JPMorgan Indian Investment Trust plc AGM

JPMorgan Indian Investment Trust plc AGM February 2018 Rukhshad Shroff, CFA, Managing Director, Emerging Markets and Asia Pacific Equities Team Rajendra Nair, CFA, Managing Director, Emerging Markets and Asia Pacific Equities Team

Portfolio Performance and Positioning 1

Performance JPMorgan Indian Investment Trust plc as of 31 st December 2017 Market value JPMorgan Indian Investment Trust plc (Diluted) GBP 915.5m^ Annualised performance (%) Three months Six Months YTD One year Three years Five years Since Inception # JPMorgan Indian Investment Trust plc 8.89 10.24 29.87 29.87 15.66 15.78 9.91 MSCI India (NDR)* 10.91 10.55 26.74 26.74 13.96 12.94 7.49 Excess return (Geometric) -1.81-0.28 2.46 2.46 1.49 2.51 2.25 Calendar year performance (%) 2011 2012 2013 2014 2015 2016 2017 JPMorgan Indian Investment Trust plc -32.29 18.92-6.43 43.71 3.59 15.01 29.87 MSCI India (NDR)* -36.70 20.43-5.62 31.57-0.69 17.57 26.74 Excess return (Geometric) 6.96-1.26-0.86 9.22 4.31-2.18 2.46 ^JPM shadow valuation, # Inception: 1 Jul 1994 * Prior to 1 Oct 2003, BSE100 index Source: J.P. Morgan Asset Management, MSCI, Thomson Reuters Datastream. Net asset value performance data has been calculated on a NAV to NAV (using the cum income NAV with debt at fair) basis, including ongoing charges and any applicable fees, with any income reinvested, in GBP. Past performance is not a reliable indicator of current and future results 2

Performance (GBP) JPMorgan Indian Investment Trust plc as of 31 st December 2017 1000 900 800 700 NAV (Net of fees) MSCI India (NDR) (Prior to 1 Oct 03, BSE100) Share Price 600 500 400 300 200 100 0 07/94 07/96 07/98 07/00 07/02 07/04 07/06 07/08 07/10 07/12 07/14 07/16 Source: J.P. Morgan Asset Management. Past performance is not necessarily a reliable indicator of current and future performance. 3

Performance attribution JPMorgan Indian Investment Trust plc Calendar Year 2017 Attribution summary Benchmark Stock: -0.59 Sector: 5.00 MSCI India (NDR) Sector attribution (%) Top five contributors Relative weight (%) Stock return (%) Impact (%) Asset Allocation Stock Selection Motilal Oswal Financial Services Limited 2.11 179.58 1.91 Financials (o) 3.96 Maruti Suzuki India Limited 3.31 79.35 1.30 Consumer Discretionary (o) Information Technology (u) Health Care (u) Utilities (u) Real Estate (o) Materials (o) Telecommunication Services (u) -0.31-0.51 1.52 0.66 0.18 0.10 0.07 IndusInd Bank Ltd. 6.15 45.00 1.03 HDFC Bank Limited 8.81 39.46 0.91 Jubilant Foodworks Limited 1.56 100.78 0.80 Top five detractors Relative weight (%) Stock return (%) Impact (%) Reliance Industries Limited -7.11 66.49-2.05 Industrials (o) -0.54 Hindustan Unilever Limited -2.61 63.28-0.69 Consumer Staples (u) Energy (u) Cash (u) -0.70-1.54 1.52 Multi Commodity Exchange of India Limited 1.04-29.03-0.68 Bharat Heavy Electricals Limited 0.72-20.79-0.59-3.0-2.0-1.0 0.0 1.0 2.0 3.0 4.0 5.0 Bharti Airtel Ltd. -1.67 68.73-0.56 Source: J.P. Morgan Asset Management, MSCI, FactSet, gross of fees in GBP. Data for Total Attribution shown (stock selection plus sector allocation). Attribution may not match official returns due to differences in systems, rounding. Past performance is not an indication of current and future performance. The trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not an indication of current and future performance. 4

