Contents. Aditya Birla Nuvo A Snapshot Segment Financials Our businesses : Financial Services 18. Fashion & Lifestyle 27.

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2 Contents Aditya Birla Nuvo A Snapshot 3 12 Segment Financials Our businesses : Financial Services 18 Fashion & Lifestyle 27 Telecom 37 Divisions 40 Annexure

3 Strong parentage of the Aditya Birla Group A USD 40 billion Indian multinational, Aditya Birla Group is in the league of fortune 500 Operating in 36 countries across 6 continents deriving over 50% of revenue from overseas operations Among the largest and the most reputed business houses in India Flagship listed companies: Aditya Birla Nuvo (Conglomerate), Grasim & Ultratech (VSF & Cement), Hindalco - Incl. Novelis (Aluminium & Copper), Idea Cellular (Telecom) Ranked 4 th in global top companies for leaders & 1 st in Asia Pacific (Source: Aon Hewitt, Fortune Magazine & RBL ) Ranked 1 st in Nielsen s Corporate Image Monitor Occupying pole position for 3 consecutive years Anchored by 120,000 employees from 42 nationalities. Trusted by 1.2 Mn shareholders & 160 Mn customers Global positioning Largest Indian MNC with manufacturing operations in the US Aluminium VSF World s largest aluminium rolling unit World s largest manufacturer Carbon Black World s largest in terms of capacity Cement Among top 10 manufacturers in the world Leadership Position Top 3 Top 5 In India Aluminium, Cement, Carbon Black, VSF, VFY, Branded Apparels, Copper, Chlor-alkali, Insulators (in terms of capacity/production/sales) Telecom (in terms of wireless revenue market share) Life Insurance (in private sector in terms of AUM) Asset Management (in terms of average AUM) Our Values Integrity, Commitment, Passion, Seamlessness, Speed 3

4 Aditya Birla Nuvo : Vision & Mission Vision To be a premium conglomerate building leadership in businesses and creating value for all the stakeholders Mission Investing in the promising sectors Building leadership in businesses A platform to drive synergy of resources Kumar Mangalam Birla Chairman Delivering best value to all the stakeholders To be a responsible corporate citizen 4

5 Aditya Birla Nuvo : Progressing in line with its vision Investing in the Promising Sectors Entered Fashion business through acquisition of Madura Forayed in Life Insurance business through JV with Sun Life, Canada Entry into IT-ITeS Business Enhanced strategic stake in Telecom through Idea Expanded Financial Services portfolio by merger of AMC & NBFC and entry in broking, private equity etc. Augmented Fashion offerings through acquisition of Pantaloons, a top 3 big box apparel retailer / Created India s largest online money management platform MyUniverse Added New Superfine Yarn capacity in Rayon Expanded Linen Yarn and Fabric Capacities Commenced Housing Finance operations Applied for Payments bank license in a 51:49 stake with Idea Signed MoU with MMI Holdings to enter health insurance sector in India Invested USD 2 billion over past 15 years to fund the growth of its businesses leading to transformation from a manufacturing company to a premium conglomerate 5

6 Building Leadership Position across its businesses Aditya Birla Financial Services Market Positioning Among the top 5 fund managers in India AUM USD 27.5 billion 1 (` 164,995 Crore : 35% y-o-y) NBFC Lending Book USD 3 billion (` 17,550 Crore : 52% y-o-y) Diversified Portfolio Having 10 lines of businesses Revenue USD 1.3 billion (` 7,926 Crore : 19% y-o-y) Earnings before Tax USD 141 million (` 849 Crore : 17% y-o-y) Fashion & Lifestyle (Madura & Pantaloons) Market Positioning #1 branded menswear & womenswear player in India Retail Network 1869 Stores (4.8 mn sq. ft.) Largest in fashion space Scale Selling two branded apparels every second Customers Base A large 10.8 million loyalty customers base Revenue USD 910 million (` 5,450 Crore : 15% y-o-y) EBITDA USD 89 million (` 532 Crore : 32% y-o-y) Note 1 : Includes AUM of Life Insurance, Private Equity and quarterly AAUM of Asset Management business 6

7 Building Leadership Position across its businesses Telecom (Idea Cellular) Market Positioning 6 th largest 1 in the world 3 rd largest 2 in India Outperforming Industry Revenue share grew y-o-y from 16.1% to 17.5% 2 Strong Balance sheet Net Debt to EBITDA : 1.31x (Standalone) Revenue USD 5.3 billion (` 31,527 Crore : 19% y-o-y) EBITDA USD 1.9 billion (` 11,281 Crore : 32% y-o-y ) Cash profit (post tax) USD 1.4 billion (` 8,482 Crore : 32% y-o-y ) Divisions (Jaya Shree, Indo-Gulf fertilisers, Indian Rayon, Aditya Birla Insulators) Market Positioning Leading manufacturer of Linen, Urea, VFY & Insulators in India Outlook Expanding linen yarn capacity to tap sector growth Long term anti-dumping duty to benefit Insulators sector Gas pooling policy to benefit urea sector Revenue USD 901 million (` 5,405 Crore : 9% y-o-y) EBITDA USD 102 million (` 615 Crore : 11% y-o-y) Free Cash Flow (pre-tax) USD 52 million (` 314 Crore : 36% y-o-y) Note 1 : In terms of subscribers and based on operations in a single country (Source : GSMA, Dec 14) Note 2 : Based on gross revenue for UAS & Mobile licenses only for Oct-Dec14, as released by TRAI 7

