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SREI EQUIPMENT FINANCE LIMITED

Corporate Presentation – May 2016

SREI EQUIPMENT FINANCE LIMITED

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Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION TO BUY OR SELL NOTES OR OTHER SECURITIES. IT IS PREPARED EXCLUSIVELY FOR THE PARTIES BEING INVITED FOR THE PURPOSES OF DISCUSSION AND IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND PROVIDED FOR INFORMATION ONLY. THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND IS SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, RETRANSMITTED, FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PA RT, FOR ANY PURPOSE. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESENTATION OR BY READING THE PRESENTATION SLIDES YOU AGREE AS FOLLOWS:

This presentation has been prepared by SREI Equipment Finance Limited (“SEFL” or the “Company”) is furnished on a confidential basis only for the use of the intended recipient and only for discussion purposes, may be amended and supplemented and may not be relied upon for the purposes of entering into any transaction. This presentation has not been independently verified by Standard Chartered Bank (“SCB”). No representations or warranties, express or implied, are made by SCB or any of its respective members, directors, officers, employees, agents, affiliates, advisers or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions presented or contained in this presentation. None of

SCB or any of their respective members, directors, officers, employees, agents, affiliates, advisers or representatives accept any liability whatsoever in negligence or otherwise for any loss howsoever arising from any information or opinions presented or contained in this presentation or otherwise arising in connection with this presentation.

The information contained herein has been obtained from sources believed to be reliable but the Company does not represent or warrant that it is accurate and complete. The views reflected herein are those of the Company and are subject to change without notice. All projections, valuations and statistical analyses are provided to assist the recipient in the evaluation of the matters described herein. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and to the extent that they are based on historical information, they should not be relied upon as an accurate prediction of future performance. This presentation may include forward-looking statements that reflect the Company's intentions, beliefs or current

expectations. Forward-looking statements involve all matters that are not historical by using the words "may", "will", "would", "should", "expect", "intend", "estimate", "anticipate", "believe" and similar expressions or their negatives. Such statements are made on the basis of assumptions and expectations that the Company currently believes are reasonable, but could prove to be wrong.

This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any securities and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company's securities in any jurisdiction. Investors should not subscribe for or purchase any securities referred to in this presentation except on the basis of the information in the final offer document issued in respect of such securities. The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this

presentation, unless otherwise specified, is current only as of the date of this presentation, and the Company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the

content of this presentation, without obligation to notify any person of such revision or changes.

Neither this presentation nor any copy hereof may be sent or taken or distributed in the United States, (or India, Australia, Canada or Japan or any other jurisdiction where doing so may result in a violation of applicable law) or to any “U.S. Person” as that term is defined in the Securities Act. No offering of securities by SEFL are or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the U.S. or any other jurisdiction, and any such securities may not be offered, sold, resold, delivered or distributed, directly or indirectly, in the United States except pursuant to an exemption from, or transaction not subject to, the registration requirements of the Securities Act.

This presentation has not been and will not be registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this presentation is only addressed to and directed at persons in Singapore who are (i) institutional investors under Section 274 of the Securities and Futures Act (Chapter 289 of Singapore) ("SFA"), or (ii) relevant persons pursuant to Section 275(1), or any persons pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275, of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

By attending the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that (i) you and any customers you represent are an institutional investor or a relevant person under the SFA (as defined above); (ii) you have read and agree to comply with the contents of this notice; and (iii) you will treat and safeguard as strictly private and confidential all such information and take all reasonable steps to preserve such confidentiality. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. Previous Year figure has been regrouped / rearranged wherever considered necessary to correspond with the current year classification/disclosure

Certain numbers in this presentation have been rounded off for ease of representation.

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Company Overview & History

Financial Highlight

Key Strengths

Table of Contents

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Current Shareholding Pattern

All INR value has been converted in USD @ 66.25 * NPA is calculated as a percentage of on books earning assets

Company Highlights

SEFL– Key Financials & Ratios as at March 2016

Total income (USD mn) 395

Profit After Tax (USD mn) 17

Assets Under Management (USD mn) 2,807

Shareholders Fund (USD mn) 357

Net NPA * 1.99%

Total Capital Adequacy Ratio 19.62%

Note: In order to take the advantage of the emerging opportunities in the infrastructure sector in India, BPLG desires to become a shareholder in SIFL. BPLG, therefore, proposes to acquire 5% of equity shares of Srei Infrastructure Finance Limited (SIFL) in lieu thereof, transfer/sell its entire shareholding of equity shares in Srei Equipment Finance Ltd. (SEFL) representing 50% of the total paid-up equity share capital to SIFL. The transaction is awaiting regulatory approval.