Performance attribution JPMorgan Indian Investment Trust plc 36M to 31 st December 2017 Attribution summary Benchmark Stock: 5.53 Sector: 5.89 MSCI India (NDR) Sector attribution (%) Top five contributors Relative weight (%) Stock return (%) Impact (%) Financials (o) 8.23 Maruti Suzuki India Limited 2.97 232.47 3.61 Consumer Discretionary (o) 2.87 Motilal Oswal Financial Services Limited 1.67 599.03 3.42 Materials (o) Telecommunication Services (u) Industrials (o) Real Estate (o) Information Technology (u) Utilities (u) Health Care (u) Consumer Staples (u) Energy (u) -0.32-0.95-2.56-2.57 1.34 0.83 0.59 0.44 2.09 Asset allocation Stock selection Ashok Leyland Limited 3.69 171.91 3.35 HDFC Bank Limited 8.25 102.49 3.21 IndusInd Bank Ltd. 5.07 116.82 2.68 Top five detractors Relative weight (%) Stock return (%) Impact (%) Reliance Industries Limited -5.32 12.53-3.28 Hindustan Unilever Limited -2.99 116.38-1.41 Bharat Heavy Electricals Limited 0.41-61.48-1.40 Cash (u) 2.42 Gujarat Pipavav Port Limited 1.44-20.98-1.06-5.0 0.0 5.0 10.0 Sun Pharmaceutical Industries Limited 1.06-20.88-1.01 Source: J.P. Morgan Asset Management, MSCI, FactSet, gross of fees in GBP. Data for Total Attribution shown (stock selection plus sector allocation). Attribution may not match official returns due to differences in systems, rounding. Past performance is not an indication of current and future performance. The trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not an indication of current and future performance. 5

12/03 04/04 08/04 12/04 04/05 08/05 12/05 04/06 08/06 12/06 04/07 08/07 12/07 04/08 08/08 12/08 04/09 08/09 12/09 04/10 08/10 12/10 04/11 08/11 12/11 04/12 08/12 12/12 04/13 08/13 12/13 04/14 08/14 12/14 04/15 08/15 12/15 04/16 08/16 12/16 04/17 08/17 12/17 Active Share JPMorgan Indian Investment Trust plc as of 31 st December 2017 Benchmark MSCI India (NDR) Active Shares (%) 80 Active Shares % 70 60 50 40 30 20 Source: J.P. Morgan Asset Management. Active Shares is a measure of the percentage of stock holdings in the portfolio that differ from the benchmark index. Past performance is not a reliable indicator of current and future results 6

Portfolio positions JPMorgan Indian Investment Trust plc as of 31 st December 2017 Benchmark MSCI India (NDR) Top 10 holdings Fund weight (%) HDFC Bank Limited 9.0 Housing Development Finance Corporation Limited 7.6 Maruti Suzuki India Limited 7.4 Axis Bank Limited 5.2 UltraTech Cement Limited 5.0 IndusInd Bank Ltd. 4.9 Bajaj Auto Limited. 4.4 Ashok Leyland Limited 4.0 ITC Limited 4.0 ACC Limited 3.9 Top 5 overweights Fund weight (%) Relative position (%) HDFC Bank Limited 9.0 9.0 IndusInd Bank Ltd. 4.9 4.9 Maruti Suzuki India Limited 7.4 4.0 Kotak Mahindra Bank Limited 3.8 3.8 UltraTech Cement Limited 5.0 3.7 Top 5 underweights Fund weight (%) Relative position (%) Reliance Industries Limited 0.0-7.9 Infosys Limited 0.0-6.3 Hindustan Unilever Limited 0.0-2.9 ICICI Bank Limited 0.0-2.5 Bharti Airtel Ltd. 0.0-2.1 Source: J.P. Morgan Asset Management. The trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. 7