8 A platform to drive synergy of resources Standalone Net Debt Standalone Ratios ( ` Crore) Net Debt/annualised EBITDA 5.8 Net Debt/Equity Mar'09 Mar'12 Mar'15 O/s Fertilisers Subsidy Mar'09 Mar'12 Mar'15 Standalone balance sheet has been the growth engine for ABNL & a platform to drive synergy of capital resource Invested ~USD 1 billion to fund the growth capital requirements of its businesses over past six years Healthy financial position : Net Debt to EBITDA at 3x & Net Debt to Equity at 0.42x as on 31 st Mar 15 Contributed by strong cash flow from operations, dividend income, proceeds from divestment of sub-scale businesses and capital support from the promoters Received dividend of ` 89 Cr. in FY15 (~` 600 Cr. over past 6 years) 8

9 Delivering best value to all the stakeholders Exit from sub scale businesses to achieve greater focus on other businesses Divestment of Carbon Black business Divestment of IT-ITeS business Effective Date 1 st April 2013 Effective Date 9 th May 2014 Enterprise Value USD 240 million Enterprise Value USD 260 million Supported ABNL s growth plans & strengthened balance sheet Greater focus on core businesses Consolidation of Branded Apparels Businesses to unlock value for the shareholders # 1 Menswear player # 1 Womenswear player Aditya Birla Fashion & Retail Ltd. Creating India s largest pure-play fashion & lifestyle company Presence across entire spectrum of fashion through India s leading fashion brands Unlocking value for shareholders by giving them direct holding in a best-in-class fashion powerhouse Largest retail network in fashion space in India Sound Balance sheet to act as a strong enabler for growth Note : Refer slide 52 for transaction details 9

10 and driving strong earnings growth Financials Services, Telecom & Divisions Branded Apparels Consolidated Revenue (Rs. Crore) Consolidated EBITDA (Rs. Crore) 21,840 26,516 5,798 14,331 3, FY09 FY12 FY15 FY09 FY12 FY15 Consolidated Net Profit (Rs. Crore) Market Capitalisation (Rs. Crore) 890 1,416 10,723 21,654 4, FY09 FY12 FY15 Mar'09 Mar'12 Mar'15 10

11 ABNL - A USD 4.4 billion Conglomerate Financial Services Telecom $ # (23.28%) Fashion & Lifestyle Divisions Life Insurance^ Asset Management^ NBFC (100%) ^ Housing Finance (100%) ^ Madura * Pantaloons^ # (72.62%) Jaya Shree* Agri * Rayon * Private Equity (100%) ^ Broking (75%)^ # Wealth management (100%) ^ General Insurance Advisory (50.01%) ^ Online Money Management (100%)^ Leadership position in India Leader Top 3 Top 5 Insulators * * ^ $ Represent Divisions Represent Subsidiaries Represent Joint JV with Sun Life Financial, Canada Note : Percentage figures indicated above represent ABNL s shareholding in its subsidiaries /JV s # Listed 11

12 Anchored by a strong Management Team Board of Directors The Company has a balanced Board, comprising of 2 Executive, 2 Non-Executive, 1 nominee & 5 Independent Directors, including 2 women directors. Independent directors have rich experience in their respective fields and incl. ex-secretary to the President of India and former top executives from the esteemed organisations viz., Exim Bank, LIC, IDBI, UTI etc. Business Head Business Mr. Lalit Naik, Managing VFY, Chemicals, Agri, Director Insulators Mr. Ajay Srinivasan Financial Services Mr. Pranab Barua Fashion & Lifestyle (Madura & Pantaloons) Mr. Thomas Varghese Textiles Mr. Himanshu Kapania Telecom Whole Time Director & Chief Financial Officer Mr. Sushil Agarwal Each business is run as an independent SBU under the leadership of a business head Chief Financial Officer heads the finance function which is the life blood for a business Business heads & the Chief Financial Officer have wide-ranging experience in the areas of business development, strategy formulation, restructuring, acquisitions, technology management etc. Some of the senior management team members, prior to joining Aditya Birla Group, have also played key roles in the globally renowned organisations viz., Saint Gobain, Dow Chemicals, Prudential Corporation Asia, Hindustan Unilever, Reckitt Benckiser etc. 12

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14 Achieved revenue growth across the businesses Revenue ( ` Crore) Financial Services 1 Telecom Fashion & Lifestyle 3 Divisions Note 1 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately 50% in ABNL s financials, being a 50:50 Joint Venture till 9th Oct 12. Thereafter it is consolidated as subsidiary since ABFS holds 51% w.e.f. 10th Oct 12.. Note 2 : Full financial numbers of Idea Cellular. Being a JV, Idea Cellular has been consolidated at 27.02% from 12 th August 2008 upto 1 st March 2010, at ~ 25.3% till 10 th June 2014, at 23.63% till 23 rd July 2014 and at 23.29% thereafter as per AS 27. Note 3 : Represents Branded apparels & Accessories (Madura & Pantaloons). In FY13, nine months financials for Pantaloons are included pursuant to its acquisition w.e.f. appointed date 1 st July 2012 Note 4 : Represents Textiles, Agri, Rayon and Insulators. 14

