Edelweiss – Investor PresentationMarch 2008

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Disclaimer

This presentation and the discussion that follows may contain certain words or phrases that are forward - looking statements, based on current expectations of the management of Edelweiss Capital Ltd. or any of its subsidiaries and associate companies (“Edelweiss”). Actual results may vary significantly from the forward-looking statements contained in this presentations due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and outside India, volatility in interest rates and in the securities market, 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 not undertake any obligation to update these statements. Edelweiss has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness can not be guaranteed.

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

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Industry Overview

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Indian Financial Services Sector: Overview

Public Sector BanksPublic Sector Banks

Private Sector BanksPrivate Sector Banks

Non Banking Financial Institutions/Others

Non Banking Financial Institutions/Others

Asset Management(Traditional and Alternative)

Asset Management(Traditional and Alternative)

General Insurance-Public SectorGeneral Insurance-Public Sector

Banking & Other Lending Companies

Capital Market Players Insurance Companies

Revenue (FY 08 E) USD 70 Bn USD 50 Bn USD 10 Bn

Wealth ManagementWealth Management

Retail Broking and DistributionRetail Broking and Distribution

Institutional Equities(Equities andDerivatives)

Institutional Equities(Equities andDerivatives)

Investment Banking(Advisory, ECM)Investment Banking(Advisory, ECM)

Source: Internal Estimates, figures in brackets indicate estimated revenue size in USD Bn* Based on estimates of embedded value of private sector insurance businesses of listed companies

General Insurance-Private SectorGeneral Insurance-Private Sector

Life Insurance CorporationLife Insurance Corporation

Life Insurance-PrivateLife Insurance-Private Others

(Treasury, Financing, Trading etc)

Others(Treasury, Financing, Trading etc)

(10)

(15)

(45)

(5)

(3)

(27)

(15)

(0.8)

(1.2)

(3.6)

(0.3)

(2.0)

(2.1)

Market Capitalisation USD 115 Bn USD 16 Bn* USD 10 Bn

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Convergence across categories:

– Mutual Funds and Banks

– Insurance and Asset Management

– Broking and Financing

Growth in Capital Markets have outpaced others:

Key Trends

Median Revenue CAGR (2004 -08)

Private Banks 30%

Public Banks 8%

NBFCs 42%

Insurance 31%

Capital Markets 80%

Source: Internal Estimates5

Edelweiss Overview

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Edelweiss: Overview

Diversified financial services company

Founded in 1996, currently has 1,500 employees

Headquartered in Mumbai with 43 offices across 19 cities

Overview Revenue Segmentation (9 months ended Dec 07)

• Investment Banking

• Institutional Equities

• Private Client Broking

• Asset Management

• Wealth Management

• Insurance Broking

• Treasury

• Wholesale Financing

Summary Financials

(Rs. mn, unless otherwise specified) FY ‘05 FY ‘06 FY ‘07

9 months ended

Dec 07

Total Revenue 770 1,580 3,713 6,831% Growth 151.8% 105.1% 135.0%

Net Income (after min. int) 225 405 1,090 1,907

% Margin 29.2% 25.7% 29.4% 27.9%Return on Net Worth 55.6% 38.2% 28.7% 30.0%

Edelweiss: Overview

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Well Diversified Integrated Financial Services Model

Agency-based

Capital-based

Recent Initiatives / High Growth Areas

44%

47%

Institutional Equities

Investment Banking

Wholesale Financing

Treasury

Wealth Management

Insurance Broking

Private Client BrokingTreasury

Institutional Equities

Investment BankingInvestment Banking

Revenue: INR 93mn

Revenue: INR 6,831mn (9 mo)

FY 2000 FY 2003 Dec 2007

Strategy of selectively building new businesses adjacent to our current offerings

Asset Management

Balanced agency and capital-based businesses. Balanced recent growth initiatives and established businesses

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Track Record of Capitalizing on Capital Market Trends

Late 1990s

2001

2004

2005

2006

2007

Private Equity

Equity Derivatives

Alternative Asset Management

Indian Real Estate

Qualified Institutional Placement (“QIP”)

Asset Management

Key Trend

Fund-Based Lending

Wealth Management

Wholesale Finance Business

Investment Advisory and Planning Services

Managed First QIP

Pioneer in PE Advisory

India Diversified Fund Retail Asset Management

Real Estate Investment Banking

Real Estate Fund Blue River Capital

Pioneered Arbitrage andMulti-Book Trading Acquired Rooshnil

Ongoing identification of key trends – creating service offerings and businesses around them

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Strong Research & Analytics Platform

Fundamental Research Alternative / Quantitative Research

Early identification of emerging market themes– 2003: India export-oriented manufacturing

industry – 2005: Lifestyle Consumption products and

services– 2006: Indian infrastructure industry

‘Top-down’ macro research to spot themes, combined with ‘Bottom-up’ research to identify stock ideas

Conventional and proprietary analytical techniques/models to identify short and medium-term opportunitiesProduct suite includes:

– Relative Strength Comparison– Pair Strategy– Edelweiss Market Scan– Master Moves– Sector Fact Sheets

TREASURY

WEALTH MANAGEMENT

INSTITUTIONAL EQUITIES

PRIVATE CLIENT BROKERAGE

INVESTMENT BANKING

Research & Analytics

• 60 analysts• Cover 215 companies • Fundamental Research• Alternative/Quantitative

Research

Backbone of our businesses - cutting-edge research and analytical rigour

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Experienced Management Team

Senior Management 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 Most members of the management team have been with the company for over five years

Employee Ownership Management and employees together hold approximately 55% of the Company (20% owned by non-promoter employees)

40 Member Senior Leadership Team (SLG)

45 Member Leadership Team (LG)

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Active Board of Directors with Complementary Skills