Sector positions JPMorgan Indian Investment Trust plc as of 31 st December 2017 Benchmark MSCI India (NDR) Active and absolute sector positions Relative to benchmark (%) 25.0 20.0 18.8 15.0 13.0 10.0 5.0 0.0-5.0-10.0-15.0 6.6 Financials Banks Diversified Financials -0.7 Insurance 9.0 8.5 3.8 0.5 Consumer Materials Industrials Real Discretionary Estate -1.7-2.1-3.0 Telecoms Utilities Health Care -4.2 Consumer Staples -10.8 Information Technology -12.3 Energy -6.4 Cash Portfolio weight (%) 41.9 32.6 9.3 0.0 22.0 18.4 9.7 0.5 1.7 0.0 2.9 5.2 3.9 0.3-6.4 Source: J.P. Morgan Asset Management. Individual figures may not add up exactly to the total due to rounding. The trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. 8

Portfolio characteristics JPMorgan Indian Investment Trust plc as of 31 st December 2017 Benchmark MSCI India (NDR) Portfolio Fund Benchmark Market capitalisation (USD) Number of Holdings 42 78 50% Fund Benchmark Top 10 Holdings (% of Fund/Benchmark) 55.3 44.1 Top 20 Holdings (% of Fund/Benchmark) 85.7 61.2 45% 40% 35% 30% 36.0 43.1 31.3 36.0 26.6 Top 30 Holdings (% of Fund/Benchmark) 100.9 72.3 25% 20% 19.7 12-Month Forward Price to Earnings (x) 22.9 18.7 3-5 Year Earnings Per Share Growth (%) 21.6 16.8 Active Share (%) 70.6 15% 10% 5% 0% 10.3 1.2 2.2 0.0 > 30 bn 10 bn - 30 bn 4 bn - 10 bn 1 bn - 4 bn < 1 bn Source: FactSet, J.P. Morgan Asset Management. The trust is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not a reliable indicator of current and future results 9

Outlook 10

Recent backdrop MSCI India Index returns in 2017 38.8% MSCI India Small Cap Index returns in 2017 67.0% Trailing PE MSCI India Index 23.6x Record mutual fund inflows in 2017 USD30bn Growth stagnation Yet meaningful reforms Source: J.P. Morgan Asset Management. As of 31 st December 2017. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. PE = Price to Earnings Ratio 11

Outlook 2018 possible turbulence to absolute returns Cleansing process underway Clearing path to recovery Improving corporate health Compelling 3 5 year outlook Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 12

The Modi era: Big changes, many firsts A majority government, strong leader, strategic vision Changes: Undoing, then rebuilding Governance, Inclusive growth and efficiency Examples: Aadhaar (National ID programme) Financial Inclusion: Jan Dhan and Direct Benefits Transfer (DBT) Bankruptcy Code May 2016 Demonetisation November, 2016 Goods and Services Tax (GST) July 2017 Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. The Modi era references to the period in which Narendra Modi (Prime Minister of India) has been in office. 13

Financial Inclusion: A Key Theme ~1.2bn Unique IDs (UID) issued almost every Indian is now covered 1,200 1,000 800 600 400 200 Cumulative UID enrolment 0 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Jul 17 Source: CLSA, data from July 2012 to October 2017 Rising Smartphone penetration is driving the fintech revolution (m) Bank accounts for the unbanked : Over 300m new bank accounts opened, with rising balances 400 300 200 100 (m) No. of Jan Dhan accounts opened Balance in PMJDY accounts (RHS) Demonetisation 0 08/14 01/15 06/15 11/15 04/16 09/16 02/17 07/17 Source: CLSA, data from September 2014 to October 2017. PMJDY = Pradhan Mantri Jan Dhan Yojana (Rs bn) Digital payments is growing exponentially, particularly after Demonetisation 800 600 400 200 0 Mobile subscribers Data penetration (RHS) 1,500 (m) (%) 1,000 500 0 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18CL Source: CLSA, data as of 17 th November 2017 50 40 30 20 10 0 25,000 20,000 15,000 10,000 5,000 0 (Rsbn) Credit card POS Debit card POS Mobile banking Mobile wallet FY13 FY14 FY15 FY16 FY17 1HFY17 1HFY18 Source: CLSA, data as of 17 th November 2017 14

Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Digital money UPI: Monthly transaction value (INR bn) Average UPI ticket size (INR) Pre-Demonitisation Post-Demonitisation 131 Pre-Demonitisation 5,300 4,713 4,577 Post-Demonitisation 97 4,300 3,994 3,881 71 3,300 3,520 0 0 0 1 7 17 19 24 22 28 31 34 41 53 2,300 1,300 300 333 3,017 2,485 1,720 904 Source: Reserve Bank of India, National Payment Corporation of India, Bernstein Research as of 19 th January 2018. UPI = Unified Payments Interface Source: Reserve Bank of India, National Payment Corporation of India, Bernstein Research as of 19 th January 2018. UPI = Unified Payments Interface 15

Goods and Services Tax Long term positive Near term challenges Transparent tax structure removes cascading effect Shift from unorganized to organized Boost tax collections X X X Multiple & changing tax slabs Onerous filing process Initial disruption = temporary shortfall in tax collections Better supply chain efficiency X Job losses in the unorganized sector Business decisions on economic merit rather than tax incentives One unified market = ease of doing business Lower product prices = boost demand Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 16

Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Cyclically depressed Quarterly GDP* Growth Credit Growth 12 YoY% 36% Credit Growth 10 8 New GDP Series 32% 28% 24% 6 20% 4 2 0 New GDP series from Jun-12, extended backwards using trend in old series 16% 12% 8% 4% Source: Central Statistics Offices, Centre for Monitoring Indian Economy, Morgan Stanley Research, Data from March 2000 to September 2017. * GDP = Gross domestic product Source: Centre for Monitoring Indian Economy, Morgan Stanley Research, 30 th December 2017 17

The investment cycle has been the key source of disappointment Gross Fixed Capital Formation as of GDP (%) Capacity utilisation 40 (%) Tr-12 mth 82 35 30 25 26 30 32 33 35 34 34 33 34 33 31 30 29 27 80 78 20 76 15 74 10 72 5 70 0 FY04 FY06 FY08 FY10 FY12 FY14 FY16 68 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Source: CLSA, as of 15 th January 2018 GDP = Gross Domestic Output Source: CLSA, as of 15 th January 2018 18

Strong correlation between GDP and earnings growth, long term Market vs. Economy 14 12 10 8 6 4 2 Nominal GDP growth (%) BSE 500 Profits Growth 0 5-yr Average 10-yr Average 15-yr Average 20-yr Average Source: Central Statistical Organisation, CLSA, as of 17 th January 2018. 19

FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E Long term earnings growth and cyclicality Sensex Index Earnings Per Share (EPS) FY17-19: 17.6% CAGR 1,852 FY93-17: 12% CAGR FY08-17: 5.5% CAGR 1,3341,3571,346 1,338 1,520 FY93-96: FY93-96: 45% FY96-03: FY96-03: 1% 1% CAGR CAGR 45% CAGR CAGR 81 129 181 250 266 291 278 280 216 236 FY03-08: FY03-08: 25% 25% CAGR CAGR 272 361 446 540 720 833 820 834 1179 1109 1024 Source: Motilal Oswal Securities Ltd, data from 1993 to 2016. Estimates as of 17 th January 2018. CAGR = Cumulative Annual Growth Rate Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Past performance is not a reliable indicator of current and future results 20

Operating Leverage can drive earnings growth and profitability MSCI India Index 24% 110% 22% 20% Asset Turn Trend (RHS) 100% 90% 18% 16% 14% ROE Trend (LHS) 80% 70% 12% 60% 10% 50% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Worldscope, RIMES, MSCI, Morgan Stanley Research, as of 31 st December 2017. Past performance is not a reliable indicator of current and future results 21

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Improving corporate health Free Cash Flow to Sales BSE 500 (ex-financials) 15% BSE 500 (ex-financials) 100% Debt change YoY (RHS) 100% 10% 80% Net Debt/Equity 80% 5% 60% 60% 40% 40% 0% 20% 20% -5% 0% 0% -10% -20% -20% Source: Capitaline, Company Data, Morgan Stanley research, as of 31 st December 2017 Source: Capitaline, Company Data, Morgan Stanley research, as of 31 st December 2017 22