15 Augmented profitability across the businesses EBITDA ( ` Crore) Financial Services 1 Telecom Fashion & Lifestyle 3 Divisions Note 1 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately 50% in ABNL s financials, being a 50:50 Joint Venture till 9th Oct 12. Thereafter it is consolidated as subsidiary since ABFS holds 51% w.e.f. 10th Oct 12. Interest cost of NBFC biz., being operating expense as per AS17, is deducted from segmental EBITDA. Note 2 : Full financial numbers of Idea Cellular. Being a JV, Idea Cellular has been consolidated at 27.02% from 12 th August 2008 upto 1 st March 2010, at ~ 25.3% till 10 th June 2014, at 23.63% till 23 rd July 2014 and at 23.29% thereafter as per AS 27. Note 3 : Represents Branded apparels & Accessories (Madura & Pantaloons). In FY13, nine months financials for Pantaloons are included pursuant to its acquisition w.e.f. appointed date 1 st July 2012 Note 4 : Represents Textiles, Agri, Rayon and Insulators. Note 5 : Excluding one time investment income 15

16 Consolidated Earnings Mix FY15 Segment Revenue 1 Segment EBIT 1 Fashion & Lifestyle 21% Divisions 21% Telecom 28% Financial Services 30% Fashion & Lifestyle 9% Divisions 17% Telecom 46% Financial Services 28% Note 1 : Revenue and EBIT Mix are excluding IT-ITeS business which was divested w.e.f. 9 th May

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18 Aditya Birla Financial Services A significant non-bank financial services group 18

19 Aditya Birla Financial Services (ABFS) Vision : To be a leader & role model in a broad based & integrated financial services business Assets under Management ( ` Crore) 1 Ranks among top 5 fund managers in India (excl. LIC) Diversified portfolio with 10 lines of businesses 88,309 88, ,995 1,07,539 1,22,362 1,21,891 Non Equity 26% y-o-y AUM at ` 164,995 Cr. (35% y-o-y) NBFC Lending book at ` 17,550 Cr. (52% y-o-y) 43,104 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Equity 68% y-o-y Anchored by 10,700 employees & trusted by > 6 million customers Nation wide presence through 1,350 branches / touch points and 127,500 agents / channel partners Revenue ( ` Crore) Entering strategic partnerships & investing in promising sectors Acquired mutual fund schemes & portfolio accounts from ING in Sep 14 Forayed into Housing Finance business in Oct 14. Signed MoU with MMI Holdings in Oct 14 to enter health insurance sector IFC became strategic financial investor in MyUniverse in Dec 14 BSLI received PFRDA approval for managing pension assets under NPS Note 1 : Includes AUM of Life Insurance, Private Equity and quarterly AAUM of Asset Management business Earnings before Tax ( ` Crore)

20 Aditya Birla Finance (NBFC) Lending book reached USD 3 billion mark (52% y-o-y) Well diversified portfolio for sustainable growth Lending book (` Crore) 17,550 Growth accompanied by robust credit appraisal and risk management practices 1,850 3,425 8,000 11,550 Gross NPA at 0.90% (PY: 1.29%) Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Net NPA at 0.32% (PY: 0.58%) Equity support and internal accruals funding growth Net worth expanded to ` 2,585 Cr. (46% y-o-y) Infusion of ` 545 Cr. in FY15 (` 1,720 Cr. in 5 years) Improved return ratios ROE enhanced to 14.6% (150 bps y-o-y) ROA at 2.0% (15 bps y-o-y) Revenue (` Crore) 715 Opex to NII 1,201 1, Net Profit (` Crore) 100 ROE Revenue at ` 1,776 Cr. (48% y-o-y) EBT at ` 411 Cr. (63% y-o-y) 39% 35% 36% 31% 29% 10.2% 11.4% 14.3% 13.1% 14.6% 20

21 Aditya Birla Finance (NBFC) Established in 1991, one of India s most reputed NBFC s Loan book growth continues to be robust and healthy More than 80% of lending book is secured Attained growth across all the segments Mortgages book crossed ` 5,000 Cr. (71% y-o-y) Capital Market, Infra Finance & Corporate finance portfolios crossed ` 4,000 Cr. each Healthy borrowings Profile Key business metrics FY13 FY14 FY15 Net Interest Income (incl. fee income) (%) 5.4% 5.1% 5.0% Return on Avg. Assets (p.a.) (%) 1.92% 1.85% 2.0% Gross NPA (as % of total loans & advances) 1.23% 1.29% 0.90% Net NPA (as % of total loans & advances) 0.83% 0.58% 0.32% Net Worth (` Crore) 1,079 1,769 2,585 Borrowings (` Crore) 6,867 9,647 14,594 Leverage (x) 6.4x 5.5x 5.6x Lending book as on 31 st Mar 15 : Break-up Highest A1+ rating for short term debt and AA+ rating for long term debt from ICRA, CARE and India Ratings Mortgage* 29% (PY:26%) Others 1% (PY:1%) Capital Market 24% (PY:28%) Out of total borrowings 73% is long term (PY: 61%) Infra Financing 23% (PY:22%) Corporate Finance 23% (PY:23%) * LAP / LRD & Construction Finance 21

