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Fullerton Securities and Wealth

Unit of measure
Advisors

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“Enabling Success, Enriching lives”
* Footnote December 2008
Source: Source 1
Agenda
Unit of measure

Temasek & FFH

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Our Differentiators

India Opportunity

Trainee Officer

* Footnote
Source: Source 2
Our Shareholder
Unit of measure

TemasekHoldings is an Asia investment house, managing a portfolio


of over S$185billion or US$134 billion. Guided by an independent
board, they operate autonomously on commercial principles to
maximiselong term shareholder returns.

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§Rated AAA / Aaa by Standard & Poor’s and Moody’s, respectively
§Diversified portfolio in a wide range of industries
– Telecommunications & Media : SingTel, Bharti Airtel, Global Crossing
– Financial Services : DBS, Standard Chartered Bank, Merrill Lynch,
Barclays
– Real Estate : Capital Land, Mapletree
– Transportation & Logistics – Singapore Airlines, Neptune Orient Lines,
PSA
– Energy & Resources – Singapore Power, Senoko Power, Powerseraya
– Infrastructure, Industrial & Engineering – Keppel Corporation,
Sembcorp
– Technology – Chartered Semiconductor, StatsChipPAC
§Respectable returns to shareholder over last 34 years
– Total shareholder returns of more than 18% per annum
§100% owned by the Ministry of Finance of Singapore
* Footnote
Source: Source 3
Fullerton Securities is a fully owned subsidiary of FFH/ Temasek
Unit of measure
Description
•Sovereign wealth fund with assets in
excess of US $130bn

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100% owned

•100% owned by Temasek


•Operating arm of Temasek’s Financial
Institutional interests
100% owned
•Manages assets in excess of US $30bn

•Established in 2005
•Largest NBFC operating in India
•~900 branches and 1 m customers in
short span of ~3 years
100% owned •

•Established in 2008

* Footnote
Source: Source 4
Fullerton Financial Holdings - Key Value Differentiation
Unit of measure

§Great Leadership §Leader in Commercial / SME,


Mass Consumer &
–Passionate, Balanced,
Mass Self-
Disciplined
employed segments

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§Customer-centric Business
Models §Enabling management model
–Relationship v/s Product and culture
Positioning §Empowerment within defined
§Deeply Embedded in each boundaries
Market & chosen Segment
§Embed the right values &
–High Market share – Top behavior across the
3
organization

* Footnote
Source: Source 5
Fullerton Financial Holdings
Unit of measure
•FFH is an adventurer and pioneer at heart, and continues to explore and expand on
new business opportunities in the financial sector.
•FFH is currently represented in 12 banks spanning 8 countries across Asia . . .

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Indi Chin Indonesi Malaysi
a a a a
•Fullerton India Credit •China Construction •Bank Danamon– •Alliance Bank–
Corp. Ltd. – 100% Bank – 6.6% Consortium 70% Consortium 30%
•Fullerton Securities & •Bank of China – 5.0% (FFH – 85%) (FFH – 49%)
Wealth advisors- •China Minsheng
100% Bank – 3.9%
•ICICI Bank – 7.9%

Taiwan Pakista South Thailan UAE


n Korea d
•E Sun Financial •NIB Bank – > 70% •Hana Bank – 10% •Siam Commercial •Dunia Finance
Holding Bank – 4.7% – 40%
Company – 15%

The latest venture has been launched in the United Arab Emirates!
* Footnote
Source: Source 6
FFH Board and Management team
Unit of measure
FFH Board FFH Management Team

Executive Director & CEO


Francis Rozario

Dr Richard Mr Francis Mr Peter

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Hu Rozario Seah
Chairman CEO/Exec. Director
Director Greater China & Human Resources
North Asia, Wong Soong Meng
Corporate Banking Lee Boon Chuan
Eric Chen

Central-Europe, Middle Risk Management


East & Africa Tej Hora
Consumer Business
Mr Vijay Ms Cheo Mr Manish Rajeev Kakar
Parekh Hock Kuan Kejriwal
Director Director Director Tom Sodano

SME & Commercial


Business
Jovasky Pang

Special Projects Corporate Planning


Mr Gan Mr Tow Ms Leong Sng Seow Wah & Development
Chee Yen Heng Tan Wai Leng Aamir Zahidi
Director Director Director

* Footnote
Source: Source 7
Dunia
Unit of measure
§FFH entered into a strategic partnership with Mubadala Investment Company PJSC, Waha
Capital PJSC (formerly known as Oasis International Leasing Company PJSC), and A.A.Al
Moosa Enterprises LLC, with 40% ownership by FFH. “Dunia Finance LLC” or “Dunia”, as it
is more commonly known, was created.
§
§Strong Brand Vision – Dunia will mean “a better world” to the millions of people that we

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serve. Multi layer brand universe, communication plan developed
§
caters to the mass affluent and affluent customer segments.

caters to the self-employed mass market segment.

caters to the salaried mass market segment.