Nov-07 May-08 Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Nov-17 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Inflation has rebounded recently Inflation Short-term Policy Rate and 1-year Deposit Rates 13% 11% 9% YoY% WPI CPI - New Index 11% 10% Repo Rate SBI 1 year Deposit Rate* 10 Yr Yield 7% 9% 5% 3% 8% 1% 7% -1% 6% -3% -5% 5% -7% 4% Note - consumer price index (CPI) (with base 2012) from January 2014 Source: CEIC, Morgan Stanley Research, 30 th December 2017 * State Bank of India (SBI) 1-year deposit rates. For recent months we have used SBI special deposit rates on 555 days. Source: Company data, Morgan Stanley Research, 30 th December 2017 23

The Banking sector A two (or three) tier market Public Sector Banks severely strained (18.7% stressed assets, 9.6% tier 1 ratio) Private corporate banks strained (8.8% stressed assets, 14.6% tier 1 ratio) Premium private banks thriving (1.9% stressed assets, 14.7% tier 1 ratio) Important changes Reserve Bank of India (RBI) intervention, forcing Non-Performing Loan (NPL) recognition New Bankruptcy legislation: Fast tracking resolution Recapitalisation of Public Sector Banks (~US$ 32bn) Fund raising Source: J.P. Morgan Asset Management. As of January 2018. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 24

Bank Recapitalisation: India s TARP moment Planned capital infusion (~US$ 32bn) 9 3 32 21 24 Capital infusion through recap bonds Planned infusion by the govt Total infusion by the govt Planned capital raise from the market Total planned capital raise Utilisation of the capital infusion (~US$ 32bn) 16 9 32 17 26 Capital Total infusion planned through capital recap raise bonds Capital for growth Capital used for more for increasing provisioning Normalised provisions in in FY19E Total Total provisions provisioning required required provisioning Source: Credit Suisse, as of 31 st December 2017. TARP = Troubled Asset Relief Program 25

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Valuations have rerated MSCI India MSCI India 25 23 21 19 17 MSCI India Fwd PE 10Y Average 5Y Average 7 6 5 MSCI India PB 10Y Average 5Y Average 15 4 13 11 3 9 7 2 5 1 Source: RIMES, MSCI, IBES, Morgan Stanley Research, 30 th December 2017 Fwd PE = Forward Price to Earning, 10Y = 10 Years, 5Y = 5 Years Source: RIMES, MSCI, IBES, Morgan Stanley Research, 30 th December 2017 PB = Price to Book, 10Y = 10 Years, 5Y = 5 Years 26

Mid and Small caps are expensive MSCI India Small Cap Trailing PB MSCI India small cap relative to MSCI India Trailing PB 4.9 4.4 3.9 3.4 2.9 2.4 1.0 0.9 0.8 0.7 0.6 1.9 1.4 10-year average 0.5 10-year average 0.9 0.4 0.4 01 01 02 03 04 05 06 07 08 09 10 11 12 12 13 14 15 16 17 0.3 01 01 02 03 04 05 06 07 08 09 10 11 12 12 13 14 15 16 17 Source: RIMES, MSCI, Morgan Stanley Research, 30 th December 2017. PB = Price / Book Source: RIMES, MSCI, Morgan Stanley Research, 30 th December 2017, PB = Price / Book 27

Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Flows: Strong India Fund Flows Monthly flows into DMFs (3M average) 30,000 25,000 20,000 USD mn FII (Cash) DII Flows (Domestic MF + Insurance) FII Debt Flows 4500 3500 in USD mn 3M Average DMF Flows 15,000 2500 10,000 5,000 1500 0 500-5,000-500 -10,000-15,000-1500 Source: Securities and Exchange Board of India, Bombay Stock Exchange, Morgan Stanley Research. Data from 2000 to 2016, For C2017 flows data is as of 30 th December 2017 FII = Foreign Institutional Investor DII = Domestic Institutional Investor MF = Mutual Funds Source: Association of Mutual Funds in India, Morgan Stanley Research, latest data available as of 30 th December 2017 DMF = Domestic Mutual Funds 28

Sensex Return Scenarios using Rigour framework Scenarios 1 2 3 4 EPS Growth (%) 2018 12 15 18 15 2019 15 15 25 18 2020 12 18 25 20 Trend EPS Growth (%) For 3 years post 2020 10 15 20 25 Exit PE @ end of Year 6 (x) 13 17 18 20 Forex assumption (INR/US$) 63.9 58.5 63.9 63.9 5 year US$ Expected Return (%) 0 11.5 17.6 19.9 Source: J.P. Morgan Asset Management. As of 23 January 2018. EPS= Earnings per Share Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 29