22 Birla Sun Life Insurance (BSLI) Total Premium Income (` Crore) Growth in AUM (` Crore) 30,185 5,677 5,885 2, , , , New Business 19,760 53% 21,110 55% 22,929 59% 24,775 58% 62% Non Equity 3, Renewal 52% Premium 47% 45% 41% 42% 38% Equity FY 11 FY12 FY13 FY14 FY15 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Ranks 6th in India with new business market share of 7.6% (in private sector) #1 in Group new business ` 1,177 Cr. (44% y-o-y) Individual life new business ` 761 Cr. (13% y-o-y) Conservation ratio (individual life) improved to 82% in FY15 (PY:70%) Balanced sales mix: In FY15, non ULIP contributed to 62% (PY:60%) of individual new business. Embedded Value at ` 3,225 Cr. & VNB margin at 16.2% in FY14 ` Crore Revenue 4,702 5,267 Earnings before tax Net Profit / (Loss) Strong distribution reach : A nation-wide presence with more than 485 branches, 3 key bancassurance partners, over 85,000 direct selling agents and more than 150 corporate agents & brokers 22 BSLI

23 Birla Sun Life Asset Management (BSAMC) Growth in AUM (` Crore) Rising Market Share 133,689 Domestic Market Share Equity Market Share 83,451 96,429 30,766 Equity 9.09% 9.20% 9.45% 9.85% 10.09% 67,668 66,082 1,02,923 Non-Equity 5.45% 5.27% 5.26% 5.78% 6.92% Q4FY11 Q4FY12 Q4FY13 Q4FY14 Q4FY15 AAUM surged y-o-y by 39% to ` 133,689 Cr. in Mar 15. Ranks 4 th in India with market share of 10.09% in Q4FY15. Domestic Equity AAUM more than doubled y-o-y to ` 25,904 Cr. Ranks 5 th in terms of equity AAUM with market share at 6.92% Offshore AAUM reached USD 2 billion (103% y-o-y) ` Crore BSAMC Revenue Earnings before tax Net Profit / (Loss) Completed acquisition of all mutual fund schemes & portfolio management accounts from ING mutual fund. Adjudged Asset Management House of the Year by Money Today FPCIL Awards

24 Broking, Wealth Management & Online Money Management Broking Aditya Birla Money Wealth Management Aditya Birla Money Mart Online Money Management MyUniverse Broking : Industry volumes y-o-y by 71% in retail cash equity, 50% in retail F&O & 36% in commodities Market share of Aditya Birla Money surged to 2.48% (PY:1.37%) in retail F&O, improved to 0.64% (PY:0.54%) in commodities, enhanced to 0.50% (PY: 0.29%) in currency segment & while it was lower in retail cash equity segment at 1.34% (PY:1.43%) Wealth Management : Assets under Advisory at ~ ` 9,000 Cr. (as on 31 st Mar 15) Online Money Management Portal: MyUniverse is India s #1 online personal finance management platform Enjoying trust of > 1.5 million registered users & helping customers manage > ` 15,400 Cr. (as on 31 st Mar 15) IFC has become a strategic financial investor in the venture ` Crore ABML ABMM Revenue Earnings before tax (12) 6 (6) 6 Net Profit / (Loss) (12) 6 (6) 5 24

25 Other Financial Services Aditya Birla Housing Finance (ABHFL): Commenced operations in Oct 14, with capital infusion of ` 40 Cr. Lending book as on 31st Mar 15 is ` 142 Cr. Targeting to expand footprint from currently 15 cities to 30 cities Health Insurance Signed MoU with MMI Holdings Ltd. (a leading South African insurance-based financial services group) to enter health insurance business in India. Final agreement is being negotiated post which application to IRDA will be made. Aditya Birla Insurance Brokers (General insurance advisory) In FY15, ABIBL s premium placement increased y-o-y by 26% to ` 1,132 Cr. while industry premium increased by 9% Revenue at ` 73 Cr. (11% y-o-y) and EBT at ` 27 Cr. (26% y-o-y) 0.43% 0.50% ABIBL Market share 0.93% 1.16% 1.33% Aditya Birla Private Equity (ABCAP): Funds under management (net) at ` 1,121 Cr. Invested more than 90% of net deployable corpus as on 31 st Mar 15. Invested in Wonderla Holidays, City Union Bank, Indian Energy Exchange, Manpasand Beverages, CIBIL & Monte Carlo Fashions in FY15 ` Crore ABIBL ABCAP Revenue Earnings before tax Net Profit / (Loss)

26 ABFS : FY Performance Revenue at ` 7,926 Cr. (19% y-o-y) Earnings before Tax at ` 849 Cr. (17% y-o-y) Revenue FY14 FY15 % (` Crore) EBT FY14 FY15 % Remarks on profitability 1,201 1,776 48% ABFL % Expanded lending book (52% y-o-y) 4,702 5,267 12% BSLI % Lower new business sales and in-force book % BSAMC % Growth in total AUM (39% y-o-y) % ABIBL % Higher premium placement (26% y-o-y) % ABML (12) 6 n.a. Higher average daily brokerage (67% y-o-y) % ABMM (6) 6 n.a. Increase in business volumes 9 8 Others (net of elim.) (39) (67) Scaling up MyUniverse 6,637 7,926 19% Total % 26

