BSE Limited — Investor Presentation 2021

May 13, 2021

Date: May 13, 2021

To,

Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1 G Block, Bandra-Kurla Complex, Bandra (E) Mumbai – 400 051

Symbol: BSE ISIN: INE118H01025

Sub: Investor Presentation – May 2021

Dear Sir/Madam,

With reference to above captioned subject, please find attached herewith Investor presentation – May 2021.

The same will also be available on the website of the Company at www.bseindia.com.

This is for your information and record.

Thanking you, Yours faithfully, For BSE Ltd

Prajakta Powle Company Secretary and Compliance Officer Encl: a/a

BSE - INTERNAL

Disclaimer

This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations of the management of BSE Limited or any of its subsidiaries and associate companies ("BSE"). Actual results may vary significantly from the forward-looking statements contained in this presentations due to various risks and uncertainties. These risks and uncertainties include competitive landscape, stakeholders' preferences, effect of economic and political conditions in India and outside India, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the businesses of BSE as well as the ability to implement its strategy.

The information contained herein is as of the date referenced and BSE does not undertake any obligation to update these statements. BSE has obtained all market data and other information from sources believed to be reliable or are its internal estimates, although its accuracy or completeness cannot be guaranteed. Competition numbers are based on published results and management analysis. For purpose of comparison, following stock exchanges are considered – National Stock Exchange of India Limited, Metropolitan Stock Exchange of India Limited, NSE IFSC Limited and MF Utilities India Pvt Ltd. The presentation relating to financial performance herein is reclassified/regrouped based on Management estimates and may not directly correspond to published data. The numbers have also been rounded off in the interest of easier understanding. Prior period figures have been regrouped/reclassified wherever necessary. All information in this presentation has been prepared solely by the company and has not been independently verified by anyone else.

This presentation is for information purposes only and does not constitute an offer or recommendation to buy or sell any securities of BSE. Any action taken by you on the basis of the information contained herein is your responsibility alone and BSE or its directors or employees will not be liable in any manner for the consequences of such action taken by you.

The distribution of this document 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.

Index

Board Of Directors

Name Bio Justice Vikramajit Sen Chairman and Public Interest Director On BSE Board since 2016 ❖ Former Judge, Supreme Court of India ❖ Chairperson of the Broadcasting Content Complaints Council (BCCC) Shri Ashishkumar Chauhan Managing Director & CEO On BSE Board since 2012 Shri Sumit Bose Public Interest Director On BSE Board since 2016 ❖ Joined the Indian Administrative Service in 1976 and allotted to the Madhya Pradesh Cadre. ❖ Chairman, Expert Committee on working of Cantonment Boards set up by Ministry of Defence in January 2018 (work underway) Shri S. S. Mundra Public Interest Director On BSE Board since 2018 Shri Umakant Jayaram Public Interest Director On BSE Board since 2019 Shri David Wright Public Interest Director On BSE Board since 2018 ❖ Former General Secretary of IOSCO (2012-2016), former Deputy Director-General for Securities and Financial Markets at the EU Commission. ❖ From March 2000 – October 2010 he was first Director, then Deputy Director-General for securities and financial markets Name Bio

❖ Former Managing Director, Shree Mahila Sewa

❖ In the year 2001, financial literacy programme was introduced in Sewa Bank, first of its kind in

India – at initiative of Ms. Jayshree Vyas

Sahakari Bank, Ahmedabad

Sushri Jayshree Vyas Public Interest Director

On BSE Board since 2019

• ❖ Previously, Group Chief Information Officer, Reliance Industries Limited
• ❖ Chairperson of the Board of Governors of National Institute of Technology, Manipur
• ❖ Former Deputy Governor, Reserve Bank of India
• ❖ Former Chairman & Managing Director of Bank of Baroda

❖ 28 years Cross functional experience in Global Investment Banking, Finance Planning & Analysis, Risk Consulting / Business transformation

Shri T. C. Suseel Kumar Shareholder Director

On BSE Board since 2020

• ❖ Managing Director of Life Insurance Corporation of India since March 2019
• ❖ Played a key role in redefining the business proposition of the Corporation that earned the LIC 'Best Life Insurer Award' by many leading agencies during the year 19-20