§Distribution via 4 tiers: branches, service centres, kiosks, mobile ATMs

§52,000sqft low cost “centralised hub” established in Dubai outsource zone,


§
§Comprehensive IT program, upgradable to a bank
§
§Launched in September 2008

* Footnote
Source: Source 8
FFH’s foray into India with Fullerton India Credit Corporation
Aiming to serve the Masses
Unit of measure
To Serve Millions . . .

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3000+ branches . . .

. . . in 400+ cities by 2010

. . . across the length and breadth of India


* Footnote
Source: Source 9
Fullerton India Credit Corporation
Unit of measure
§Established in December 2005, Fullerton India’s business model is community
oriented, branch centric and endeavors to build enduring relationships with
customers.

§With over 900 branches across the country, demonstrating a sustainable

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customer acquisition rate of 50,000 customers a month. Currently has over
14,000 employees.
§
§Fullerton India is also testing a viable business model for the rural market which
has the potential to grow its operations three-fold.

§Fullerton India’s aim is to become the preferred financial partner to its


customers in the mass market and already markets loans and insurance
products to them. Fullerton India’s tag line in Hindi is “Humse kariye dil ki
baat” which means “come express your aspirations to us and we will help you
fulfill them.”

§Vyapaar is dedicated to meet the unique


requirements of Small sized Shop-
owners & Entrepreneurs
§There are now ~562 Vyapaar branches all
§Parivaar is dedicated to address the unique requirements over India
of the Salaried Individuals.
§
* Parivaar reached its targeted network of 280 by June 2008
Footnote
Source: Source 10
Agenda
Unit of measure

Temasek & FFH

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Our Differentiators

India Opportunity

Trainee Officer

* Footnote
Source: Source 11
We create value through focus & discipline…
Unit of measure
Vision Enabling Success, Enriching Lives

To create superior
Mission long-term shareholder value in

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financial sectors across Emerging Markets
•Organic Growth
•Acquire and Transform
•Improve Productivity
•Optimize Capital
•Risk-Reward Balance

Organizational Execution
Pillars Right People
Alignment
Processes
Discipline

Values
Caring ; Honesty ; Passion to Excel ; Team Work ; Disciplined Professionalism

Execution Unique
value
Business Financial Critical
KPI
People
Empower-
Discipline Proposition
model model path
ment

* Footnote
Source: Source 12
We strongly believe that customer’s needs & behavior follow a life-
stage pattern - Customers seek a relationship, not a set of products
Unit of measure

… we need to help
T customers progress
O
seamlessly / … the need to differentiate through a customer-centric v/s
upgrade inter-segment
r as needs evolve
v the conventional ‘Product-push’ approach
F
a e i
… increasingly noffer personalized solutions r
as customer’s
x
relationship expands s / deepens d

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e
a r d
… provide a Sunique, c positive and consistently
a positive
customer experience
a t at all pointsI
off contact and channels I M
Finance / BP&A
l i n t n a
a o
Revenue per Customer

M v c n
r n e / o a Credit People
o Analytics
A y s m g T & Risk •Trained & Competent
B r
n t M P e e r •Empathic
t
nC & a m a e d u •Responsive
n g •Customer Oriented
ur e r n / s
a •Ethical & Fair
ie U k n g s A t
g
td n i t i i E c s
s n
e Products Customer Process
ii s n o q c
et e g n •Full range Relationship •Superior Service
u o Reward •Life-stage •Simple
s c & F i u & approach •Convenient Sales
C u & u t n •Relationship •Error-free &
Recognition
a r Age / Life-stage
F n y t pricing •Timely Distribution
r e S u d s •Cross-sell benefits •Competent
•Customized to needs •Friendly
d d a n i
•Financially conservative •Financially aggressive •Simple to understand
v
•Financially challenged d n
•Realistic priorities, wants to •Objective to maximize and use
•Live within their
i
L means acquire wealth
s g wealth while conserving
n capital
o
•Typically risk-averse •Emphasis on capital
t es dni M

•Willing to experiment
a g protection; some risk-taking
eli f or P l ai c na ni F

