Survey Carried out by Penn Schoen Berland aims to better understand the internal and external factors that drive valuation & financial competitiveness & also help companies become relevant and compelling to Financial Influentials. As per Ashwani Singla, Corporate Image is a key differentiator & by focusing on the right fundamentals and having good investor relations will make your Company financially competitive.

1. Contact us:
Ashwani Singla, Shefali Khanna, Penn Schoen Berland, South Asia
Managing Director Director, Marketing 603, Unitech CyberPark,
& Chief Executive skhanna@ps-b.com Sector 39, Gurgaon
asingla@ps-b.com M: +971 111 8615 Haryana, India
M: +98 1107 5843 www.psbresearch.in
Thanks to our partners
Winning Strategies for
Financial Competitiveness

2. Penn Schoen Berland’s survey
Why & How Of The Poll
among Financial InfluentialsTM
Objective
Aims to better understand the internal and external factors that
• To help companies become
drive valuation & financial competitiveness. relevant and compelling to
Financial Influentials Methodology
The analysis of our online survey among 101 years in the financial world and commanding
financial Bizfluentials from Equity Research an influence of $10 billion supports a positive
• An online survey conducted
Houses, Private Equity Funds, Investment sentiment toward the economy, with more than
between August 8 - 30, 2012
Banks, Mutual Funds, and Portfolio Management 75% of financial players believing that the market is
in Mumbai
Companies with a minimum experience of 8 headed in the right direction. • PSB’s proprietary C3 (C-Cube)
framework was used for
drawing insights
Strategic Investors 35
(PE Funds / IBankers)
above 15 yrs yrs
Financial Investors 42
above 15
(MF / Portfolio Managers)
Endorsers 24
(Brokerage Houses / CRAs)
N = 101
10-15 yrs yrs
10-15
Years of work experience
2
Years of work experience
8-10 8-10 yrs
yrs
©Penn, schoen & berland associates, llc.
*Disclaimer: The information contained within is the property of Penn Schoen Berland & Associates. No part of this document may be copied or reproduced
without the written consent of Penn Schoen Berland & Associates. Failure to do so may invite legal action as appropriate.

3. Understanding the forces that drive The Investment Climate Relies On
winning strategies Three Critical Questions
Competitiveness is best described in the words of Charles Darwin,
1 How are we feeling
Portfolio Management
Portfolio Management
who said, “In the struggle for survival, the fittest win out at the expense
Credit Rating Agency
Credit Rating Agency
about the economy?
Credit Rating Agency
of their rivals because they succeed in adapting themselves best to
Portfolio Management
their environment.”
Brokerage House
Private Equity
Brokerage House
Investors and endorsers
Brokerage House
Even in the marketplace, it’s not the strongest who win, but ones most
responsive and adaptable to change. Today, for business leaders and
Private Equity
feel positive about
Private Equity
CXOs, it is a constant struggle to adapt to a fast-changing business
Contact us:
Mutual Fund
environment. It’s not just about making the right choices for themselves
Mutual Fund
Penn Schoen Berland, South Asia
603, Unitech CyberPark
but for all their stakeholders – employees, business partners, clients,
the direction of Indian Competitiveness drivers
customers, policy makers, shareholders and investors.
economy.
Sector 39, Gurgaon
Mutual Fund
of the financial markets
I Bank
Ashwani Singla,
Haryana, India
Managing Director & Chief Executive,
I Bank
www.psbresearch.in Berland, South Asia
Penn Schoen
2012
I Bank
Even as the economy slows down, investors and
endorsers feel that India’s economy will remain
Thanks to our partners: resilient, irrespective of the policy issues. Four-fifth
Ashwani Singla, of the Bizfluentials who participated in our survey
The key questions that businesses
Managing Director
& Chief Executive
said that they believe the Indian economy is on the
right track.
Strategic
Investor
need to understand for financial
asingla@ps-b.com 74% of strategic investors believe that Indian
90%
53%
91%
75%
79%
80%
M: +98 1107 5843
competitiveness are Strategic economy is in the right direction, 83% of financial Financial
Investor investors and 79% of endorsers also feel positively Investor
Endorser Strategic direction of theEndorser
about the
Financial
economy.
Shefali Khanna, Investor
1. How do financial investors choose the right business
Director, Marketing
Investor
91% of portfolio managers, 79% of brokerage
Endorser
houses and 75% of Bizfluentials working for mutual
to invest in?
skhanna@ps-b.com Financial
Investor funds saw the Indian economy moving in the right
M: +971 111 8615
direction despite all the clutter, making financial
2. How can one understand these choices? investors and endorsers a much more optimistic
group than strategic investors.
3
3. What does one need to do in order to gain a Among the key concerns raised by strategic and
financial investors and endorsers, were scams,
competitive edge? poor governance and tardy policy implementation.
Thanks to our partners:
We try to find the main factors that will drive strategies to make companies more relevant and compelling
to their investors.
©Penn, schoen & berland associates, llc.