4

Management Team

Name	Bio
Shri AshishkumarChauhanManaging Director &CEOWith BSE since 2009	◼B Tech in Mechanical Engineering from IIT Bombay and aPGDM from IIM Kolkata◼He is one of the founders of India's National StockExchange ("NSE") where he worked from 1992 to 2000. Heis best known as the father of modern financial derivativesin India due to his work at NSE◼Represents BSE as the Chairman on the Executive Board ofthe South Asian Federation of Exchanges◼Previously, Group Chief information officer, RelianceGroup
Shri Kersi TavadiaChief InformationOfficerWith BSE since 2010	◼Prior to joining BSE, employed with Log-in Utility andInvestSmartFinancial Services Limited◼31 years of experience in the area of ApplicationSystems/ IT Infrastructure development andmanagement, managing all aspects of IT operations inFinancial Services, Capital markets and manufacturingcompanies. He has played a leading role in transformingBSE into the fastest exchange in the country
Shri Sameer PatilChief Business OfficerWith BSE since 2015	◼He is instrumental in setting up and responsible forBusiness Development of INDIA INX at GIFT CITY IFSC◼He has about 22 years'of experience in financial sectorslike Commodities, Currency Derivatives, Indices etcandhas experience in Trading, Hedging Strategies, ProductDesigning and Business Development

Shri Nayan Mehta Chief Financial Officer

Name Bio

With BSE since 2012

Shri Neeraj Kulshrestha Chief Regulatory

With BSE since

Officer

2015

• ◼Having experience of over 29 years, he has earlier worked at Credit Analysis & Research Ltd. as Joint General Manager (Accounts), as CFO at Multi Commodity Exchange of India Limited. He has also worked at the National Stock Exchange ("NSE")
• ◼He represents BSE on the Boards of group and associate companies of BSE

Shri Girish Joshi Chief Trading Operations and Listing Sales

With BSE since 2010

• ◼Prior to BSE he was an Executive Director in Morgan Stanley India for 10 years. He was earlier with National Stock Exchange and has managed various functions like Trading Operations, Inspection and Investigation, Futures and Options Clearing and Trading. He was also the CEO of India Index Services Ltd. and Dotex International Ltd
• ◼28 year experience in Capital markets, which includes Securities Markets and General Insurance
• ◼He has worked with ICICI Bank Group for 10 years. At ICICI Bank Group he worked in various areas like ICICIDirect.com, Treasury Mid Office and in the area of Regulatory Reporting and Monitoring at CFO office of the Bank
• ◼He was also one of the earliest core team members who were involved in the set-up of National Stock Exchange ("NSE"). During 7 years at NSE he worked in Wholesale Debt Market and post trade functions

5

About BSE Business – Overview

Diversified Lines of Business

Index

Equity Cash - Performance

Transaction charges revised upwards w.e.f from March 1, 2021

Equity Derivatives - Performance

3,177,901

Last 5 quarters performance Last 6 month performance 2,189,247 2,228,275 2,466,515 2,918,586 2,958,336 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Average Daily Turnover (₹ million) 36,394 39,147 784,424 2,011,621 2,784,050 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Average Daily Turnover (₹ million)

Currency Derivatives – Performance

45 82 75 68 56 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Transaction Charges Income (₹ million) CAGR (2017-2021) 6%

Decrease in Currency Derivative Segment volumes due to –

• Restricted Bank timings for trading due to COVID-19
• Merger of some Nationalized Banks
• Third party Trading software issues post interoperability

Commodity Derivatives – Performance

Second Largest Commodity Derivatives Exchange in India

Steel Futures, Copper Futures & Copper Options on Goods contracts launched during Q4 FY2021

First exchange to launch Options in Goods contract in Gold Mini and Silver kg. Completed nine consecutive months of physical deliveries at exchange designated vaults

Launched world's only Almond Future Contracts on 1,47,000 kgs of Almond in Shell delivered on exchange

Launched BSE E-Agricultural Markets Ltd an electronic spot platform for agriculture commodities on December 11, 2020

BSE StAR Mutual Fund Platform – Introduction

BSE StAR Mutual Fund Plus – Value Drivers

BSE launches StAR MF Plus - a premium platform for Distributors and Advisors

Business – Segment Update BSE StAR Mutual Fund Platform – Performance, Reach & Coverage

BSE Star Mutual Fund Platform – Order Breakup

• Number of order received has grown by 63% in FY2021 as compared to FY2020

• StAR MF contributed ₹ 54,580 million as net equity inflow during April 2021 against industry inflow of ₹ 34,370 million
• FY 2021 StAR MF contributed ₹ 224,440 million as net equity inflow against the negative industry outflow of ₹ 259,650 million