Marketing
•Credit hungrynwiths Operations
s or
limited access, •Goal oriented, ready •Spoilt for choice
limited net investible access to credit
assets

Customer’s Consumer’s Customer’s


Main Bank Financial Advisor Broker
* Footnote
l eR

Source: Source 13
aN
Agenda
Unit of measure

Temasek & FFH

Last Modified 9/29/2008 7:25:30 PM India Standard TimePrinted 28/09/2008 23:04:42


Our Differentiators

India Opportunity

Trainee Officer

* Footnote
Source: Source 14
India - a key market for FFH
Unit of measure

•Provides FFH with access to one of the most rapidly


growing economies
•Large under and un-served segments
•Strong macro-economic fundamentals

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•Banking intermediation is still at low levels provides
significant opportunity for a new entrant
•Availability of talent, state-of-art lower cost technology,
and steadily improving infrastructure
•Emergence of Risk infrastructure like credit Bureaus help
to establish prudent practices
•Foreign Direct Investment inflows expected to double to
$11Bln
•Increasing levels of foreign trade
•Growing global integration

* Base year 2002


*** Footnote
Major world economies considered are the BRIC and G6 countries
Source:Source:Goldman
SourceSachs BRICs report 15
India offers a very attractive opportunity across ESTIMAT
all segments especially the mass affluent
Unit of measure ES
Currently addressed
by FFH

Total product revenue


pools Description

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2006 2011 CAGR
$ bn $ bn Percent
The mass affluent
HNI/Affluent 1.6 5.6 30 and higher income
segments are
experiencing very
Corporate HNW rapid growth rates
Salaried Mass affluent 3.6 8.9 20

SME
Retail Mass
Affluent 1.3 1.9 8
market*
Small
business Upper
mass Corporate/
affluent 4.8 8.0 10
Invst banking

Mass affluent Self emp-


loyed/ SME/
busin- 4.7 8.2 12
Micro business Commercial
Mass market esses

Commercial
1.4 2.7 14
mass market*
Un-bankable

Self employed Salaried Total* 17.4 35.3 15

* Footnote
Source:* Source
Does not include the large portion of the unorganized market in the mass market segment 16
Our aspirations for India are very high
Unit of measure

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ons through the largest proprietary distribution network with a personal relationship approach supported b

5 year goal

1 Achieve market share of 5% in equity broking and asset


distribution (own-branch player vs franchise/sub-broker)

2 Serve a satisfied customer base of ~1.5 million customers


within 5 years

* Footnote
Source: Source 17
Talented, well trained high caliber people
Unit of measure
Through a customer-centric business approach in-line with customer expectations delivered
through a high quality people

Unit sales model Key advantages


The relationship model is inline with
customer needs and addresses the

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current gaps in the industry
•Relationship vs. a product
Insurance approach . Relationship
specialist managed through
centralized team.
Consistent and superior
Customer Equity relationship mgt
broke-
rage •Ensures skills are
Loan SRM specia- augmented through a team
specia- list vs. an individual
list approach
3 product 18–20 rela-
specialists tionship •Helps in hiring high
quality people supported
per team officers to
by a robust training
to support accelerate
through a well defined
customer customer
career progress plan
acquisition acquisition
•Enables wider span of
control
•Attractive C/I dynamics
Centralized relationship management infrastructure through call centre and Internet through and aggressive
platform acquisition and continued
deepening mechanism

* Footnote
Source: Source 18
Wide distribution network - accessible to customers
Unit of measure
FS would build a distribution network while leveraging FICC distribution
•13 sales offices in 7 regions at launch
•Targeting total 100 outlets in pilot phase (including FICC branches)

FS
branches FICC
in pilot Distribution points in West
Regions branches

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Total population: 110 million people
1.NCR/ Rajasthan 3 127
2.North 2 145
3.West 2 112 FS owned sales office
2. North 4.Central 1 127 FICC branches
5.South 1 (Karnataka/AP)
2 158
6.South 2 (TN/Kerala) 1 132
7.East 2 99 Dhule -2 Jalgaon -2 Amravati-2 Nagpur- 8
Akola-2 Wardha-1
Aurangabad -6
Nashik -6 Yavatmal -2
Jalna - 1 Chandrapur2
Ahmednagar-2
1. NCR/Rajasthan Nanded- 2
Thane -6 Beed -1
Mumbai* -14 Sholapur -3
Pune- 17
Latur -2
Ratnagiri Satara
-2
Sangli -2
4. Central 7. East Kohapur -3
Margao-2

