ISECNSE16 January 2024

ICICI Securities Limited has informed the Exchange about Investor Presentation

ICICI Securities Limited

January 16, 2024

National Stock Exchange of India Limited Listing Department Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

BSE Limited Listing Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

Dear Sir/Madam,

Sub: Investor Presentation and Performance Note

Ref: NSE Symbol - ISEC & BSE Scrip Code - 541179

This is further to our letter dated January 10, 2024 regarding the earnings call scheduled to be held on January 16, 2024.

Please find enclosed herewith the investor presentation and performance note for the quarter and nine months ended December 31, 2023.

Kindly note that the audio recording and transcript of the earnings call will be uploaded on the Company’s website at www.icicisecurities.com within the prescribed regulatory timeline

Thanking you,

Yours faithfully, For ICICI Securities Limited

Rupesh Jadhav Chief Manager

Encl.: As above

Member of National Stock Exchange of India Ltd, BSE Ltd and Multi Commodity Exchange of India Ltd. SEBI Registration: INZ000183631 CIN No.: L67120MH1995PLC086241

Registered Office: ICICI Venture House Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India Tel. (91 22) 6807 7100 Fax (91 22) 6807 7803

Corporate Office : Shree Sawan Knowledge Park, Plot No. D-507, T.T.C. Ind. Area, M.I.D.C, Turbhe, Navi Mumbai - 400 705 Tel.: (91 22) 6807 7100 Fax: (91 22) 6807 7801

Name of Compliance Officer (Broking Operations) : Ms. Mamta Shetty Email Address: complianceofficer@icicisecurities.com / Tel. (91 22) 4070 1000 Website Address: www.icicisecurities.com / www.icicidirect.com

Performance update

Q3-FY2024

January 16, 2024

Agenda

•

ISEC Quarterly Update

• Appendix

• Quarterly Business Performance

•

ISEC Franchise

Q3FY24 Performance Snapshot

Total Assets ₹ 6.9 tn1 +16% YoY / +7% QoQ

Client Base 9.7 mn +11% YoY/+ 2% QoQ

₹

Profit After Tax ₹ 4,657 mn3 +66% YoY/ +10% QoQ

Wealth Assets ₹ 4.1 tn2 +25% YoY/ +10% QoQ

₹

Revenue ₹ 13,233 mn3 +50% YoY/ +6% QoQ

ROE 55.6%3

v/s 43.0% in Q3FY23

1. Assets of our clients including equity demat assets maintained with ICICI Bank and excluding promoter holding, as on December,31 2023 2. Assets of our clients with more than INR 10 mn AUM at individual level including equity demat assets maintained with ICICI Bank and excluding promoter holding, as on December, 31 2023 3. For Q3 FY24

Q3FY24 Performance: Key Highlights

Revenue growth across business segments

Gained/ Held Market share in most revenue generating parameters

Traction in identified focus areas to propel growth

Q3FY24 Performance

Revenue growth across business segments

Equity Business

• Equity revenue grew by 63% YoY, contributing 25% of total revenue • Market share gains continued during the quarter

Derivative Business

• Derivative revenue grew by 24% YoY, contributes 10% of total revenue •

Improvement in underlying parameters of orders, clients and lots

Distribution Business

• Distribution revenue grew by 5% YoY, contributes 13% of total revenue • MF and other distribution revenue grew by 14% YoY and 16% YoY respectively • Distributed loans worth ₹ 21.7 Bn in Q3FY24, up 116% YoY

Allied Revenue

• Allied revenue grew by 36% YoY, contributes 29% of total revenue • Average MTF book grew by 56% YoY as we maintained our leadership position

Q3FY24 Performance: Market Share

Gained/ Held Market share in most revenue generating parameters

Q3FY23

Q3FY24

Retail Cash Market Share

10.5%

Retail Derivative Market Share#

3.8%

13.1*%

3.4%

Retail Option Premium Market Share

7.5% 8.0%

Commodity Market Share1

5.6%

7.5%

Mutual Fund AUM Market Share 1.7%

1.7%

We continue to maintain leadership position in MTF with a Market Share of ~22%

*Based on the revised disclosures by NSE for retail individual category in the equity segment from April’23. The market share so computed is therefore not comparable with the market share for Q3FY23 computed using earlier disclosures for others category