Board of Directors

Name Key Affiliation(s) Key Skill-SetBoard

Member Since

Rashesh Shah Management Representative

Chairman and CEO Edelweiss

18 years experience in public and private markets in India

1996

Venkatchalam RamaswamyManagement Representative

Executive DirectorEdelweiss

Diverse experience in financial sector 1996

Sanjay SanthanamNon-Executive Nominee

MD & Head of Risk ManagementGalleon Group

Expertise in risk management 2006

Kunnasagaran ChinniahNon-Executive Nominee

Executive Vice PresidentGIC, Singapore

Highly experienced in global private equity

2007

Ramanan RaghavendranIndependent

Managing PartnerKubera Partners

Diverse experience in global financial services

2000

Sunil WadhwaniIndependent

Co-Founder & CEOiGATE Corporation

Strong background in entrepreneurship across geographies

2000

P.N. VenkatachalamIndependent

Former MD State Bank of India Considerable experience in Indian credit markets

2007

Narendra JhaveriIndependent

Former Joint MD ICICIFormer Chairman ICICI Securities

Extensive experience in Indian capital markets

2007

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Business Overview

Investment Banking

Institutional Equities

Asset Management

Wholesale Financing

Private Client Broking

Wealth Management

Insurance Broking

Innovative financial solutions to HNWI & corporate clients. Offerings include IPO funding, Loan against shares, ESOP Funding

Wide range of expertise across verticals like Equity Capital Markets, Mergers & Acquisitions, Structured Finance, Private Equity, Real Estate & Infrastructure Advisory

Institutional Brokerages in cash & derivatives segment with a global client base. Research coverage across Fundamental, alternative and thematic themes

Advisory services for Institutional & HNWI’s across Alternate asset classes like Real Estate, Private Equity and multi-strategy fund and Portfolio Management services

Brokerage advising to HNWI & corporate clients on Equities, Derivatives & Commodities Investments spread across 43 branches in 19 cities

Customized advice to HNWI & corporate clients on asset allocation across different asset classes from Structured Products, PMS, Mutual Funds, Insurance, Derivative strategies, Private Equity, IPO’s, Real Estate Fund & Art Fund

Specialists in Auto & Fire Insurance, Employees Benefit Schemes & Liabilities Insurance

Diversified across asset classes, products and client segments

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Growth Strategy

Growth Levers

Growth through adjacent markets across products, asset

classes and client segments

Growth through adjacent markets across products, asset

classes and client segments

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Financial Snapshot

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Solid Track Record of Profitable Growth

Revenue Growth Revenue Breakdown

Return on EquityNet Income Growth

Net Income (1)

(INR mn)

25.0% 29.2% 25.7% 29.4% 27.9%Net Income Margin

CAGR: 130%

1. Net income after minority interest

CAGR: 142%

(Annualised)

(INR mn)

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9 months FY08 Financial Overview (consolidated)

More than 50% of the costs are variable in nature: linked to business volumesMore than 50% of the costs are variable in nature: linked to business volumes

INR Million FY08 FY07 Growth FY08 FY07 GrowthQ3 Q3 YOY 9 Mths 9 Mths YOY

Fee and Commission Income 1,252 479 2,993 1,411Trading and Arbitrage Income 946 374 2,150 684Investment and Dividend Income 366 72 599 186Interest Income 672 55 1,085 73

Total Revenues 3,235 981 230% 6,827 2,354 190%

Employee Cost 480 219 1,234 486Operating and other expenses 628 216 1,375 577Financial expenses 673 52 1,182 113Depreciation 17 9 40 28

Total Expenses 1,798 496 262% 3,831 1,205 218%

Profit before tax 1,437 484 197% 2,996 1,149 161%

Tax expenses (including Deferred and Fringe Benefit Tax) 473 176 1,014 427

Profit after tax 964 309 212% 1,982 723 174%

Share of minority interests in profits 40 0 81 3

Profit after tax and minority interest 924 309 199% 1,902 720 164%

Earnings Per Share (EPS) in Rupees - Basic (Not annualised) 13.4 6.1 31.2 14.9 - Diluted (Not annualised) 12.9 5.3 30.0 13.3

9 months FY08 Financial Overview (consolidated)

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Strong Liquid Balance Sheet

Indicative Balance Sheet

Sources of Funds

Equity# 19.3

Other Long Term Capital 2.7

Borrowings 18.0

Total 40.0

Application of Funds

Treasury Assets 15.0

Wholesale Financing Book 8.0

Working Capital 10.0

Liquidity Cushion 4.0

Other Assets 3.0

Total 40.0

INR Billion

# including Minority InterestBased on representative numbers 18

Revenue Mix – Well diversified revenue streams

Investment and Dividend

9%Interest and Other

16%

Fees and Commission

44%

Trading and

Arbitrage31%

Investment and Dividend

7%

Interest and Other

4%

Fees and Commission

58%

Trading and

Arbitrage31%

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Client Revenue Mix – shift towards greater balance

For Agency related businesses

Individual Clients20%

Individual Clients11%

Institutional/Corporate

Clients80%

Institutional/Corporate

Clients89%

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Key Challenges

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People

• High and well distributed employee ownership

• Focus on training and “building our own”

• Unique partnership culture

Risk Management

• Board level oversight – Audit and Risk Committees

• Strong focus on Risk Measurement and Monitoring

Key Challenges & our approach (1/2)

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Business Volatility

• Diversified Business Model

• Flexible resources: capital and people

• Flexible cost base

Regulatory & Compliance

• Strong Corporate Governance

• Compliance Culture

Competition

• Unique Business Model

• Execution culture

• Focus on innovation

Key Challenges & our approach (2/2)

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Thank You

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