Srei Equipment Finance Ltd (SEFL) is among India’s leading construction & mining equipment financier with over ~30 % market share, with a customer base of over 60,000 built and nurtured over last 25 years

As at March 2016, its total Assets Under Management

stands at Rs. 185,980 million (US$ 2.8 billion) SEFL has entered in new sectors like information

technology, healthcare, rural, logistics etc. to tap the attractive growth opportunity in these untapped sectors

SEFL has a pan India distribution network of 88 branches

with full time employee base of around 1,650 people as on 31st March 2016

It has established partnerships with almost all leading domestic & international equipment OEMs

Proposed Shareholding Pattern

50% 50%

SREI Equipment Finance Ltd

5%

Company Overview

SREI Equipment Finance Ltd

100%

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1989: Srei started operations &

identified infrastructure sector

as its core area of business

Tied up with L&T to support

financing of their products

1992: Initial Public Offering

1995: Raised funds from DEG

Entered infrastructure

financing

1996: Further public issue of ~

USD 19 mn (INR 1,000 mn)

1997: Equity Investments by

International Development

Institutions – IFC, DEG and

FMO

• Incorporated international

risk management practices

• Raised funds from – US

Exim bank, Finfund etc.

2002: Conceived India’s first

organized equipment rental company

2004: Developed first ever “On tap”

securitization product with ICICI

bank

2005: Raised funds through USD 35

mn issue

• First Indian NBFC to be listed on

the London Stock Exchange

2006:-07 Incorporated as SREI

Infrastructure Development Limited

(SIDL) in June 2006 as a 100%

subsidiary of SIFL

2007-08: SIDL de-merged from SIFL

to form SREI Equipment Finance

Pvt. Ltd

2008-09: SEFL enters into a strategic

alliance with BNP Paribas Lease Group

2009-10: Ventured into the business of

financing Technology Solution, Medical &

Health care equipment’s

2010-11: Crossed AUM of Rs. 11967 Crs.

2011-12: Rights issue of USD 18.62mn (INR

998.20mn)

2012-13: Entered Rural equipment financing

space

Exclusive alliance with Atlas Copco India

Equity infusion of USD 37.25 mn by the JV

Partners

2013-14:Converted into a limited company.

Virtual Joint Venture with CNH Industrial.

2014-15: Entered into an agreement with

Hitachi Corporation to form a business

alliance.

1989 -1995 1996 - 2000 2006 - 2008 2009 - 2011 2011 - 2015 2001 - 2005

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3

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SREI Infrastructure Finance Limited SEFL (Joint Venture)

Key Milestones

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Business Strategy

Risk Adjusted

Growth

•Shift from Strategic to Retail to reduce risk per Customer

•Strengthen new business verticals

• Tap the cash flows and acquire security beyond asset

Alliances &

Partnerships

• Invest in Partnership with OEMs & Dealers to create compelling customer solutions

•Deepen relationship across infrastructure value chain

Asset

Management

•Develop used equipment financing

•Remote asset management through GPS installed in equipment

• Tap Digital Marketing to manage asset better

Digitization

• In-house technology team to focus on continuous process optimization

• End to end process automation leading to seamless transaction processing

Diversified

Treasury

•Continue the strong association with financial institutions to have long term strategic funding

•Broad base funding profile by tapping retail funding, bond market, etc.

Talent

Management

• Promote intrapreneurship

•Stimulate culture of innovation amongst employees

• Focused leadership development programs to create next generation business leaders

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Table of Contents

Company Overview & History

Financial Highlight

Key Strengths

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Key Strengths

SEFL -Key Strengths

1. Holistic “Asset Solution Provider” with Strong market position

2. Strong promoter relationship and brand

4. Favourable Industry Dynamics

5. Diversified funding sources

3. Widespread distribution network & Innovative Marketing Strategy

6. Strong Financial Performance

7. Effective risk management framework

8. Experienced Management

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1. Holistic “Asset Solution Provider” with Strong Market Position SEFL has the unique ability to provide holistic ‘Asset Solution’ by enabling clients across the life-cycle of an asset, namely procurement, deployment, maintenance

and disposal.