1 Excluding FII, DII and Proprietary # includes others

Q3FY24 Performance: Wealth Management

•

Total clients crossed 1,00,000; adding ~10,000 clients during the quarter

Total AUM at ~ ₹ 4.1 tn, grew 25% on YoY and 10% on QoQ basis

Total Revenue at ~ ₹ 4.0 bn, grew 56% on YoY and 12% on QoQ basis

Cost/Net Income at 44% in Q3FY24, v/s 40% in Q3FY23

INR Tn

3.25

AUM

3.71

4.07

25% YoY

87%

86%

13%

Q3-23

14%

Q2-24

14%

Q3-24

Recurring

Transactional

INR Bn

Revenue

2.59

37%

3.61

41%

4.03

38%

56% YoY

63%

59%

62%

Q3-23

Q2-24

Q3-24

Recurring

Transactional

1.9 0%

1.8 0%

1.7 0%

1.6 0%

1.5 0%

1.4 0%

1.3 0%

1.2 0%

1.1 0%

1.0 0%

1.64%

0.33%

0.14%

Q3-23

Yields

1.73%

0.40%

0.19%

Q2-24

1.83%

0.42%

0.18%

Q3-24

0.8 0%

0.7 0%

0.6 0%

0.5 0%

0.4 0%

0.3 0%

0.2 0%

0.1 0%

0.0 0%

* Cost / Net Income: Cost = (Employee benefit expenses + operating expense + Depreciation, amortization and impairment + Other expenses + Impairment on financial instruments), Net Income = Gross Revenue – Finance Cost – Fees & Commission Expenses

Recurring

Transactional

Blended

Q3FY24 Performance: Derivatives

Retail derivative broking revenue

In Q3FY24, the underlying parameters continued growth momentum with;

(in ₹ Mn)

1,016

1,367

1,235

22% YoY

•

F&O orders grew by 27% YoY

F&O lots grew by 95% YoY

F&O customers grew by 19% YoY

Q3-23

Q2-24

Q3-24

The sequential decline in revenue can be attributed to lower number of trading days and yield contraction

Derivative component in retail broking

Growth in derivative ADTO

37%

62%

33%

31%

66%

68%

1.6x

Q3-23

Q2-24

Q3-24

*Others include Commodity and Currency

Cash Derivatives Others*

Q3-23

Q2-24

Q3-24

Q3FY24 Performance: Loans

Consistent growth in total loans distributed

(in ₹ Bn)

10.0

21.7

14.6

•

Loans worth ₹ 21.7 Bn distributed in Q3FY24, up 116% YoY

Q3-23

Q2-24

Q3-24

Increasing proportion of other loans

34%

66%

45%

55%

65%

35%

Q3-23

Q2-24

Q3-24

Home Loan Other Loans

PILLARS OF GROWTH

• Multiple loan offerings with partnerships

•

Home loan

Personal Loan

Loans against Securities

Credit Cards, etc.

•

Existing customer base of 9 Mn+ customers

Digitization and decongestion of processes

Targeted offering through data analytics

Q3FY24 Performance: Personalisation

Synergy between analytics data model and engagement

Identifying customers backed by logical analysis who are most likely to purchase the product

Tracking customer interest by their engagement and set up multi layered digital journey

Real time click stream data and effective conversion tracking

Improving cross sell demonstrated from increasing number of client with 2 or more products, leading to revenue diversification

Display of relevant products on Website and Mobile App – ORGANIC FLOW

Pushing inactive customers basis the data intelligence provided – PUSH FLOW

In Mn

1.20

1.26

1.28

7% YoY

Q3-23

Q2-24

Q3-24

Q3FY24 Performance: Cost

Total Cost (₹ Mn)

6,796

6,994

On Cost,

5,026

• We saw decline in our net cost to income for the quarter as it was

down to 38% in Q3FY24

• We continue to spend on franchise enhancing technology to harness

growth opportunities

On NIMs, we continue to witness stability, at 3.1% for Q3FY24

Q3-23

Q2-24

Q3-24

Increasing Proportion of Finance Cost

14%

17% 4%

35%

30%

16%

14% 4%

34%

32%

13%

13% 4%

33%

37%

Total Operating Expenses

Others expenses

Depreciation, amortization and impairment Employee Benefits Expenses

Finance costs

Q3-2023 * Cost / Net Income: Cost = (Employee benefit expenses + operating expense + Depreciation, amortization and impairment + Other expenses + Impairment on financial instruments), Net Income = Gross Revenue – Finance Cost – Fees & Commission Expenses

