~ fl 1c1c1 Securities October 22, 2019 National Stock Exchange of India Limited BSE Limited Listing Department Listing Department Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Sandra (E), Mumbai - 400 051 Mumbai - 400 001 Dear Sir/Madam, Sub: Outcome of earnings call held for results for the quarter and half year ended September 30, 2019 Ref: NSE Symbol - ISEC and BSE Scrip Code - 541179 This is further to our letter dated October 16 , 2019 regarding the earnings call which was scheduled to be held on October 22, 2019. Please find enclosed herewith the investor presentation and the opening remarks for the earnings call held on October 22, 2019 to discuss the financial results for the quarter and half year ended September 30, 2019. The same has also been uploaded on the website of the Company i.e. www.icicisecurities.com. Thanking you, Yours faithfully, For ICICI Securities Limited Rupesh Jadhav Senior Manager Encl.: As above Member of National Stock Exchange of India Ltd. SSE Ltd and Metropolitan Stock Exchange of India Ltd. SEBI Registration : INZ000183631 GIN No.: L67120MH1995PLC086241 ICICI Securities Limited l Registered Office {Institutional): Corporate Office (Retail): ) ICICI Centre, H. T. Parekh Marg, Shree Sawan Knowledge Park. Plot No. D-507, Churchgate, Mumbai 400 020, Ind ia. T.T.C. Ind. Area. M.I.D.C,Turbhe, Navi Mumbai· 400 705 Tel (91 22) 2288 2460/70 Tel (91 22) 4070 1000 Fax 191 22) 2288 2 45 5 Fax 191 22) 4070 1022 t\tPOWt'ilNQ lt-NES'l'ORS A ~fl31 lri1tR>1• Name of Compliance Officer (Broking Operations) : Mr. Anoop Goyal Email Address: comp lianceofficer @ icic isecuri ti es.com / Tel 191 22 ) 4070 1000 Website Address: www.icicisecurities.com/ www.icicidirect .com
/CIC/ Securities Per erfo formance rmance Re Revi view ew Q2 Q2-FY2 Y2020 020 October 22, 2019
Ag Agenda da Our Busin iness ss • Business Environment • Strategy & Updates • Business Performance • Financial Results • FOR YOU
ICIC IC ICI I Se Securities curities has built ilt an en enviable viable fr franc nchis hise … 4.6 mn Growing customer base Largest Equity broker in terms of revenue Assets under advise of our wealth clients 1 > ` 800 bn Amongst leading wealth franchises 2 nd Largest non-bank mutual fund distributor by revenue 2 1 st Rank in the IPO by value 3 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 3
… and a stick icky y customer tomer base se over er the e years rs High gh Custome mer r Stickin ckiness ess Revenue contribution by customers who have been with us for more than 5 years > > 65% 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 4
Agen Ag enda da Our Business • Busin iness ss Environm vironment ent • Strategy & Updates • Business Performance • Financial Results • FOR YOU
Ca Capi pital tal mar arket: t: Sl Slow ow do down wn in n pr primar ary y & s & seco condary ndary mar arket Weak FII flow Contribution of better yielding delivery volume reducing FII Equity Flow in USD billion Delivery volume contribution to Overall Equity volume 3.4 1.5 30% (4.1) 27% (0.0) 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 1,148 227 718 592 155 107 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 6
Equ quity ty mar arket et vo volatil atile e wi with th sha harp rp do down wnwa ward rd bi bias as Nifty Midcap Index Nifty Small cap Index 8,390 20,290 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 4,500 14,500 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 7
Ag Agen enda da Our Business • Business Environment • Strategy egy & Updates • Business Performance • Financial Results • FOR YOU
~ ~ ~ ~ Working rking toward wards s broade oadening ning the e positio sitionin ning 111. t:-°' J,\'I lltua1 fu,-,d / 'b I' CJO .~ %. o(,,j ij\ (b'o ~ Weal alth th & (J Invest stments ts I Impera rativ tives: es: Broad basing business model • I Diverse and granular revenue streams • -5 ci;' 0, Assets ts & b f Prote tecti tion on Loans <; G ~1 ~& 0/4 '<:"0'li- Mort 9age L,ie / / -- __ ____. To be see een as compre prehe hensiv sive e financia ancial solutio tions ns provider vider for the afflue fluent nt Indian n - Powered ered digi gita tally 9
■ I Strateg St rategy: y: St Strengthe engthening ning the e core re and building ilding the e fu future ure mping up sc scale and d value A. Ramping by augmen menti ting ng and d aligning igning gro rowth th engines gines E. Operatin perating g leve vera rage ge B. Monetize netize clien ent value lue throu rough gh cost t efficiency ficiency D. Robust bust techno hnology logy and d C. Impro provin ving custo tomer mer digi gital tal agili ility ty exper xperience ience 10
A. A. Rampin mping-up up scale ale & value lue by augm gmenting enting & aligning igning gr growth wth engi gines nes Business Bank win-win Digital on- partners partnership boarding Natura ural alignment nment: New Re-engineer • • Digitally offer B2B2C • revenue sharing entire on- proposition to scale agreement boarding business partners: process • On-boarding of partner Sourcing cing focus: s: • • On-boarding of clients Targeting affluent and by the partner equity affinity client • Client management and segments platform support Enlarge arge focus: s: NRI • Better customer quality Modernise and Broad base and higher activation scale-up growth 11
Progress: gress: Im Improv roveme ement nt in active ctive clie ient nt share re Ramping ing scale e & value ue Quality ty of Sourcing cing • Market share 2 in active client base (NSE) at 21 month high New arrangement with ICICI Bank • Activation rate 1 up from 33% to 46% for client sourced by bank • 10.07% 10.03% • 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% Ill 9.45% NRI • 9.40% 9.38% Started sharing digital leads with UAE & Bahrain, making • onboarding process smoother for customer Business partners Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 • Network at 8,000+ in Q2-FY2020, up by 29% • Digi gita tal Sourcing cing • Improvement in daily run rate of accounts opened • 9.1 lac NSE active clients 2 • completely online Consistently adding active clients for last 8 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 12 Period: Q2-FY2020 vs Q2-FY2019, QoQ: Q2-FY2020 vs Q1-FY2020
B. Monet netiz ize e client ient value lue Insta digi gita tal l loans as a n new asset cl class Digital lending to eligible customers for personal, auto 01 01 loan, home loan top-up, credit card, LAS and deposits Digi gital al Insura rance ce 02 02 Ramping up distribution of insurance digitally • Health, Travel, Auto, Two wheeler and Term Enhancing product choice and product options 03 03 Margi gin tradin ing g facilit lity MTF extended on NSE ESOP funding ng 04 04 Leveraging ESOP funding to build high quality client sourcing and enhancing revenue stream Streng ngthe theni ning g wealth manage gemen ent t franchise ise 05 05 Comprehensive proposition for wealth clients including curated proprietary offering 13
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