SEFL key strength essentially revolves around a “relationship-cum-partnership” model with its manufacturers and its customers and has entered into tie-ups and partnership programs with large OEMs. These innovative and personalised partnership programs are the key to their strong market position

As at 31 March 2016

Business Segments

Total portfolio of USD 42 mn

Customer Segment: Variation of large hospitals to standalone diagnostic centres in Tier 1 and Tier 2 cities

Products & Services - Medical equipment , Medical devices, Hospital infrastructure

Selected Manufacturers:

Healthcare

Infrastructure

Rural Infrastructure

Total portfolio of USD 56 mn

Customer Segment: Contract farmers, Tractor owners

Products & Services - Finance of – tractors, combine harvesters, chilling plant, cold storage & warehouses, etc.

Company plans to focus on corporate farming and develop a model to optimize fixed cost & business risk

Selected Manufacturers:

Construction & Mining

Equipment (CME)

Total portfolio of USD 2,434 mn Customer Segment: Retail, Medium and large customers, project owners, large fleet owners, first time owners & buyers Market leader in the CME segment with partnerships with leading global domestic and international equipment

manufacturers Selected Manufacturer :

Total portfolio of USD 103 mn

Aims to be the leader in used construction equipment market through its Holistic Asset solution approach

Customer Segment: Used equipment from various sectors including construction, mining equipment and technology solutions

Products & Services - Refinancing of standard construction equipments such as backhoe loader, excavator, cranes etc.

Selected Manufacturers:

Pre-Owned

Equipment

Total portfolio of USD 107 mn

Customer Segment: Institutional and Corporate Segment customers being rated as AA and AAA by rating agencies

Products & Services - IT infra, Telecom, Office automation etc. Provides operating lease, finance lease, receivables discounting,

loans and deferred payment agreements

Selected Manufacturers:

IT

Infrastructure

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2. Strong Promoter Relationship with Brand - Srei Group

SREI Group is the leading infrastructure finance company in India with total Asset Under Management of INR 36,702 crore (US$5.54 billion) as at 31st Mar-2016

SREI diversified into larger infrastructure financing space in 1995 and was awarded “Public Finance Institution” (“PFI”) and Infrastructure Finance Company (“IFC”) status by the RBI in FY 2011-12.

SREI formed strategic alliances with leading global companies such as BNP Paribas and TATA Teleservices in the construction equipment finance and telecom towers businesses, respectively. Stakeholders include several international development finance institutions such as KfW and DEG Germany (owned by the Government of Germany), FMO (owned by the Government of Netherlands), Nordic Investment Bank, PROPARCO, OeEB (Development Bank of Austria)

SEFL also benefits from the support that it receives from its promoter in the form of equity infusions to assist with its expansion strategy

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3. Widespread Distribution Network and Innovative Marketing Strategy Portfolio Split as at 31 March Distribution Model

Entrepreneurial driven business approach

Originates business Facilitates in collection Maintains customer relationships

Srei Entrepreneur

Partners

Relationship based business approach Responsible for profitability of the portfolio Involved through the value chain of the customer Responsible for business generation, monitoring and

recovery

Relationship Managers

Innovative Marketing Strategies

Cu

stom

ers

Khul ja Sim Sim - Unique event which offers subsidised interest rates, free spare parts, free first year insurance to customers.

SREI Partnership Week -Business at Doorstep, new business, dispute resolution, relationship building

Purchase of equipment by using pre approved closed loop card Pre-documented & Speed & Convenience

Paison Ki Nilami - 17 Events in 5 yrs. Unique Dutch auction of interest rates

Well spread branch network of 88 branches across India that helps to tap growing demand & develop customer insights

Focused distribution network to cater to different segments of infrastructure and other emerging sector’s equipment requirement

Branches and regional offices are connected centrally to enable the transmission of real time information with respect to loan disbursements, financing arrangements, loan administration and monitoring and collection and recovery.

Helps in maintaining long term relationships and garnering greater share of customers’ spend

Zone No of Branches Portfolio USD mln

East 23 663

West 18 675

North 18 551

South 29 853

Total 88 2,742

20%

31% 24%

25%

North South East West

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4. Favourable Industry Dynamics

With unit sales of ~48,400 in FY-15, the Indian earthmoving and construction equipment (“ECE” or “CE”) industry was valued approximately at USD 2.8 bn

and is expected to grow to around 82,750 units by 2020. Between 2005 – 2015, Indian ECE industry grew at a CAGR of 9% and its

share as a percentage of GDP has increased from ~5% in 2002 to ~8% by 2015

Overview

The industry is fragmented with top 6 manufacturers contributing ~ 70 -75% of the total sales