27 Fashion & Lifestyle India s #1 Menswear Player India s #1 Womenswear Retailer 27

28 Revenue (INR Crs) Journey of Fashion & Lifestyle business Entry Phase Expansion and Growth Phase Unlocking full potential Establish presence in branded apparel and rapid expansion of retail network Transition from wholesale to retail Rapid expansion of retail networks for LP, VH, AS Acquisition of and PE 1 Madura Filling gaps in branded offerings through organic & inorganic route Acquisition of Pantaloons Launch of The Collective Fashion and Retail super-premium retail space JV with Hackett and People clothing line in Value segment Achieve economies of scale & unlocking shareholder value 2015 Consolidation of branded apparels businesses under one roof and Beyond Grew 14x in 11 years 4,759 5, ,026 1,116 1,251 1,811 2,239 3,802 1,285 2,523 1,661 3,226 1,851 3,735 Pantaloons Madura FY04 FY05 FY06 FY07 FY08 FY09 FY10 Note: (1) LP: Louis Philippe; VH: Van Heusen; AS: Allen Solly; PE: Peter England 28

29 Aditya Birla Fashion & Retail Largest fashion retail presence serving 10.8 million loyalty customers Revenue (` Crore) Presence across entire spectrum of Fashion with leading brands Expanding market presence with addition of retail stores as well as scaling up its own online presence through 1,811 2,239 3,802 4,759 5,450 Revenue at ` 5,450 Cr. (15% y-o-y) & EBITDA at ` 532 Cr. (32% y-o-y) Carpet Area (Million Sq. Ft.) Retail Network EBOs / Stores Revenue mix FY15 EBITDA (` Crore) , , , ,869 Pantaloons 34% Madura 66% Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Note 1 : Excluding one-time investment income 29

30 Winning Combination of Brands & Retail Powerhouse of India s leading fashion brands: Louis Philippe, Van Heusen, Allen Solly, Peter England Extensive reach through multi-channel distribution network: 1735 Retail stores & additional points of sale State of Art global supply chain Strong in-house design & product development capabilities Track record of robust financial performance A large 6.3 Million loyalty members base One of India s largest big-box affordable fashion retailer Unique business model: Design to Retail Strong portfolio of exclusive private brands: Contributing to 52% of Revenue Widest reach: 49 cities & 104 stores Rich portfolio spanning all genders & consumer segments One of the largest loyalty programs: ~4.5 Million members contributing to 60% of sales India s #1 Menswear Player India s #1 Womenswear Retailer 30

31 Bouquet of Market Leading Brands across Segments 31

32 Largest retail network in the fashion space As at Mar 31, 2015 Madura: 1735 EBOs Pantaloons: 104 stores + 30 Factory Outlets FY10 FY15 Combined Retail Footprint (million sq. ft.) 32

33 Madura Fashion & Lifestyle 1 Powerhouse of India s leading fashion brands Revenue (` Crore) Louis Philippe, Van Heusen, Allen Solly, Peter England Extensive reach through multi-channel distribution network 1735 retail EBOs & additional points of sale 1,811 2,239 2,523 3,226 3,735 Posted strong earnings growth in FY15 despite weak customer footfalls & higher promotions / discounting across the industry EBITDA (` Crore) Revenue at ` 3,735 Cr. (16% y-o-y) Retail channel sales (EBOs): 14% y-o-y led by stores expansion L2L sales growth was flat. Added (net) 194 EBOs in FY Wholesale channel sales (Department Stores & MBOs) : 20% y-o-y EBITDA at ` 463 Cr. (19% y-o-y) FY 11 FY 12 FY 13 FY 14 FY 15 Margins and ROACE expanded y-o-y to 12.4% & 72% Capex guidance for FY16 stands at ` 160 Cr. for new stores launches and renovation of existing stores EBITDA % 7.5% 8.8% 9.7% 12.0% 12.4% ROACE % 11% 20% 29% 64% 72% CE (` Cr.) Note 1 : Includes Madura Fashion, a division of ABNL and Madura Lifestyle, a subsidiary of ABNL. Madura Fashion owns & retails India s leading apparel brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England & People. Madura Lifestyle retails international luxury brands under the retail format The Collective & also retails Madura Fashion brands under the retail format Planet Fashion 33

34 Madura has rapidly grown its Power Brands by successfully extending them into fast growing segments Brand Core Brand and Product Extensions Successfully broadened product offerings of each brand yet reinforcing core positioning 34

35 Pantaloons Fashion & Retail Ltd. Strategic initiatives taken since acquisition Launched 39 new stores in past 2 years on a base of 69 stores 43 stores renovated and 100% store re-layouts accomplished Created 7 new private brands, added 15 external brands Created a stronger vendor network with pan India capability are yielding results Customer reach scaled to 104 Stores & 30 factory outlets across 2.3 million sq. ft. Share of Private brands & Madura brands enhanced from 46% to 62% Voted amongst India s top most trusted retailer brands in Brand Equity Survey 2014 Revenue Mix (FY15) Non-Apps 14% Kids 9% Women 42% Men 35% Revenue (` Crore) 1,661 1,851 In FY15, posted revenue at ` 1,851 Cr. (11% y-o-y) Driven by L2L growth of 5.5% and stores expansion Added 25 pantaloons stores & 6 factory outlets in FY15 Driven by portfolio enrichment, gross margin increased to 45% (340 bps y-o-y) EBITDA almost doubled from ` 39 Cr. to ` 75 Cr. EBITDA margin expanded to 4.1% (180 bps y-o-y) Higher accelerated depreciation on account of stores renovation & planned stores closures impacted bottom-line FY14 FY15 EBITDA (` Crore) EBITDA % 4.1% 2.3% FY14 FY15 35