4. 24 months
2 Will the market look Markets to move up in Growth No.
up in the near future? 12-36 months Up to +5% 09
+5% to +10% 46
According to our study, the market outlook remains Despite the optimism about the economy, it was
+10% to +15% 26
positive in the 12-36 month horizon. Aligned to clear that when it came to stock picks, most would
this, is the investors’ preferred investment horizon study both past track record and closely view the More than +15% 11
of 1-5 years, even as scams and poor governance future potential of a company before investing.
-5% 04
continue to be top of mind concerns. 7 out of 10 participants said that they believed in
51% of the participants believed that the stock balance between past and the future before taking -5% to -10% 03
market would witness a ~5% growth over a 12- a call. However, 20% were willing to pay a premium 10% to -15% 00
36 months window, while only 2% said that the on the perceived future of a company and 13%
markets would see a 15% jump over 12 months. said they still rely entirely on past track record as More than -15% 01
One-fifth of the Bizfluentials surveyed feel that this perceived in the public.
might happen, but over the next 36 months.
12 months 36 months
Growth No. Growth No.
Up to +5% 51 Up to +5% 03
+5% to +10% 15 +5% to +10% 21
+10% to +15% 15 +10% to +15% 49
More than +15% 02 More than +15% 20
-5% 11 -5% 01
-5% to -10% 04 -5% to -10% 02
6
10% to -15% 02 10% to -15% 02
More than -15% 00 More than -15% 02
©Penn, schoen & berland associates, llc.

5. Previous Decade Next Decade
3 Which are the Pharamaceuticals made the largest leap up the
ranks as the next big influencer set to make a huge
Infrastructure 1 Real Estate
Sectors that will impact on the market. While Bizfluentials ranked it Real Estate 2 Infrastructure
11th most important sector in the last decade, this
drive the Market? year Pharma is among the Top 5 sectors that will Banking, Financial Services
and Insurance
3 Energy & Resources –
Oil & Gas / Power / Electricity
play a major role in the next ten years.
Pharmaceuticals all set Infrastructure, Real Estate, BFSI, and Energy Energy & Resources – 4 Banking, Financial Services
Contact us: Oil & Gas / Power / Electricity and Insurance
shaped the last decade and will continue to be the
to emerge as the next
Penn Schoen Berland, South Asia key sectors for growth over the next. High Tech,
603, Unitech CyberPark Telecommunication Infrastructure 5
Competitiveness drivers
Pharma/Biotech
big influencer
ICTS, Capital Goods will remain among the Top 10
Sector 39, Gurgaon influential sectors.
Technology & IT services 6 Telecommunication financial markets
of the Infrastructure
Haryana, India
www.psbresearch.in
Steel/Metals/Alloys 7 Technology & IT services 2012
Telecommunication Services 8 Steel/Metals/Alloys
Top sectors by Investors
Thanks to our partners:
Ashwani Singla, Auto 9 Telecommunication Services
Managing Director
Strategic
& Chief Executive Investors Financial Investors Endosers Capital Goods/Engineering 10 Auto
asingla@ps-b.com
1 Real
M: +98 1107 5843 Estate 1 Real Estate 1 Energy & Pharma/Biotech 11 Infrastructure Related
Resources
2 BFSI 2 Infrastructure Consumer Processed Goods 12 Capital Goods/Engineering
2 Infrastructure
Shefali Khanna,
3 Infrastructure 3 Pharma & Media & Entertainment 13 Consumer Processed Goods
Director, Marketing Biotechnology 3 Real Estate
skhanna@ps-b.com
4 Energy & Travel & Hospitality 14 Travel & Hospitality
Resources
M: +971 111 8615 4 Energy & 4 Pharma &
Resources Biotechnology
Infrastructure Related 15 Education
5 Pharma &
Biotechnology 5 BFSI 5 Technology
7 & IT Education 16 Media & Entertainment
Aviation 17 Aviation
Thanks to our partners:
©Penn, schoen & berland associates, llc.