Backhoe Loaders and Excavators constitute 65 % of the total sales

Industry Structure

Construction & Mining Equipment Way Forward

Improving Financing Environment E-auctioning of de-allocated

coal blocks

Premium Rescheduling for road and

highway projects & awarding of

Projects on ECP Basis

Fast tracking of coal evacuation

corridors

Development of 100 smart cities Expediting Dedicated Freight

Corridors (DFCs)

Delinking forest clearance from

environment clearance

Allowing 100% FDI in certain

rail infrastructure

Allowing 100% FDI in certain rail

infrastructure projects

Boost for Low cost Affordable

Housing

Easing of exit norms

Demand Driver

Source: Overview of Indian Construction Equipment Industry by Feedback Consultancy

52,900 57,400 63,850

71,850 82,750

2015-16 2016-17 2017-18 2018-19 2019-20

USD 3.1 Bn

USD 5 Bn Vol in units Realistic

52,900

70,600

2015-16 2019-20

USD 3.1 Bn

USD 4.3 Bn Pessimistic

52,900

98,900

2015-16 2019-20

USD 3.1 Bn

USD 6 Bn Optimistic

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5. Diversified Funding Sources

Borrowing Portfolio Breakdown (including Securitization)

US$ 2.23 billion US$ 2.28 billion

Being a “Asset Finance Company” as per RBI, SEFL has greater resource raising flexibility across domestic and international capital markets.

Our Banking partner comprises of 53 Banks and Financial Institutions – both Domestic and International

The group has been supported by international financial institutions and banks like FMO, UPS Capital, DEG, Austrian Development Bank, SCB, HSBC etc. and has successfully raised financing through syndicated loans that have witnessed strong participation from banks

across jurisdictions

The Issuer has consciously expanded its source of funds in order to optimize its funding costs, protect interest margins and maintain a diversified funding portfolio to achieve funding stability and liquidity.

Proactive ALM management policy

12%

16%

48%

2%

2%

20%

CP, Bonds & Debentures Secured Term Loan LC/ Buyers' Credit/ WCDL

Working Capital Facility Others Securitisation

2016

16%

21%

30%

18%

2%

13%

CP, Bonds & Debentures Secured Term Loan LC/ Buyers' Credit/ WCDL

Working Capital Facility Others Securitisation

2015

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Asset Quality

Capital Adequacy Ratio

6. Strong Financial Performance

Interest Earning Asset - USD mn

2.96%

4.97% 4.98%

2.95%

2.25%

4.07% 3.83%

1.99%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

FY-13 FY-14 FY-15 FY-16

Gross NPA Net NPA

Shareholder Funds - USD mn

282

316 339

357

0

50

100

150

200

250

300

350

400

FY 2013 FY 2014 FY 2015 FY 2016

Net Worth

2,813

2,667

2,715

2,772

2,550

2,600

2,650

2,700

2,750

2,800

2,850

FY-13 FY-14 FY-15 FY-16

Interest Earning Asset

16.19% 17.13%

17.05%

19.62%

12%

15%

18%

21%

FY-13 FY-14 FY-15 FY-16

CAR

Note: NPA is calculated as a percentage of on books earning assets

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7. Effective Risk Management Framework

• • Evaluates the financial & market Periodic review of defined credit policies in order to adapt them to market related issues Accountability encouraged in sales process as responsibility of managing asset quality lies with the originator

of loan

Proactively analysing and building

position of client as well as the the project, IRR & cash flows and

original sponsor • • Give due consideration to

in company’s liability structure terms of maturity and liquidity

• • SEFL has developed an understanding of the value, life controls

process in the credit appraisal Robust Credit

Appraisals Strong Risk

Management utilization of assets funded by it

• Accounts monitored on a regular basis and classified into early stage, mid-stage and late stage collectors.

Effective Collection

Mechanism

Efficient Treasury

Management • Diversified borrowing sources

foreign across domestic & • Lending backed by PDC or ECS in financial institutions

order to create stronger legal • Top management review of fund recourse

mobilization and ALM to reduce funding cost and manage liquidity • Effective use of technology in the

process of collection through hand held devices In case of delinquencies, SEFL has the expertise to repossess and redeploy/remarket the equipment

• Financial arrangement allows for future capital requirements to be funded equally by both the JV partners

•

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8. Experienced Management

Master of Science and Master in Economics, Statistics and Finance. Having more than 24 ears of varied experience in the field of Finance, Development, Strategy, Asset Management and leasing solutions.