3. West •FS will leverage FICC distribution


strength to enhance its presence.
By year 5, FS will have ~8 owned
sales office, and will leverage ~120
5. South 1 FICC branches
(AP,
Karnatak •FS will penetrate into Tier-2 centers
while riding on FICC distribution.
Of the 127 FICC branches in West,
6. South 2
only 45 branches are in Tier 1
(Kerala,
centers – Mumbai, Pune andNavi Mumbai
* Includes
TN)
Nagpur

* Footnote
Source: Source 19
Through a relationship-driven organization
Unit of measure
eate Differentiation and Relevance by creating a relationship-driven customer-centric organization delivering value in line with the Unique Value

Customers

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Identified Unique Value
Proposition

Mass Market Mass Affluent Lower Affluent NRI


Customer
Business
Model

Loans and Mortgage

Wealth Management – Mutual funds, SIP

Products Insurance – Life and Non-life

Capital Markets – Equity brokerage, Margin funding, LAS

Other products – Structured notes, PMS etc.

Risk Corpor-
Finan- ate
Functional Opera- Tech- Compli- man-
HR Planning Audit Legal cial commu-
Support tions nology ance age-
control nication
ment

CEO

* Footnote
Source: Source 20
Agenda
Unit of measure

Temasek & FFH

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Our Differentiators

India Opportunity

Trainee Officer

* Footnote
Source: Source 21
Trainee Officer - Role Description
Unit of measure
• Acquire new customers and manage relationships
• Carry out personal lead generation and prospecting activities.
• Build a strong referral base from existing customers
• Cross- sell of multiple products to achieve desired product mix in the Sr. RM unit

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• Provide feedback from the field to the respective units to improve delivery and products
value
• Initiate micro marketing events focused on target segments.
• Manage relationship with other departments
• Ensuring all operating targets(e.g. New customer, x-sell ratio for existing customers)
are achieved
• Making daily Sales calls and ensure reporting in the standardized formats at desired
intervals
• Continuously enhancing product knowledge through trainings to increase productivity
• Interact with Sales / product specialists in the Sr. RM unit to deliver individual product
targets

* Footnote
Source: Source 22
Capability Building
Unit of measure
§Mandatory Certification
§EstablishTraining as a •IRDA
cornerstone of FSWA Product •AMFI
success – internally Brand Knowledge •NCFM
and externally §Internal Product

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fe Training

FS
re §Company Orientation
P

W
r

A
r fe §Systems and Processes

FS
e
R

W
§Coaching and

A
Mentoring Custom §Sales Kit – Right
§Manage large
E WO Selling
er W!
distributed teams VO §Customer Service –
– alignment, Skills exceed customer
C VO
engagement & C experience
Leadership VO
motivation YMDP §Develop Markets
§Develop talent –
build leadership W in W in
depth

Personal
Effectiveness

§Communication - Open and transparent


§Selection and Hiring
§Performance Management - Goal Setting
* Footnote §Work environment
Source: Source 23
FSWA – Training Grid : Sales and Distribution On Boarding
Unit of measure

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* Footnote
Source: Source 24
Employee Empowered Career Development
Unit of measure Many paths from A to B

A
Path 2

Path 1

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B
You can reach from’ A’ to ‘B’ via different
routes but in same time

Option 1 – Driving slow timed to clear signals at green lights without stops.

A typical career path has multiple decision points or ‘turns’,


usually driven by additional responsibility or an expanded role

A
Golden rules
–Employee can influence own
B
M
Option 2 – Driving fast but possible stops at red lights, similar destination ar

career path
–Cross functional expertise
encouraged
–Freedom to choose at any point
in tune A
B
* Footnote
Source: Source 25
Growth Path
Unit of measure

Senior Relationship Manager

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Product Specialist

Senior Relationship Officer

Relationship Officer

Trainee Relationship Officer

* Footnote
Source: Source 26
Compensation
Unit of measure
• Total Compensation

Fixed Compensation Variable Compensation Reimbursement

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• Paid Monthly • • Paid Monthly on achievement of • Petrol Reimbursement
• Components targets for expenses related to
1.Cash Components • business travel
•Basic • Mobile Reimbursement
•House Rent Allowance •
•Special Allowance
•Conveyance Allowance
2.Benefits
•Provident Fund
•Gratuity
•Employee State
Insurance
3.Health Benefits
•Medical Hospitalization
Insurance ( cover
for spouse, two
children and
dependant parents)
•Group Accident
Insurance

Note: The above entitlement may differ as role and level

* Footnote
Source: Source 27
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28
Thank You

Footnote
Source
Unit of measure

*
Source:

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