Q2-2024

Q3-2024

Net Cost/ Income and MTF Book NIM

44.9%

41.9%

38.3%

3.0%

3.2%

3.1%

Q3-23

Q2-24

Q3-24

Net Cost/ Income

NIM on MTF Book

Due to substantial scale up of our MTF book, we have transitioned to Cost/Net Income as per industry standards and accordingly have also disclosed NIMs on MTF book. For earlier disclosure, you can refer our disclosure excel

Growing consistently as a franchise with…

Revenue growth across key business segments

Focus on acquisition of quality clients to improve stickiness

Market share improvement in revenue generating parameters across segments

Continued diversification of product width

Focusing on enhancing customer experience and personalization of products

Investment in franchise enhancing technology to harness growth opportunities

Agenda

•

ISEC Quarterly Update

• Appendix

• Quarterly Business Performance

•

ISEC Franchise

Q3FY24 Business Performance

Business segment wise Revenue Breakup

Retail Equities and allied revenue

Distribution revenue

Issuer services and advisory revenue

Institutional equities & allied revenue

Other revenue1

₹ 7,549 mn

₹ 1,746 mn

₹ 974 mn

₹ 903 mn

₹ 2,060 mn

+ 50% YoY + 8% QoQ

+ 5% YoY - 1% QoQ

+ 102% YoY + 23% QoQ

+ 94% YoY - 14% QoQ

+ 81% YoY + 10% QoQ

•

Revenue grew 50% YoY and 6% QoQ at ₹ 13,233 mn led by growth in broking income in the cash segment and

growth in Investment banking segment

Retail equities & allied revenue grew 50% YoY and 8%

QoQ due to increase in cash volumes and growth in

equity allied business

Issuer services and advisory income grew by 102% YoY

and 23% QoQ

PAT grew 66% YoY and 10% QoQ at 4,657 mn

Private Wealth Management

₹ 4,034 mn

+ 56% YoY + 12% QoQ

YoY:Q3-FY2024vs Q3-FY2023; QoQ: Q3-FY2024 vs Q2-FY2024 1. Includes Investment & trading, interest revenue from FDs as margin with exchanges and other revenue

Q3FY24 Business Performance : Retail Equities Business

Increasing Retail equities and allied Revenue grew by 50% YoY

(in ₹ Mn)

7,010

7,549

5,040

4,922

5,151

Derivative broking revenue grew by 22% YoY

(in ₹ Mn)

1,016

1,170

1,090

1,367

1,235

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Diversification in Equity Revenue with reducing component of cyclical component, i.e. cash broking

MTF book grew 56% YoY; leader with market share at ~22%

46%

20%

34%

46%

24%

30%

43%

22%

35%

42%

20%

38%

47%

16%

37%

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Cash Broking

Derivative Broking

Retail Allied Revenue

(in ₹ Bn)

63.9

64.4

60.6

99.8

79.3

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Continued focus on Texturization to reduce proportion of cyclical components

Q3FY24 Business Performance: Distribution Business

Distribution Revenue (in ₹ Mn)

Mutual Fund (in ₹ Mn)

Life Insurance (in ₹ Mn)

Other Distribution (in ₹ Mn)

1,929

1,669

1,587

1,761

1,746

1,004

983

981

1,088

1,148

482

456

464

463

520

531

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Q3-23 Q4-23 Q1-24 Q2-24 Q3-24

209

142

154

• Distribution revenue at ₹ 1,746 mn, up 5% YoY led by the increasing Mutual

fund distribution revenue

• MF AUM and SIP market share stood at 1.7% and 2.9% in Q3FY24

Scaling up of Loans Disbursement (in ₹ Bn)

10.0

3.5

6.6

12.5

4.5

8.0

11.6

4.9

6.7

14.6

6.6

8.0

21.7

14.1

7.6

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Home Loan

Other Loans

Q3FY24 Business Performance : Institutional Business

Institutional equities1 declined 32% YoY; up 10% on sequential basis Institutional equities revenue was up 94% YoY

• • • • • • •

Yearly decline attributable to decline in Cash ADTOs and muted capital markets The growth is attributable to momentum gain in Cash ADTOs and Block deals Franchise consolidated its position among the top domestic institutions Franchise consolidated its position among the top domestic institutions Strengthening FII franchise by entering into partnerships Strengthening FII franchise by entering into partnerships Research team secured #1 position in 4 sectors in Asiamoney poll