Services to Corporates - Performance

India International Exchange IFSC – Introduction

84.14%

DCB Bank Limited Individual Shareholders

8.61%

BSE Limited ICICI Bank

	•Equity Index Derivatives:	Sensex and India 50
	•Indian Stock Futures :	Larsen & Toubro Limited and State Bank of India Limited	131 stocks including Reliance Industries Limited, HDFC Bank Limited, Axis Bank Limited, InfosysLimited, Tata Steel Limited, Maruti Suzuki India Limited, Tata Motors Limited, ICICI Bank Limited,
Asset Classes &Contracts	•Commodity Futures :		Gold, Gold KG, Silver, Copper, Aluminium, Lead, Nickel, Zinc, BRENT Crude Oil, QGold, QSilver
	•Commodity Options :	Gold
	•Currency Derivatives:	INR USD, USD INR, EUR USD, GBP USD and JPY USD
	•Debt Securities:	Masala Bonds, Foreign Currency Denominated Bonds
	•Global Depository Receipts
	•Infrastructure Investment Trusts
	•Real Estate Investment Trusts
Trading Hours	•ExchangeDailyTradingHours•22.00Hours•04:30:00hoursto17:00:00hours	and17:00:01hoursto02:30:00	hours(IndianStandardTime)
Global Access	•BSE'sIndiaINXlaunchesGlobalEurope,Eurex&EuronextN.V.	Accesswithconnectivityto	CMEGroupExchanges,LME,ICEUS&
India INX Shareholding Structure*4.36%2.89%		India ICC Shareholding Structure*7.52%4.93%

78.88%

8.67%

BSE Limited ICICI Bank

DCB Bank Limited Individual Shareholders

On May 08, 2020 Hon'ble Finance Minister Smt. Nirmala Sitharaman virtually inaugurated Rupee Dollar Derivatives contracts open for trading on India INX.

Business – Segment Update India International Exchange IFSC – Performance

100%@ of MTN established in IFSC are established with INDIA INX

*Data as on March 2021

99%# of the bonds listed in IFSC are listed on INDIA INX

Average daily turnover of Rupee Derivative contracts in April 2021 was USD 10.24 million

India International Exchange IFSC

BSE Ebix Insurance Broking

BSE Ebix Insurance Broking

Introduction of "Corona Kawach" product helped us to reach out to larger crowd and get maximum policies in Q2 FY2021

22

Business

Marketshare

85%

Market leadership in Blue Ocean Businesses Established leader in Listing related Business. Good marketshare in other businesses except Equity Cash

All Marketshare for Q4 FY21

1 Marketshare in Mutual Fund StAR Platform based on the value of purchase / redemption orders received during Q4 FY21

2 Marketshare in SME Segment represents number of companies listed in SME segment as on March 31, 2021

3 As on March 31, 2021

Index

Key Growth Drivers & Other Initiatives

e-commerce initiatives successfully

Key Growth Drivers - 1

International Exchange

• Constitution of the IFSC authority and its Board to facilitate growth of GIFT city as an international financial hub as well as growth of international exchange therein.
• Investors friendly tax regime
• Listing and Trading platform available for booking of products in Equity Derivatives, Currency Derivatives, Commodity Derivatives and Debt Securities

Equity & Equity Derivatives

• Inter-operability alongwith push towards best price execution likely to increase liquidity on BSE's electronic trading platform over time.
• BSE's initiative to introduce Weekly Options has received good response from market participants

Mutual Fund

• Savings in cost and convenience
• Strong network of intermediaries
• Good network connectivity across country
• Increasing household incomes
• Increasing financial savings
• Partnered with LIC Mutual Fund for e-KYC services
• Launched StAR MF Plus a premium platform for distributors and advisors

E-platform Services

• Expansion of services from Current platforms for providing e-platform services like bookbuilding for IPO, Offer to Buy, Offer for Sell, New Bond platform, etc.
• Launched an electronic spot platform for agricultural commodities - "BSE E-Agricultural Markets Ltd. (BEAM)

Key Growth Drivers & Other Initiatives

Key Growth Drivers - 2

• Already commenced insurance broking in Motor, Health and Life Insurance

• Continuous growth of Point of Sales

• Product diversification

• Software integration with various insurance companies

• Pranurja Solutions Limited incorporated to set up a power exchange jointly with Power Trading Corporation and ICICI Bank