36 Pantaloons Fashion & Retail Ltd. ` Crore (PY) Full Year (CY) Revenue 1,661 1,851 EBITDA Customer Reach Carpet Area (Million Sq Ft) 1.7 No. of Stores incl. Factory Outlet Segment EBIT (75) (110) ` Crore As on 31st Mar'14 As on 31st Mar'15 Net Fixed Assets (Incl. Capital Advances) Goodwill 1,168 1,168 Cash & Current Investments 17 7 Net Working Capital (50) 60 Net Worth Jun'12 Mar'13 Mar'14 Mar'15 Capex of ` 115 Cr. was spent during FY15 FY16 Capex guidance stands at about ` 125 Cr. mainly towards launch of new stores Debt 1,050 1,311 36

37 Telecom 3 rd largest Cellular Operator in India 37

38 Idea Cellular (Telecom) Having a market cap of ~USD 11 billion, Idea' is the biggest revenue market share gainer in India since past five years Ranks 3 rd in terms of pan India revenue market share 1 at 17.5%. Ranks among top 6 players globally with 2.06 billion minutes of usage daily Revenue Market Share % 14.4% 14.8% 16.1% 17.5% Base of 161 million subscribers provides a platform for upgrading pure voice customers to wireless data services in future Q3FY11 Q3FY12 Q3FY13 Q3FY14 Q3FY15 Consolidated Revenue (` Crore) Idea holds 16% stake in the world s leading tower company Indus Towers Solid foundation for business growth laid for the next 20 years Won 79.4 MHz spectrum in Mar 15 auctions for ~USD 5 billion 15,438 19,489 22,407 26,432 31,527 Strong cash flows & funds raised supporting balance sheet 2 & growth plans Net debt to EBITDA 2 at 1.31x (PY: 2.61x) Generated post tax cash profit 2 of ` 8,482 Cr. in FY15 (32% y-o-y growth) Raised equity capital of ` 3,750 Cr. (through QIP & Preferential allotment) in FY15 6% of share capital for FY15: Overall payout of ` 260 Cr. (incl. DDT) ROACE improved y-o-y from 12% to 14% in FY15 Consolidated EBITDA (` Crore) 11,281 8,519 3,910 5,085 6,071 1 Based on gross revenue for UAS & Mobile licenses only, as released by TRAI 2 Standalone = Idea and its 100% subsidiaries 38

39 Idea Cellular (Telecom) Subscribers (In Million) Net Profit (` billion) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13 Mar'14 Mar'15 4,763 10,114 Cell Sites: Capacity grew multifold 24,793 49,860 66,187 73,668 1,26,159 1,42,658 96,015 1,07,234 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13 Mar'14 Mar'15 Robust growth in MOUs (billion minutes) FY06 FY07 FY08 FY09 FY10 FY08 FY09 FY10 Strong Balance Sheet (Figures in ` billion) Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13 Mar '14 Mar'15 Total Debt Net Worth As of Mar 15, Idea has around 102.3% of reported subscribers as active subscribers, highest in the industry Capex guidance for FY16 (excl. any spectrum payout) stands at ` billion. Incurred ` 40.5 billion in FY15 39

40 Divisions Leading manufacturer of Linen, Urea, VFY and Insulators in India 40

41 Divisions (Jaya Shree, Indo-Gulf Fertilisers, Indian Rayon & Aditya Birla Insulators) Revenue at ` 5,405 Cr. (9% y-o-y) EBITDA at ` 615 Cr. (11% y-o-y) ROACE improved y-o-y from 14% p.a. to 16% p.a. Revenue FY14 FY15 % (` Crore) EBITDA FY14 FY15 % Remarks on profitability 1,300 1,435 10% Jaya Shree % Higher profitability in Linen segment offset by lower wool combing volumes 2,313 2,558 11% Agri % Improved energy efficiency, higher fixed cost reimbursement as per Government policy and increased sales of pesticides Rayon % Profitable growth in VFY segment offset by lower caustic volumes & ECU realisation % Insulators % Higher sales volume & realisation in substation segment ,405 9% Total % 41

42 Jaya Shree Increasing popularity of Linen as a comfort & style fabric will drive growth of linen fabric demand at a CAGR of 10% in next five years. To meet the growing demand in India, currently ~70% of linen yarn demand is met through imports denoting expansion opportunity for domestic players Jaya Shree commands domestic leadership position in Linen & Wool segments Linen Capacities : Yarn - 3,400 TPA, Fabric million metres p.a. Wool Capacities : Worsted Yarn - 26,356 spindles, Wool Combing - 8 Cards Focusing on retail expansion & brand promotion to fortify Linen Club fabric brand Retailing linen fabric through 115 EBOs and 3,500+ MBOs Rising share of linen led by expansion contributing to profitable growth Targeting to further expand Linen Yarn capacity from 3,400 TPA to 6,400 TPA at a capex of ~` 220 Cr. by 2016, to tap sector growth Operating at a sound ROACE of 53% p.a. Wool Jaya Shree Revenue Mix 47% 61% FY15 FY11 53% 39% Linen 774 Revenue (` Crore) 1,300 1,144 1,046 1, EBITDA (` Crore) ROACE(%) 82% 32% Capital Employed (` Cr.) 97% 57% 53%