She also holds Board membership of various BNP Paribas Group companies. She was nominated among the Top 5 most influential women in European Finance in 2011.

Pascale Charlotte Dufourcq Dennery

Chairman

Mr. Hemant Kanoria has over 34 years of experience in industry, trade and financial services

He has held the position of Chairman of National Committee on Infrastructure of Federation of Indian Chambers of

Commerce and Industry and is also a Council Member of Indo-German Chamber of Commerce.

Mr. Hemant Kanoria Vice Chairman & MD

Mr. Sunil Kanoria is a Chartered Accountant with more than 26 years of experience in the financial service industry.

Presently the Director of The Associated Chambers of Commerce & Industry of India, a Member of the Central Direct

Taxes Advisory Committee and a governing body member of the Construction Industry Development Council.

Mr. Sunil Kanoria Joint MD

He is a Polytechnique graduate with vast experience in the financial services industry. He is presently the CEO of BNP Paribas Lease A Civil Engineer with vast experience in the financial services industry. Regional Supervisor - Supervisor of India within the International Division of BNP Paribas Leasing Solutions, (Paris, France).

Having extensive knowledge in leasing business and solutions. Served in distinguished capacities in different organisations of different nations

Mr. Philippe Denis Francis Desgeans Director

Mr. Kora Ipe Puthenpurockal

Independent Director

Mr. Puthenpurockal a masters degree from Indian Institute of Technology, Mumbai and has 36 years of experience in the

field of corporate banking.

He was senior advisor to the CEO and country manager of BNP Paribas India.

Mr. Chatterjee has over 46 years of experience in commercial and investment banking. He was the Executive Director of

Axis Bank Limited, Mumbai.

He has extensive exposure in the area of international banking having worked with the State Bank of India, London for

three years and in Washington D.C. for five years.

Mr. Shyamalendu Chatterjee

Independent Director

Mr. Devendra Kr. Vyas

CEO

Mr. Vyas is a Chartered Accountant by education.

Overall more than 21 years of industry experience with expertise in financial accounting, structuring, sales & marketing,

operations and IT.

Statutory Auditor • Deloitte Haskins & Sells

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Table of Contents

Company Overview & History

Financial Highlight

Key Strengths

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Financial Highlights

(1) USD INR conversion rate = 66.25 as at 31st March 2016 (*) Interest Earning Asset includes Securitized Portfolio

In USD million FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Interest earning asset (*) 1,336 1,758 2,546 2,813 2,667 2,715 2,772

Disbursement 761 1,145 1,735 1,632 1,167 1,165 1,382

Total Income 140 187 274 358 395 394 395

Profit before Tax 20 32 46 61 54 34 24

Profit After Tax 13 20 30 41 34 23 17

PAT Margin 9.36% 10.55% 10.85% 11.37% 8.60% 5.86% 4.41%

Cost to Income Ratio 29% 28% 33% 29% 27% 35% 36%

Cost of Risk Ratio 1.20% 1.39% 0.73% 0.82% 1.43% 1.89% 2.18%

Share Holders Fund 147 167 212 282 316 339 357

CRAR 17.90% 15.82% 16.92% 16.19% 17.13% 17.05% 19.62%

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Total Income & Net Interest income – USD mn

Disbursements – USD mn

Financial Highlights

Margin Analysis

1632

1167 1165

1382

0

200

400

600

800

1000

1200

1400

1600

1800

FY 2013 FY 2014 FY 2015 FY 2016

Disbursement

Shareholders Fund has increased from USD 147 mn as at 31 March 2010 to USD 357 mn as at 31 March 2016, at a CAGR of approximately 16%

Interest Earning Asset has increased from USD

1,336 mn as at 31 March 2010 to USD 2,772 mn as at 31 March 2016, at a CAGR of approximately 13%

Total income increased from USD 140 mn as at 31

March 2010 to USD 395 mn as at 31 March 2016, at a CAGR of approximately 19%

4.35%

4.63%

4.87% 4.77%

FY-13 FY-14 FY-15 FY-16

3.90%

4.20%

4.50%

4.80%

5.10%

Net Interest Margin

358 395 394 395

116 127 131 131

0

100

200

300

400

500

600

FY 2013 FY 2014 FY 2015 FY 2016

Total Income Net Interest Income

(*) Margin Analysis is calculated on total Portfolio (including securitization)

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Thank You