity share capital 1,611 1,611 1,611
Other equity 8,048 8,862 9,147
Equity and Liabilities (A+B+C) 28,232 46,646 36,016

1. Settlement obligation pertaining to an offer for sale of ` 17,362 mn was pending for payment as at March 31, 2019
2. Lease liabilities are being capitalised in financial liabilities as per Ind AS116 applicable from April 1, 2019
38
Agenda

• ICICI Securities at a glance

• Strategy

• Business Performance

• Financial Results

• Industry Overview
Enablers: Rapidly transforming Digital India
High device penetration Affordable access spurring adoption
• 1.2bn mobile phones in India • Mobile data consumption at 8.3gb per month per user
• Smartphone penetration at 26.2% in 2018 • China at 5.5gb
• Expected to be 66% by FY221 • Digital payment transactions at 15bn up from 5bn FY14
• 0.6bn internet subscribers in India • Mobile trading2 at 10% in 2018 from 1% in 2014
• Second only to china • Data costs are down by more than 95% since 2013
• Download speed increased 4x between 2014 and 2017

Digital Data infrastructure Policy led systematic push

• Increasing volume of quality data available across • 1.2bn Aadhaar enrollment
various agencies • 740m+ direct benefit transfer transactions
• Developments in • 10mn+ businesses on online GST network
• Data Sciences & Analytics
• Machine learning/ Artificial Intelligence technologies
• Artificial Intelligence

Source: McKinsey, 1. CRISIL, 2. SEBI (Mobile as a mode of trading in cash market at NSE)
40
Enablers: Financialisation and equitisation of savings
Rising financial savings Growing incremental share of financial investments in
shares & debentures1
Financial Savings In ` trillion
8.0%
Financial Savings as a % of Household Savings
44.9% 38.4%
36.5% 36.1% 37.0%
31.1% 32.9%
3.0% 2.6%
11.1 9.7 11.3 1.8%
7.3 8.3 8.8 1.6% 1.6% 1.6%
6.4

FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18

High growth across financial asset classes2

FY-15 FY-16 FY-17 FY-18 FY-19
491
348
289
200 213 259 179
165 149 131 149 146 162
95 116

Equity + Derivative MF AUM Insurance Premium

ADTO (FY)
Source: RBI, IRDA, AMFI, NSE, BSE, EIU; ADTO: Average daily turnover;
1. Include investment in shares and debentures of credit / non-credit societies and investment in mutual funds
(other than Specified Undertaking of the UTI) (Source: RBI, MOSPI) 41
2. Indexed to 100 in FY 14
Industry trends: Slow down in primary & secondary market
Weak FII flow Contribution of better yielding delivery volume reducing

3.4 FII Equity Flow in USD billion Delivery volume contribution to Overall Equity volume
1.5
(4.1) 30%

(0.0) 27%
26%
25%
FY18 FY19 H1-FY2019 H1-FY2020
FY18 FY19 H1-FY2019 H1-FY2020

Subdued capital market (IPO) activity Slow down in MF net equity flow

IPO mobilization In ` billion In ` billion

888 2,608

1,148
227 155 718 592
107

FY18 FY19 H1-FY2019 H1-FY2020 FY18 FY19 H1-FY2019 H1-FY2020

Source: Bloomberg, SEBI, NSE, BSE, Prime database, AMFI; IPO: IPO/FPO/InvIT/REIT, H1: April to September 42
Industry trends: Equity market volatile with downward bias
Nifty Midcap Index Nifty Small cap Index

20,290 8,390
20,500 8,500
19,500 18,339 7,500 6,783
18,500
17,500 16,026 6,500 5,594
16,500
5,500
15,500
14,500 4,500

Down by 21% and 13% from April-18 and Down by 33% and 18% from April-18 and
April-19 peak respectively April-19 peak respectively

Source: NSE 43
Industry trends: Equity secondary market
Rise in demat accounts (In million) Growing retail participation
39 Equity Derivative
36
32 54% 58% 58% 56%
28 52% 51%
23 25

44% 46% 47% 45%

37%
30%

FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20

Growing share of trading volume (` billion) Secondary market volume growth led by derivative volume#

213 202 244 338 352 360 1,368 1,525 2,409 4,143 6,251 9,676
Equity Derivative In ` billion Equity Derivative

68% 68% 66% 70% 74% 76% 88% 89% 92% 93% 96% 97%

FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20
Equity market ADTO Total market ADTO ex proprietary
Source: NSE, BSE, SEBI, NSDL, CDSL; ADTO – Average daily turnover
#Excluding proprietary volume 44
Industry trends: Savings - Increasing managed equity
Mutual Fund (Exit) AUM (` trillion) Growing share of beyond top 35 cities in MF AUM
Top 35 Others
23.8 24.5
21.4
17.5

10.8 12.3
92% 92% 91% 91% 82% 80%

FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19

More systematic retail participation through SIP Mutual Fund folio

927 82 86
SIP flow (` billion) Folio Count (million) 71
672
55
48
439 42
248

FY-17 FY-18 FY-19 Q2-FY20 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20

45
Source: AMFI
Industry trends: Protection

Life Insurance premium1 (` trillion) Health Insurance premium1 (` trillion)

4.6 0.37
4.2
3.7 0.30
3.1 3.3 0.24
0.20
0.17

FY-14 FY-15 FY-16 FY-17 FY-18 FY-14 FY-15 FY-16 FY-17 FY-18

Source: IRDA 46
Industry trends: Wealth and Asset creation

PMS AUM1 (` trillion) Gross Bank Credit2 (` trillion)

1.7 77.3
1.6

1.1 1.1 71.5

0.9
0.7 0.8 0.8
0.6 66.5
0.5

FY-15 FY-16 FY-17 FY-18 FY-19

FY-16 FY-17 FY-18
Discretionary Non-Discretionary

1. Source: SEBI 2. Source: RBI 47

Safe harbor
Except for the historical information contained herein, statements in this release which contain words or
phrases such as 'will', ‘would’, ‘indicating’, ‘expected to’, etc., and similar expressions or variations of such
expressions may constitute 'forward-looking statements'. These forward-looking statements involve a
number of risks, uncertainties and other factors that could cause actual results, opportunities and growth
potential to differ materially from those suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to, the actual growth in demand for broking and other financial
products and services in the countries that we operate or where a material number of our customers reside,
our ability to successfully implement our strategy, including our use of the Internet and other technology, our
growth and expansion in domestic and overseas markets, technological changes, our ability to market new
products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or
become a party to, the future impact of new accounting standards, our ability to implement our dividend
policy, the impact of changes in broking regulations and other regulatory changes in India and other
jurisdictions as well as other risk detailed in the reports filed by ICICI Bank Limited, our holding company with
United States Securities and Exchange Commission . ICICI Bank and ICICI Securities Limited undertake no
obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

This release does not constitute an offer of securities.

48
Thank you