6. C3 Gold Standard of Corporate Equity
Visibility
To identify what drives Authenticity
competitiveness
Distinctiveness
The C3 framework is used to strategically manage corporate image, also
Character
referred to as corporate reputation or corporate equity. This dynamic
Consistency
framework helps board members and CEOs decode and monitor the
stakeholders that have maximum impact on the company’s image. It helps Market
decision makers focus on what the company needs to do & say in order to Performance
persuade stakeholders to take action that gives companies competitive edge.
Financial
Performance
The C3 framework looks at three ‘Dimensions’ of corporate equity:
Character, Capability & Communication. Each of these Dimensions comprises Communication Talent
of ‘Attributes’ that define a company’s equity and each Attribute has a set of
Development
‘Strategic Actions’ that impact its equity. C3 not only establishes the correlation
Competitiveness
between these actions and the most important stakeholder expectations, it
also benchmarks a company’s relative standing vis-a-vis its peers, thereby Customer
providing a clear direction on what it needs to do in order to stand apart from Citizenship
its competitors.
Employee
We have used the C3 framework to generate insights into what the financial Capability Citizenship
influentials consider before they invest or make a recommendation to invest.
Business Practices
& Ethics
Corporate
Responsibility 10
Transparency &
Governance
©Penn, schoen & berland associates, llc.

7. Competitiveness is driven by Top factors for Financial Competitiveness
fundamentals Factors
1 Market
Traditionally, fundamental financial analysis is about determining the value of a stock by looking at the
Performance
variables that are directly related to the company, making stock-related and financial parameters more (Capability)
important for hedging risks than as a crucial differentiator.
The underlying message from the financial influentials who participated in our survey defined what financial
competitiveness means for today’s businesses.
2 Corporate
Contact us: Image
(Character &
Penn Schoen Berland, South Asia
Communication)
603, Unitech CyberPark Competitiveness drivers
Sector 39, Gurgaon
of the financial markets
Financial competitiveness is about
Haryana, India
www.psbresearch.in
3 External
Risks 2012
focussing on the right fundamentals and (Macroeconomic
Factors)
getting the fundamentals right
Thanks to our partners:
Ashwani Singla,
Managing Director
• The fundamental Capability of the company in terms of its management team, business practices,
& Chief Executive
4 Financial
and financial stability
asingla@ps-b.com
Performance
(Capability )
M: +98 1107The fundamental Character of a company in terms of its corporate vision for the future, transparency
• 5843
on business associates, employees and governance
• The fundamental Communication of its clear vision for the future and how successfully the company
communicates its character and capability to its stakeholders
Shefali Khanna,
Director, Marketing
Often, in looking at the minutiae, the bigger picture consisting macro-economic factors and company
skhanna@ps-b.com
M: +971image in the minds of stakeholders can be overlooked. Several factors impact value, but Bizfluentials feel
111 8615
that it’s the external factors that exert most influence on company equity.
11 Efficient use of resources and macroeconomic factors top the list for leaders in the financial world, but they
must also be careful about what drives investors. Our survey showed a clear distinction within preferences
of different kinds of investors within the Top 5 drivers.
Thanks to our partners:
©Penn, schoen & berland associates, llc.