• CERC granted registration to establish and operate a power exchange on May, 12, 2021

Insurance Broking Power Exchange Commodity Derivatives BSE Bond Platform

• Commodity futures contracts includes Gold, Silver, Copper, Oman Crude Oil, Guar Gum, Guar Seed, Cotton, Almond, Brent Crude Oil, Aluminium, Zinc, Turmeric

• Launch of Commodity Options in GoldM and SilverKG contracts in June 2020

• Launched Steel Futures, Copper Futures & Copper Options on Goods contracts during Q4 FY2021

• Over ₹ 780 billion of debt was raised on BSE BOND platform through 146 issues in Q4 FY21

• Over ₹ 3,705 billion of debt was raised on BSE BOND platform through 755 issues with 52% market share during the period FY2021

Index

Integrated Business Model

• Multiple contact points with members and market participants provides the ability to generate revenue from multiple levels of the business

	Primary		Trading	Clearing & Settlement	Distribution
1	Transaction Charges	To an extent linked to◼Market Activity	◼	Linked to market activity levels and household savings and investments
2	Treasury Income on Clearing andSettlement Funds	Linked to Market◼Activity to an Extent	◼members	Linked to interest rates and, to an extent, market activity since that would lead to more margin being deposited by
3	Other Securities Services	Recurring◼	◼	Primarily consists of charges recovered from members for network connectivity
4	Services to Corporates	Recurring◼	Mostly derived from listing income that is not impacted by market activity◼Dependent on number of listed entities and hence is a recurring revenue stream◼Potential for increase if amount charged is increased◼
5	Data Dissemination Fees	Recurring◼	◼◼	Impacted primarily due to level of subscriptions and revision in pricing policiesContributes only 4-5% in India compared to 10-25% in developed markets
6	Income From Investments andDeposits	Recurring◼	Linked to investment yields◼
7	Other Income	Recurring◼	◼	Mostly derived from rent and training institute etc., which are stable sources of income

Consolidated Profit & Loss

						(₹ in million)
Sr. No.	Particulars	Mar'21Quarter	Dec'20Quarter	Mar'20Quarter	FY2020-21	FY2019-20
1.	Transaction Charges	465	317	250	1,389	1,131
2.	Treasury Income on Clearing and Settlement Funds	88	69	57	301	229
3.	Other Securities Services	159	128	133	504	330
4.	Securities Services (1+2+3)	712	514	440	2,194	1,690
5.	Services To Corporates	665	560	569	2,258	2,122
6.	Other Operating Income	145	132	187	562	693
7.	Revenue From Operations (4+5+6)	1,522	1,206	1,196	5,014	4,505
8.	Income From Investments and Deposits	131	371	305	1,291	1,587
9.	Other Income	47	45	57	242	208
10.	Total Income (7+8+9)	1,700	1,622	1,558	6,547	6,300
11.	Employee Expenses	373	375	376	1,487	1,512
12.	Technology Cost & Technology Program	199	264	294	948	1,176
13.	Admin & Other Expenses	489	448	506	1,854	1,822
14.	Total Operating Expenses (11+12+13)	1,061	1,087	1,176	4,289	4,510

Financial Highlights & Investor Information

Consolidated Profit & Loss (cont'd)

Sr. No.	Particulars	Mar'21Quarter	Dec'20Quarter	Mar'20Quarter	FY2020-21	FY2019-20
15.	EBITDA (10-14)	639	535	382	2,258	1,790
16.	EBITDA Margin (15/10 in %)	38%	33%	25%	34%	28%
17.	Non-operating Expenses*	269	275	385	1,019	1,022
18.	Profit Before Tax, Exceptional Items And Share Of Associates(15-17)	370	260	-3	1,239	768
19.	Exceptional Items	-	-	-	-145	320
20.	Profit From Associates	113	117	66	432	267
21.	TaxExpenses	165	62	82	109	149
22.	Net Profit (18+19+20-21)	318	315	-19	1,417	1,206
23.	Net Profit Margin (22/10 in %)	19%	19%	-1%	22%	19%
24.	Net Profit Attributable To Shareholders	326	324	-13	1,449	1,223

* Non Operating Expenses includes Depreciation, Provision for diminution in value of investments, Finance Cost, Provision for additional contribution to ISF & IPF and LES.