Issuer Services & Advisory revenue was up 102% YoY

•

YoY growth in revenue generation due to increasing deals

Strong IPO1 pipeline, 39 deals amounting over ₹ 614 bn; in addition mandate of 11 deals where amount is yet to be decided

Continued focus on building non-IPO revenue

1 IPO:IPO/FPO/InvIT/REIT

Institutional equities and allied Revenue (in ₹ Mn)

1,049

903

466

493

551

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Issuer services and advisory (in ₹ Mn)

974

791

483

362

127

Q3-23

Q4-23

Q1-24

Q2-24

Q3-24

Agenda

•

ISEC Quarterly Update

• Appendix

• Quarterly Business Performance

•

ISEC Franchise

ISEC Franchise: Pivots of Transformation

E-Broker Inception – FY19

Wealth- Tech FY20 – FY23

KEY OUTCOMES

Strategy

Product Focused Approach

Customer 360 Degree Approach

Diversified Customer Base

Dependent on ICICI Bank for customer sourcing

Open Architecture Sourcing

Increased Product Offerings

Significantly dependent on Retail and Institutional Equity

Embracing opportunity in savings & investments, distribution of loans & insurance

Technology, Analytics & Culture

Physical Process & onboarding “Build in-house” approach

Digital acquisition & Online process Agile Approach Hyper-Personalization

•

Franchise with significant scale and size

• Meaningful market share across

segments

•

Scale up of Wealth Franchise

Growth in Assets

Consistent Earnings

Scale up of Wealth Franchise

ISEC Franchise :Significant scale and size

Total Client Assets ₹2.4 tn1 ₹5.9 tn1 25% CAGR (FY19 – FY23)

Wealth Client Assets

₹1 tn2

₹3.2 tn2

34% CAGR (FY19 – FY23)

Client Base 4.4 mn 9.1 mn 20% CAGR (FY19 – FY23)

•

India’s trusted brand for financial services from the house of ICICI

Revenue

₹17.3 bn ₹34.3 bn 19% CAGR (FY19 – FY23)

Profit After Tax

₹11.2 bn ₹4.9 bn 23% CAGR (FY19 – FY23)

Return on Equity 42% For FY23

Client Acquisition 0.5mn 1.6 mn 38% CAGR (FY19 – FY23)

NPS Score3 20.8% 42.7%

Dividend ₹9.4 ₹19.0 Over 50% Consistent Payout

• Business in Transformation: E-Broker to Wealth-tech

Platform

• One of the Largest Wealth Franchise in the country

• Meaningful market share across segments

•

Leading and Established Institutional Franchise

• Responsible Franchise committed to purposeful ESG

Agenda

Sustained Financial Performance and Shareholding Returns

1. Assets of our clients including equity demat assets maintained with ICICI Bank and excluding promoter holding, as on Mar, 31 2023 and Mar, 31 2019 2. Assets of our clients with more than INR 10 mn AUM at individual level including equity demat assets maintained with ICICI Bank and excluding promoter holding, as on Mar, 31 2023 and Mar, 31 2019 3. For Q4 FY19 and Q4 FY23

ISEC Franchise: Meaningful market share across segments

13.1% Retail equity

5.3% NSE Active

21.7% Leadership position in MTF

2.3% Incremental Demat Account

3.4% Retail derivative

1.7% Mutual Fund AUM

7.51% Commodity

2.9% SIP

9.1% Sovereign Gold Bond

16.8%* ETF Market Share

As of Q3FY24 1 Excluding FII, DII and Prop

* As of Q2FY24

ISEC Franchise: Customer Assets

Consistent increase in Total Assets over long term 1

(in ₹ tn)

5.6

5.9

3.8

2.4

2.1

Leading wealth manager in the country with steady increase in Wealth AUM2

3.2

2.9

1.7

1.0

0.8

FY-19

FY-20

FY-21

FY-22

FY-23

FY-19

FY-20

FY-21

FY-22

FY-23

ISEC PMS Scaling Up

14.0

(in ₹ bn)

Growing MF Assets demonstrating strong distribution franchise 3

532

585

7.2

358

387

394

1.1

2.2

FY-20

FY-21

FY-22

FY-23

PMS was launched in FY20

FY-19

FY-20

FY-21

FY-22

FY-23

₹ 5.9 trillion Client Assets

1. Assets of our clients including equity demat assets maintained with ICICI Bank and excluding promoter holding 2. Assets of our clients with more than INR 10 mn AUM at individual level including equity demat assets maintained with ICICI Bank and excluding promoter holding, as on Mar, 31 2023 3. AUM including direct