8. Generally not
controversial
Leading brand/
Is a trend setter s in portfolio
Shows a clear vision of Invest in building
Global the future of the company safe & healthy
Competitiveness Fierce but fair and the industry work environment
Ability to balance
competitor
both short term
Build a
Market 1 Market performance Corporate Image
2strong
and long term Lower than industry
goals Establishes high average attrition
Loyal
Character corporate governance standards
rates
Leading Create competitiveness toCustomer
gain The ability to manage Generally in the
Makes full disclosures, Financial investors, with their lesser interest
Track record of base
a winning edge.
especially when things
ucts Market Share
resolving customer risks and interestof minority
go wrong build athe
Protect
clean news for right drivers, prefer to rely on capable
in business
reasons
management teams, positive news coverage and
image is rewarded by financial indicators, such as debt-equity ratio, cash
issues quickly and
shareholders
ble & dynamic efficiently Edge
the market. So, focus on reserves and earnings per share. Being closer to
agement team
Among the various drivers that affect Market
Fair & progressive
Performance, strategic investors focus on global Claims always
governance and engage bymarket movements, financial investors also rely on
employer
competitiveness and market share while financial backed proof Disassociate shareholder
Unique/Niche
Introduces new
investors value a capable management team higher
products & services
business
Critical
with stakeholders to market indicators like share price/volume volatility
interest from management
and share group.
than endorsers, who look at the future potential of the
ahead of others build the right image.
Invests in Local
Communities
business as a key valuation parameter. Endorsers look for the management’s ability to hold
Focus on governanceexpectationscustomers
Strategic investors are looking for a clear vision and tranperanc
views that are not just determined by
Create Differentiation for a winning Edge
Important and shareholders – their revolving
Inorganic Focus on governance and long and short term goals, is
for the future and expect full disclosures from the
company, even during difficult times. Strategic by the market
tranperancy
rewarded around a balance of disassociated shareholder
Create Differentiation for a winning Edge growth
rewarded by the market
Company leadership
transparency and
investors also care about the larger role played by visible at
is
interest from that of management.
important public
the company, be it in establishing high governance
platforms
standards or corporate social responsibility.
Generally not
controversial
Focus on Leadingportfolio
governance and tranperancy is
brand/ Ability to Managenot
Generally
Risks & Build a Clea
ge Is a trend setter
Is a trend setter
s in
Leading brand/
rewarded portfoliothe market
s in by
controversial
is Rewarded by the Market
Shows a clear vision of Invest in building
Global Shows a clear visionfuture of the company
the of Invest in building safe & healthy
Competitiveness
Global Generally not
Fierce but fair the future of the and the industry safe & healthy
company work environment
Competitiveness Ability to balance Fierce but fair
controversial and the industry work environment
competitor
Ability toboth short term
balance
competitor Build a Lower than in
both short term term
and long Build a strong
Lead the Market
Lead the Market
and long term goals
goals a clear vision of strong
Establishes high
Establishescorporate governance
high
Lower than industry average attrit
average attrition rates
Shows
the future of the company
Invest in building
safe & healthy
Loyal
Character Makes full disclosures,
Character corporate governance when thingsstandards rates
and the industry work environment
Loyal standards
especially
Leading Customer Makes full disclosures, go wrong Claims always
Generally in the
Reliable and of Leading Customer Makes full disclosures, Generally in thebacked by proof
Reliable and of
high quality products Market ShareShare
Market Build a record of
Track base especially when things Protect the right news for right
go wrong Strengthen
Track record of base Lower than industry especially when things Protect the news for
high quality products resolving customer Establishes high
strong
resolving customer average attrition go wrong interestof minority reasons
reasons
issues issues quickly and
Character corporate governance
quickly and rates Communication
interestof minority
shareholders
efficiently standards shareholders
Capable & dynamic
Capable & dynamic efficiently Edge Edge Shows a clear vision
management team Makes full disclosures, Generally in the of the future of the
management team especially when things Fair & progressive & company and the industry
Fair progressive
Protect the news for right
go wrong interestof minority reasons employer employer Claims always Claims always
shareholders Unique/Niche Generally in the backed by proof backed by proof
Unique/Niche Disassociate shareho
Disassociate shareholder
Edge
Introduces new new
Introduces
Edge news for right reasons 14
interest from management from manage
interest
business business
Fair & progressive Critical Critical
products & services
products & services employer Claims always Generally
ahead of others others
ahead of backed by proof Invests in Local Invests in Local not controversial
Disassociate shareholder Communities
interest from management Communities
Critical Critical
Invests in Local
Communities Important Company leadership is visible
Important
at important public platforms
Inorganic
Inorganic
Important growth Important Company leadership
growth Company leadership
is visible at
Company leadership important public is visible at
is visible at platforms important public
©Penn, schoen & berland associates, llc.
important public platforms
platforms