43 Indo Gulf Fertilisers (Agri-business) Acute deficit of urea in India Approx. 1/4th of the urea demand is imported Government s gas pooling policy aiming to improve plant efficiency & reduce subsidy outgo will benefit the sector Indo-Gulf is the 8 th largest & one of the most energy efficient urea plants in India A complete agri-solutions provider offering Fertilisers, Seeds and agro-chemicals Strong brand Birla Shaktiman is preferred choice of farmers Also offering value adding variety Neem coated Krishi Dev Due to government policy for urea production beyond 100% quantity as permissible under Pricing mechanism, few urea manufacturers had to take urea plant shutdown. Indo-Gulf had to take urea plant shutdown for 35 days, thereby, pulling down earnings from normalised level. In FY14 too, plant shutdown was taken for 41 days In FY15, Revenue grew y-o-y by 11% largely due to pass through of rise in natural gas prices. EBITDA surged y-o-y by 90% to ` 148 Cr. led by improved energy efficiency and higher fixed cost reimbursement as per Government policy ROACE(%) Capital Employed (` Cr.) Revenue (` Crore) EBITDA (` Crore) 39% 26% 12% 3% 7% 1,244 2,107 2,924 2,313 2,

44 Indian Rayon (VFY and Chemicals) VFY has a niche market globally - Premium is driven by quality and value added yarns Indian Rayon is the 2 nd largest producer of VFY in India with a capacity of 19,800 tons p.a. Chemicals Revenue Mix 19% FY15 VFY Integrated facilities : Cost effective 34.5 MW captive power plant 81% Expanded its presence in fine & superfine VFY segment using Spool Technology from Germany at a capex of ~ ` 270 Cr. in Mar 13. The new unit will help in enhancing product quality & range, in superfine segment. In FY15, VFY segment posted higher profitability led by expanded new superfine yarn capacity. In Chemicals Segment, maintenance shutdown in Caustic Soda plant & lower ECU realisation impacted earnings Total Revenue grew marginally y-o-y to ` 865 Cr., EBITDA de-grew y-o-y by 11% to ` 197 Cr. Operating at an ROACE of 21% ROACE(%) Capital Employed (` Cr.) Revenue (` Crore) EBITDA (` Crore) 17% 19% 26% 24% 21%

45 Aditya Birla Insulators Used in power generation, Transmission & distribution (T&D) and by Original Equipment Manufacturers (OEMs) Aditya Birla Insulators is largest domestic producer & 4 th largest globally with a capacity of 45,260 TPA Power Grid corporation of India & State Electricity Boards, ABB, Areva, Siemens etc. are amongst major customers Insulators industry s domestic sales volume de-grew y-o-y by 12% during Apr 14-Jan 15 (Source : IEEMA) Revenue of Aditya Birla Insulators grew y-o-y by 8% to ` 548 Cr., EBITDA rose by 14% to ` 95 Cr. Profitability in the transmission segment was lower due to 42 days disruption / suspension of plant operations in Q1FY15 caused by stoppage of work in the plant by workers, pending long term wage settlement. ROACE improved from 15% p.a. to 17% p.a. Cheaper Chinese imports had adversely impacted domestic players and the industry had appealed for anti-dumping duty. The Ministry of Finance, on 16 th Sep 14, imposed an interim anti-dumping duty on imports of insulators from China and on 11 th Apr 15, extended the duty till 15 th Sep 19 to create a level playing field for the domestic manufacturers ROACE(%) Capital Employed (` Cr.) Revenue (` Crore) 134 EBITDA (` Crore) 34% 12% 10% 15% 17%

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47 Consolidated Results - Segmental ( ` Crore) (PY) Revenue (CY) Consolidated Results (PY) EBIT (CY) 6,637 7,926 Aditya Birla Financial Services ,702 5,267 Life Insurance ,946 2,666 Other Financial Services* (11) (7) Elimination - - 6,669 7,467 Telecom (Nuvo's 952 1,305 4,759 5,450 Fashion & Lifestyle , IT-ITeS^ 181 (16) 4,979 5,405 Divisions ,300 1,435 Jaya Shree ,313 2,558 Agri Rayon Insulators (50) (16) Inter-segment Elimination - 25,892 26,516 Consolidated Results 2,487 2,857 Other Financial Services include Asset Management, NBFC, Housing Finance, Private Equity, Broking, Wealth Management, online money management & General Insurance * Broking businesses. Interest cost of NBFC business, being an operating expense as per AS 17, is deducted from Segment Idea is consolidated at ~25.3% till 10 th June 2014, at 23.63% till 23 rd July 2014 and at 23.29% thereafter ^ Divested w.e.f 9 th May

48 Profit & Loss ( ` Crore) Stanadlone (PY) (CY) Profit & Loss Account (PY) Full Year (CY) 8,021 8,938 Revenue 25,892 26,516 1,246 1,186 EBITDA 4,927 5, Less : NBFC Interest expenses 742 1, Less : Other Interest Expenses EBDT 3,376 4, Less : Depreciation 1,609 1, Earnings before Tax (before exceptional items) 1,767 2, Exceptional Gain / (Loss) 5 (13) Earnings before Tax 1,772 2, Less : Provision for Taxation (Net) Less : Minority Interest One-off items: Net Profit 1,143 1,416 In FY15, consolidated profit was lower by ` 36 Cr. on account of net loss of ` 23 Cr. from operations of Minacs for the period from 1 st Apr 14 to 8 th May 14 & exceptional loss of ` 13 Cr. pertaining to the divestment of Minacs. This loss is without considering deferred grant of ` 42 Cr. receivable over next 3 years, which will be accounted for on actual receipt basis. In FY14, consolidated profit was higher by ` 65 Cr. on account of divestment of Carbon Black business (including net tax credit of ` 41 Cr.) and interest cost is higher by one-time charge of ` 88 Cr. on redemption of CCDs by Minacs owing to its divestment. Exceptional items in FY14 include loss of ` 19 Cr. on impairment of goodwill relating to investments in broking & wealth management businesses and gain of ` 24 Cr. on divestment of Carbon Black business 48