ISEC Franchise: Growth in Earnings

Stable revenue despite multiple headwinds

Cost / Net Income

(in ₹ Bn)

34.4

34.3

54%

53%

25.9

17.3

39%

38%

45%

FY-19

FY-20

FY-21

FY-22

FY-23

FY-19

FY-20

FY-21

FY-22

FY-23

Decline in PAT as company is investing to in key areas to harness future opportunity

Consistent Dividend Payout of > 50%

(in ₹ Bn)

13.8

10.7

11.2

62%

65%

56%

55%

4.9

5.4

FY-19

FY-20

FY-21

FY-22

FY-23

FY-19

FY-20

FY-21

FY-22

FY-23

*Cost / Net Income: Cost = (Employee benefit expenses + operating expense + Depreciation, amortization and impairment + Other expenses + Impairment on financial instruments), Net Income = Gross Revenue – Finance Cost – Fees & Commission Expenses

ISEC Franchise: Consistently performing wealth segment

INR Tn

AUM

INR Bn

Revenue

1.7

1.4

0.3

0.8

0.7 0.2

FY20

FY21

2.9

2.5

0.4

FY22

3.2

2.8

0.4

FY23

Recurring

Transactional

Yield

1.55%

1.61%

63%

0.81%

0.28%

0.15% FY20

0.98%

0.36%

0.22% FY21

0.41%

0.21% FY22

0.33%

0.14% FY23

9.2

4.0

5.2

10.1

3.6

6.5

2.6

1.1 1.5

4.5

2.3

2.2

FY20

FY21

FY22

FY23

Recurring

Transactional

Cost / Net Income

45%

32%

39%

Recurring Yield Avg

Tnx Yield Avg

Blended Yield Avg

FY20

FY21

FY22

FY23

*Cost / Net Income: Cost = (Employee benefit expenses + operating expense + Depreciation, amortization and impairment + Other expenses + Impairment on financial instruments), Net Income = Gross Revenue – Finance Cost – Fees & Commission Expenses

Leading Institutional Franchise

ISSUER ADVISORY AND SERVICES

INSTITUTIONAL BROKING HOUSE

Leading Investment Bank

• IPOs, FPOs, REITs & InVITs • Transactions worth INR ~5.6 Tn • Part of every 2nd IPO launched

First Indian Lead Manager to

Top Equity Table

Experienced Deal Team

• Strong sector team with experience

across sectors

• Strong deal pipeline across advisory

and IPO

Strong Research & Institutional Reach

Source: Prime Database

•

Institutional Investor reach through Sales & Research team

Best Private Bank in India 2022

Best Securities House in India for three consecutive years

Largest M&A Deal Maker in 2020 & 2021

Advised on over 161+ transactions since April 2020

IPO/FPO REIT/InVIT

76 Issues

M&A & Private Equity

14 Transactions

~ INR 2,055,029 Mn

~ INR 1,150,030 Mn

Rights Issue & Structured Finance

19 Issue

QIPs/OFS/ Pref.

50 Issues

~INR 862,534 Mn

~INR 1,265,653 Mn

Open Offer/ Buyback/ Delisting

14 Transactions

Block Transactions

20+ Blocks

~INR 388,226 Mn

~INR 2,00,000 Mn

RESEARCH & STRATEGY

• 30+ sectors: 89 of top 100 cos covered • Large team: 30+ professionals

SALES

• Bandwidth across US, EU/UK, APAC & India • 12 member team catering to 200+ DII’s & 150+ FPIs

TRADING

• Services across Cash, Derivatives, DMA • Chinese wall between DMA & Cash • Among the leaders in market share for DII’s & FPI’s

CORPORATE ACCESS

• CXO level reach with 500+ corporates • Yearly conferences in APAC, US • Flagship Bengaluru Day, Financials, ESG & sectorial

conferences in India

Strategy Update: Progress vis-à-vis aspiration

Pivoted from a product centric approach to a more focused customer centric approach

Assets

2021

₹3.8 Tn

Cost / Net Income *

39%

2023

₹5.9 tn

45%

2025 Aspirations

₹10 tn

<35%

Diversification

Texturized equity and augmented non equity

Broking revenue < 40% Allied revenue > 20% Distribution revenue > 20%

3/4 categories contributing significantly to revenue streams

Customer Acquisition

>10% mkt share

* Net Cost / Net Income: Cost = (Employee benefit expenses + operating expense + Depreciation, amortization and impairment + Other expenses + Impairment on financial instruments), Net Income = Gross Revenue – Finance Cost – Fees & Commission Expenses

Responsible Franchise committed to a purposeful ESG Agenda

•

Board approved ESG framework articulating our approach of conducting ESG related aspects (link).