Example: HDFC Bank 25 20 15 20 16.6 Previous Cycle Next FY06-08 FY18 Cycle GDP growth (real) 9.5 6.7 8 GDP growth (nominal) 15.4 9.5 13 System credit growth 29 7.5 19.5 Credit growth (x) 1.9 0.8 1.5 10 HDFCB credit growth 35 24 30 Credit growth (x) 1.2 3.2 1.5 5 PPOP change (bp)* 50 30 over FY08 0-5 0.1-3.5 Earnings Growth Valuation Dividend / Currency Expected Return ROA 1.4 1.9 2.2 doubles in PAT growth* (x) 2.4 2 ~3 years PAT absolute (Rs bn) 11.4 179 361 ROE 18.3 16.3 18 21.3% peak PE (M.cap/PAT) 28.3 14 * FY08 over FY05 Source: J.P. Morgan Asset Management, as of 23 rd January 2018 Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. The companies above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. 30

Example: Ultratech Cement 50 40 38.7 Previous Cycle FY08 FY18 Next Cycle Capacity 18.2 83.5 94.5 30 20 10 12.2 Utilisation (%) 83 67 87 peak was 87% Avg selling price (per tonne) 3,222 5,182 6,930 Sales (absolute RS bn) 55 291.3 569.4 Avg cost (per tonne) 2,222 4,108 4,998 Ebitda / tonne 1,000 1,074 1,932 continued to rise and is Rs5,125 in 1H2018 0-10 -0.2 Ebitda margin (%) 31.2 20.7 27.9 Ebitda (absolute) 17.2 60.4 158.7 PAT 10 24.4 98.2-20 ROE 45 9.5 18.9 56% peak in FY07-30 Earnings Growth -26.3 Valuation Dividend / Currency Expected Return PE 48.6 12.1 EV / Ebitda 22.1 8.4 EV / Sales 4.6 2.3 Source: J.P. Morgan Asset Management, as of 23 rd January 2018 Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. The companies above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. ROE = Return on Equity, PAT = Profit after Tax, PE = Price to Earnings Ratio, EV = Enterprise Value 31

Example: BHEL 18 16 14.8 15.8 Previous Cycle* FY11 Actual FY17/18 Next Cycle Market size (MW) 30,000 30,000 9,000 15,000 peak and then stable 14 Order inflows (MW) 17,000 15,000 5,000 9,000 peak and then stable 12 10 Utilisation (%) Realisation (Rs m per MW) 29 29 40 42.5 8 6 Revenue (Rs bn) 300 404 292 432 in year FY23 Ebitda margin (%) 19.5 20 3.3 9.9 within the forecast period Ebitda (Rs bn) 58 81 9.8 41.5 at the peak in FY23 4 PAT (Rs bn) 37 60 11.7 35.7 vs the previous high of Rs70 bn in FY12 2 0 0.5 0.5 Earnings Growth Valuation Dividend / Currency Expected Return ROE (%) 27.6 26 3.4 7.8 PER 6.4 32.9 10.7 EV / Sales EV / Ebitda 0.7 1.0 0.7 3.5 28.9 6.8 * Avg of FY09 and FY10 Source: J.P. Morgan Asset Management, as of 23rd January 2018 Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. The companies above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. ROE = Return on Equity, PAT = Profit after Tax, PE = Price to Earnings Ratio, EV = Enterprise Value 32

Outlook 2018 possible turbulence to absolute returns Cleansing process underway Clearing path to recovery Corporate health - better Compelling 3-5 year outlook Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication, constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. 33

J.P. Morgan Asset Management This is a marketing communication and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/jpmpdf/1320694304816.pdf. Investment is subject to documentation (Investment Disclosure Document, Key Features and Terms and Conditions), copies of which can be obtained free of charge from JPMorgan Asset Management (UK) Limited. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP. Material ID: 821c4750-e79a-11e6-a524-005056960c63 34