Standalone Profit & Loss

Sr. No.	Particulars	Mar'21Quarter	Dec'20Quarter	Mar'20Quarter	FY2020-21	FY2019-20
1.	Securities Services	544	376	344	1,650	1,352
2.	Services To Corporates	664	559	569	2,255	2,119
3.	Data Dissemination Fees	84	84	83	334	315
4.	Revenue From Operations (1+2+3)	1,292	1,019	996	4,239	3,786
5.	Income From Investments And Deposits	75	309	232	1,136	1,396
6.	Other Income	52	56	78	276	239
7.	Total Income (4+5+6)	1,419	1,384	1,306	5,651	5,421
8.	Employee Expenses	218	222	232	891	939
9.	Technology Cost & Technology Program	254	320	321	1,148	1,309
10.	Admin & Other Expenses	448	387	430	1,601	1,576
11.	Total Operating Expenses (8+9+10)	920	929	983	3,640	3,824

Financial Highlights & Investor Information

Standalone Profit & Loss (cont'd)

Sr. No.	Particulars	Mar'21Quarter	Dec'20Quarter	Mar'20Quarter	FY2020-21	FY2019-20
12.	EBITDA (7-11)	499	455	323	2,011	1,597
13.	EBITDA Margin (12/7 in %)	35%	33%	25%	36%	29%
14.	Non-operating Expenses*	191	204	318	705	761
15.	Profit Before Exceptional Item and Tax (12-14)	308	251	5	1,306	836
16.	Exceptional Item	-	-	-	-146	916
17.	TaxExpenses	159	39	-11	187	15
18.	Net Profit After Tax (15+16-17)	149	212	16	973	1,737
19.	Net Profit Margin (18/7 in %)	11%	15%	1%	17%	32%
20.	NPAT (Excluding Gain on CDSL Stake Sale)	149	212	16	973	821
21.	Net Profit Margin (Excluding Gain on CDSL Stake Sale) (20/7 in %)	11%	15%	1%	17%	15%

* Non Operating Expenses includes Depreciation, Provision for diminution in value of investments, Finance Cost, Provision for additional contribution to ISF & IPF and LES.

Financial Overview

Consolidated Earnings per share (₹) [Continuing operations] Standalone Earnings per share (₹)

34 * Net profit from Continuing operation and excluding Gain from CDSL Stake Sale

Financial Highlights & Investor Information

Financial Overview (cont'd)

28 36 30 93% 95% 97% 95% 99% Dividend per share (₹) & Pay-out Ratio*#*

#Dividend pay-out ratio is calculated based on Standalone Profit excluding gain on sale of strategic investment

Standalone Net Worth (₹ million)

	Dividend pay-out and Buyback Details
Financial Year	Dividend#(Including DDT)(₹ million)	Buyback (Includingtransactions cost & Tax)(₹ million)	Total(₹ million)
2015-16	937	-	937
2016-17	765	-	765
2017-18	1,733	450	2,183
2018-19	2,255	1,230	3,485
2019-20	1,584	4,762	6,346
2020-21	779	-	779
2021-22	962	-	962
Total	9,015	6,442	15,457

35 #Dividend Distribution Tax

Business

Shareholding Pattern

SOME KEY SHAREHOLDERS (As on March 31, 2021)

Life Insurance Corporation of India	5.61%
Siddharth Balachandran	2.98%
ZerodhaBroking	2.16%
Acacia Banyan Partners Limited	1.74%
Akshay VasantlalMehta	1.69%
Jupiter India Fund	1.55%
Acacia Conservation Fund, LP	1.37%
MSPL Limited	1.33%
S Gopalakrishnan	1.18%
Morgan Stanley Asia (Singapore) PTE –ODI	1.08%

MARKET DATA

Market Capitalization (₹ Mn)	25,713
Price (₹)	571.1
No. of Shares Outstanding	4,50,24,297
Face Value (₹)	2.00
Avg. QtrlyTrading Volume (₹ Mn)	219.48
Avg. QtrlyTrading Volume (Mn shares)	0.36
52 week High-Low (₹)	658.00 –288.90

Paid up Capital ₹ 90.04 million | Face Value per share ₹ 2/- each Market data as at March 31, 2021

THANK YOU

INVESTOR RELATIONS CONTACT :

Yogesh Joshi Head – Investor Relations +91 22 2272 8810 bse.ir@bseindia.com