Executive level ESG Forum comprising of cross functional heads

Enhanced ESG disclosure in our ESG and BRSR Reports

BUSINESS ETHICS & GOVERNANCE

POSITIVE IMPACT CSR & SUSTAINABLE DEVELOPMENT

•

Segregation of Board and Executive Management

50% independent directors on board, 100% independent directors in audit committee

Imbibing strong ethical culture in the organization through comprehensive policies on Code of Conduct and Business Ethics, AML, POSH amongst others

•

Sustainable livelihood

• Health Care Services

•

Contribution to Incubators for support to Startups and R&D

Towards a more inclusive society

Environmental conservation

DATA PROTECTION

•

Information Security Management Policy and Cyber Security & Cyber Resilience Policy in place to protect against cyber-attacks, threats & vulnerabilities

Personal Data Protection Standard to increase employee awareness of data protection, acceptable data handling practices

HUMAN CAPITAL

• Human rights policy

•

Diversity, Equity and Inclusion Policy

Training, Development and Mentoring

ESG Framework link: https://www.icicisecurities.com/UPLOAD/ARTICLEIMAGES/ESG_Framework.pdf

Committed to creating a meaningful and positive impact

ESG Snapshot

ENVIRONMENTAL FOOTPRINT

Target to reduce energy consumption by 20%, Paper Consumption by 35% & Travel by 35% over FY25 over FY19 baseline

Total of Scope 1 & 2 emission reduced by 46% over FY19 baseline

Gold Certification from the US Green Building Council for our new Prabhadevi location

HUMAN CAPITAL

4728 permanent employees

27% females in new hires

Average training hours increased to 61 per employee/annum

Articulated formal value proposition ‘PLEDGE’ for employees

•

CORPORATE SOCIAL RESPONSIBILITY

1.2 Lac + Lives impacted

10 start-ups supported through CSR activities

6.7 lakh litres of drinking water treated daily

53 lakh litres of waste water treated for reuse

Received the ‘Golden Peacock Award for Corporate Social Responsibility, in BFSI Sector’ for FY2022 by Institute of Directors, India

RESPONSIBLE INVESTMENT

Integrated ESG risks when making proprietary investments

•

Refrain from investing into certain sensitive sectors

Sustainable development of Financial and Capital markets through ESG based MF offering

•

Awards and Recognitions

Best private bank - India Finance Asia Country Awards, 2022

Best IPO & Best QIP The Asset Triple A Country Awards for Sustainable Finance 2022

ETBFSI.com Excellence Award for 'Best initiative in Technology Orientation for ICICIdirect Markets app

MCX Leading Bank Broker Award FY2021-22

KamiKaze B2B Media 2023 Employee Happiness Award for Best Community Impact Initiative

BFSI Innovation CONFEX & Awards 2023 Best Digital Integrated Campaign of the year 2023

Euromoney Market Leader Award – 2022 for Highly Regarded Market Leader for Investment Banking in India – 2022

‘Digital Wealth Manager of the year- India’ By ‘The Asset Triple A Digital Awards 2022’

‘Mobexx- Mobile Advertising Excellence in Integrated Campaign’

1. Assets of our clients including equity demat assets maintained with ICICI Bank and excluding promoter holding 2.

Yield generated on all the assets of our clients (assets include their holding value across all product categories e.g. demat holding of equity shares, home loan, FD, mutual fund, PMS etc.)