49 Balance Sheet ( ` Crore) Mar-14 Standalone Mar-15 Balance Sheet Consolidated Mar-14 Mar-15 8,108 8,519 Net Worth 11,189 12, Minority Interest ,753 3,688 Debt 10,893 11, NBFC borrowings 9,647 14, Deferred Tax Liabilities (Net) ,949 12,314 Capital Employed 33,012 40,142 Policyholders' funds (Incl. funds - - for future appropriation) 23,557 28,839 11,949 12,314 Total Liabilities 56,569 68,981 1,845 1,859 Net Block (Incl. Capital Advances) 13,045 12, Goodwill 4,982 3, NBFC Lending 11,550 17,550 1,574 1,635 Net Working Capital ,952 8,695 Long Term Investments Life Insurance Investments 24,764 30, Policyholders' Investments 23,435 28, Shareholders' Investments 1,329 1, Cash Surplus & Current Investments 1,089 4, Book Value (`) Net Debt / Annualised EBITDA (x) Net Debt / Equity (x) ,196 21,654 Market Capitalisation - NSE Note : 1. Standalone capex of ` 222 Cr. was incurred in FY15. Capex guidance for FY16 stands at ` 300 Cr. 2. Investments of ` 600 Cr. are planned in financial services businesses in FY16 3. Board of Directors of ABNL has recommended an equity dividend of 70% (` 7 per share) for FY15 entailing outgo of ` Cr. (incl. DDT of ` 18.5 Cr.) 49

50 Shareholding Pattern & Market Cap Category No. of Shareholders As on 31st March 2015 No. of Shares held (in million) Shareholding (%) Promoter & Promoter Group % Foreign Institutional Investors % Domestic Institutional Investors % Non-Institutional Investors 1,31, % GDR's % Total 1,32, % Trusted by over 132,500 shareholders Over 98% of shares are in dematerialised form Face value of ` 10 per share For analysts coverage on ABNL visit : , , ,992 ABNL Share Price (`) , , ,336 9, Market Cap (` Cr.) ,723 11,727 14, ,654 23,977 Mar'05 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 15th May'15 Stock Code: BSE : NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IN / IRIG LX 50

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52 Transaction Structure Pre Transaction Post Transaction ABG Public ABNL ABG Public 9.06% # 51.1% 39.84% % 41.7% ABNL MGLRCL 2 Madura Lifestyle 100% # 72.6% # PFRL 27.4% PFRL / ABFRL Madura Lifestyle # Including indirect holding Transaction Steps 1 Mirror Demerger of Madura Fashion division into PFRL 2 Mirror Demerger of Madura Lifestyle division into PFRL Net debt of ~Rs. 473 Cr. will be transferred along with the businesses into PFRL. Transaction is subject to corporate & regulatory approvals and is expected to take 6 to 9 months Swap Ratio 26 equity shares of PFRL for every 5 equity shares of ABNL 7 equity shares of PFRL for every 500 equity shares of MGLRCL 1 equity share of PFRL for all o/s preference shares of MGLRCL Shareholder holding 100 shares in ABNL will continue to hold 100 shares in ABNL & in addition will get 520 shares of PFRL 52

53 Transaction Details Key Regulatory Approvals Regulatory Body Stock Exchange and SEBI High Courts Requirement Scheme filing after board approval Post court order Allotment of shares Approval for listing of shares Bombay and Gujarat High Courts Transaction is expected to be completed in next 6-9 months Advisors Transaction Advisor Standard Chartered Bank Independent Fairness Opinion Axis Capital Limited JM Financial Institutional Securities Pvt. Ltd. Legal Advisor Amarchand & Mangaldas & Suresh A Shroff & Co. Valuation Expert Price Waterhouse & Co. LLP Bansi S Mehta & Co. 53

54 Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements including, but not limited to, those relating to general business plans & strategy of Aditya Birla Nuvo Limited ("ABNL"), its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in ABNL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in the countries in which ABNL conducts business. Important factors that could make a difference to ABNL s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in ABNL s principal markets, changes in Government regulations, tax regimes, competitors actions, economic developments within India and the countries within which ABNL conducts business and other factors such as litigation and labour negotiations. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of ABNL's shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of ABNL. ABNL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. ABNL assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. ABNL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF ABNL This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. These materials are not an offer of securities for sale in or into the United States, Canada or Japan. Copyright 2015 Aditya Birla Nuvo Aditya Birla Nuvo Limited Corporate Identity Number L17199GJ1956PLC Regd. Office: Indian Rayon Compound, Veraval (Gujarat) Corporate Office: 4th Floor A Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai Website: or nuvo-investors@adityabirla.com 54