Eminent and Experienced Board

Mr. Vinod Kumar Dhall Chairman Independent Director

Mr. Ashvin Parekh Independent Director

Mr. Subrata Mukherjee Independent Director

Ms. Vijayalakshmi Iyer Independent Director

Dr. Gopichand Katragadda Independent Director

Mr. Prasanna Balachander Non-Executive Director

Mr. Rakesh Jha Non-Executive Director

Mr. Vijay Chandok MD & CEO

Mr. Ajay Saraf Executive Director

9 eminent professionals as Directors with varied backgrounds, pioneers in respective fields

• • Well structured performance evaluation process for its Directors including MD & CEO •

5 Mandatory Committees and 14 Non-mandatory Committees with specialized functions including Risk Management Committee & CSR Committee

P&L summary : Consolidated

Q3-FY2023

Q2-FY2024 Q3-FY2024

% Y-o-Y % Q-o-Q

(₹ in mn)

Revenue

Finance Cost

Net Revenue

Operating Expenses

Employee benefits expenses

Other expenses

Total expenses

Profit before tax

Tax

Profit after tax

Other Comprehensive Income (OCI)

Total Comprehensive Income (TCI)

8,799

1,530

7,269

708

1,757

1,031

3,496

3,773

964

2,809

2,823

12,490

2,151

10,339

1,074

2,339

1,233

4,646

5,694

1,457

4,236

4,255

13,233

2,607

10,626

906

2,292

1,189

4,387

6,239

1,582

4,657

4,659

50%

70%

46%

28%

30%

15%

25%

65%

64%

66%

(84%)

65%

Period: Y-o-Y: Q3-FY2023 vs Q3-FY2024 ; Q-o-Q: Q2-FY2024 vs Q3-FY2024

21%

(16%)

(2%)

(4%)

(6%)

10%

(88%)

Balance sheet: Assets

ASSETS

Financial assets (A)

Cash/Bank and cash equivalents

Securities for trade & Derivatives financial instrument

Receivables

Loans

Investments

Other financial assets

Non-financial assets (B)

Deferred tax assets (net)

Right-of-use assets

Fixed assets, CWIP & Intangible assets

Current tax assets & other non financial assets

Assets (A+B)

At Mar 31, 2023

At Dec 31, 2023

(₹ in mn)

1,50,278

67,908

9,163

7,734

64,199

1,197

5,410

374

969

1,917

2,150

2,19,876

96,423

2,305

3,123

1,14,499

134

3,391

6,889

331

974

3,393

2,192

1,55,688

2,26,765

Balance sheet: Equity and Liabilities

EQUITY AND LIABILITIES

Financial liabilities (A)

Payables

Derivative financial instruments

Debt securities

Borrowings (Other than debt securities)

Lease liabilities

Deposits & Other financial liabilities

Non-financial liabilities (B)

Equity (C)

Equity share capital

Other equity

At Mar 31, 2023

At Dec 31, 2023

(₹ in mn)

1,21,471

9,148

87,887

5,039

1,083

18,314

5,692

28,525

1,614

26,911

1,86,442

17,066

1,37,994

1,021

1,085

29,276

6,657

33,666

1,616

32,050

Equity and Liabilities (A+B+C)

1,55,688

2,26,765

Thank You

ANALYSIS OF FINANCIAL PERFORMANCE FOR THE QUARTER ENDED DECEMBER 31, 2023 (Q3-FY2024)

January 16, 2024

Consolidated revenue increased by 50.4% from ` 8,798.8 million in Q3-FY2023 to `13,232.6 million in Q3-FY2024.

Consolidated profit after tax increased by 65.8% from ` 2,809.5 million in Q3-FY2023 to `4,656.9 million in Q3-FY2024.

Consolidated Profit & Loss Account Revenue From operations: (i) Interest income (ii) Dividend Income (iii) Fees and commission income Brokerage income Income from services (iv) Net gain on fair value changes (v) Others (I) Total revenue from operations (II) Other Income (III) Total Income (I+II) Expenses: (i) Finance costs (ii) Fees and commission expense

(iii) Impairment on financial instruments

(iv) Operating expenses (v) Employee benefits expenses (vi) Depreciation, amortization and impairment (vii) Other expenses (IV) Total expenses (V) Profit before tax (III-IV) (VI) Tax expense (VII) Profit after tax (V-VI) (VIII) Other comprehensive income/(Losses), net of taxes (IX) Total comprehensive income for the period (VII+ VIII)

Q3-FY2023

Q3-FY2024

% Change

(` in million)

2,689.6

4,546.2

69.0

3,137.4 2,777.8 181.1 3.7 8,789.6 9.2 8,798.8

1,530.3 425.9

15.0 266.6 1,756.8

193.5 837.4 5,025.5 3,773.3 963.8 2,809.5

4,647.2 3,794.7 234.6 4.6 13,227.3 5.3 13,232.6

2,606.5 511.1

33.2 362.1 2,291.7

271.6 917.4 6,993.6 6,239.0 1,582.1 4,656.9

13.5

2.2

2,823.0

4,659.1

48.1 36.6 29.5 24.3 50.5 (42.4) 50.4

70.3 20.0

>100 35.8 30.4

40.4 9.6 39.2 65.3 64.2 65.8

(83.7)

65.0

Consolidated Balance Sheet

Financial assets

Non-financial assets

Total assets

Financial liabilities

Non-financial liabilities

Equity

Total liabilities

Explanatory notes for Q3-FY2024:

(` in million)

As at March

As at December

31, 2023

1,50,277.9

5,410.1

1,55,688.0 1,21,471.1

5,691.9

28,525.0

1,55,688.0

31, 2023

2,19,875.70

6,889.10

2,26,764.80

1,86,441.90

6,657.30

33,665.60

2,26,764.80

% Change 46.3

27.3

45.7

53.5

17.0

18.0

45.7

•

Interest income increased from ` 2,689.6 million for Q3-FY2023 to ` 4,546.2 million in Q3- FY2024, an increase of 69.0%. This was primarily due to increase in average MTF funding book and MTF & fixed deposits yields.

• Brokerage income increased from ` 3,137.4 million for Q3-FY2023 to ` 4,647.2 million in Q3- FY2024, an increase of 48.1%. This was primarily due to increase in equity & derivative volumes.

•

Income from services increased from ` 2,777.8 million for Q3-FY2023 to ` 3,794.7 million in Q3-FY2024, an increase of 36.6%. This was primarily on account of increase in issuer services & advisory fee income and income from distribution products.

• Net gain on fair value changes increased from ` 181.1 million in Q3-FY2023 to ` 234.6 million in Q3-FY2024, an increase of 29.5%. This was primarily due to gain on fair value changes in our treasury segment.

• Finance costs increased from ` 1,530.3 million for Q3-FY2023 to ` 2,606.5 million in Q3- FY2024. This increase was primarily due to increased borrowing to fund MTF and increase in borrowing cost on account of increased interest rate.

• Fees and commission expenses increased from ` 425.9 million for Q3-FY2023 to ` 511.1

million for Q3-FY2024, primarily due to increase in revenue linked payout to partners.

• Operating expenses increased from ` 266.6 million for Q3-FY2023 to ` 362.1 million in Q3-

FY2024, mainly due to increase in operating expenses linked to volumes.

• Employee benefits expenses increased from ` 1,756.8 million for Q3-FY2023 to ` 2,291.7 million in Q3-FY2024 primarily on account of annual increments in salaries, increase in headcount & consequent increase in fixed salaries as well as higher variable pay.

• Depreciation and amortization expense increased from ` 193.5 million for Q3-FY2023 to ` 271.6 million for Q3-FY2024, primarily on account of depreciation and amortization on technology related assets

• Other expenses increased from ` 837.4 million in Q3-FY2023 to ` 917.4 million in Q3-

FY2024, an increase of 9.6%, primarily due to increase in technology expenses.

• Total assets increased from ` 1,55,688.0 million as at March 31, 2023 to ` 2,26,764.8 million as at December 31, 2023, an increase of 45.7%. This increase was primarily due to increase in MTF and ESOP book from ` 64,198.8 million as at March 31, 2023 to ` 1,14,498.9 million as at December 31, 2023 and bank balance other than cash and cash equivalents from ` 65,501.3 million as at March 31, 2023 to ` 95,971.9 million as at December 31, 2023.

• Total liabilities and equity increased from ` 1,55,688.0 million as at March 31, 2023 to ` 2,26,764.8 million as at December 31, 2023, an increase of 45.7%. This increase was primarily due to increase in borrowings from ` 87,886.9 million as at March 31, 2023 to ` 1,37,994.2 million as at December 31, 2023, increase in Trade payables from ` 9,148.4 million as at March 31, 2023 to ` 17,066.3 million as at December 31, 2023 & increase in other financial liabilities from ` 18,239.6 million as at March 31, 2023 to ` 29,178.2 million as at December 31, 2023.

Disclaimer Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘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 broking business and other financial 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 exploration of merger and acquisition opportunities, our ability to integrate mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, 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 insurance regulations and other regulatory changes in India and other jurisdictions on us. ICICI Securities Limited undertakes 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. For investor queries please email at IR@icicisecurities.com

1 billion/million = 100 crore / 10 Lakhs

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