Stock Code: BSE : NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IN / IRIG LX

Transcription

1 Stock Code: BSE : NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IN / IRIG LX

2 Contents Key Highlights 3 12 Business-wise Performance Going Forward 29 Financials and other Annexure Note 1 : The financial results of ABNL are consolidated financials unless otherwise specified Note 2 : The financial figures in this presentation have been rounded off to the nearest ` 1 Crore Note 3 : 1 USD : INR 60 Glossary CY : Current Year FY : Financial Year (April-March) PY Corresponding period in Previous Financial Year PQ Previous Quarter Q1 April-June Q4 January-March YTD Year to date ROACE : Return on Avg. Operating Capital Employed based on EBIT VAS Value Added Services EBO Exclusive Brand Outlet MBO Multi Brand Outlet TPA Tons per annum AAUM Average Assets under Management L2L Like to Like 2

3 Indian Economy India s GDP is estimated to grow at 7.4% in FY15 compared to 6.9% in the previous year (Source : Ministry of Finance, at constant market prices) As per IMF, India s GDP is expected to grow at 7.5% in 2015 & 2016 outpacing China Controlled inflation propelled RBI for rate cuts WPI inflation at -2.33% is lowest in 9 years & CPI inflation eased to 5.17% in Mar 15 IIP grew y-o-y by 5% in Feb 15. Cumulative growth in Apr-Feb 15 at 2.8% vis-à-vis -0.1% in previous year RBI cut repo rate in Jan 15 & Mar 15 by 25 bps each on easing inflation and to push economic growth Reforms for economic development continue to remain high on Government s agenda FDI / FII limit in Insurance sector increased from 26% to 49% Government met its fiscal deficit target through auctions Consumer confidence index has risen to its highest since Apr 11 Business confidence index continues to remain high However, consumption and investment growth on the ground is yet to pick up 3

4 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 4

5 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 5

6 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 6

7 A platform to drive synergy of resources Standalone Net Debt ( ` Crore) Standalone Ratios 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) 7

8 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 50 for transaction details 8

9 and driving strong earnings growth Consolidated Revenue (Rs. Crore) Financials Services, Telecom & Divisions Branded Apparels 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, Mar'09 Mar'12 Mar'15 FY09 FY12 FY15 9

10 Performance highlights : 10

11 Consolidated earnings growth Revenue 7,111-1% ( ` Crore) 25,892 26,516 7,073 2% Ex-IT-ITeS business (divested w.e.f 9 th May 14), L2L revenue growth is 11% in Q4 & 14% in FY15 FY 14 FY 15 FY 14 FY 15 Quarter 4 Full Year EBITDA Net Profit ( ` Crore) 4,927 5,798 Ex-IT-ITeS business, L2L EBITDA growth is 29% in Q4 & 25% in FY15 ( ` Crore) 1,143 1,416 1,263 21% 1,527 18% FY 14 FY 15 FY 14 FY 15 Quarter 4 Full Year Ex-IT-ITeS business and before one-off items, L2L Net Profit growth is 36% in Q4 & 39% in FY % 24% FY 14 FY 15 FY 14 FY 15 Quarter 4 Full Year 11

12 Consolidated Earnings Mix FY15 Segment Revenue 1 Segment EBIT 1 Fashion & Lifestyle 21% Divisions 21% Financial Services 30% Telecom 28% 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

13 Aditya Birla Financial Services A significant non-bank financial services group Performance highlights : 13

14 Aditya Birla Financial Services : Progressing as envisioned Vision : To be a leader & role model in a broad based & integrated financial services business A significant non-bank financial services group Ranks among top 5 fund managers in India (excl. LIC) Diversified portfolio with 10 lines of businesses AUM at ` 164,995 Cr. (35% y-o-y) NBFC Lending book at ` 17,550 Cr. (52% y-o-y) 88,309 88,393 Assets under Management ( ` Crore) 1,07,539 1,22, ,21,891 43,104 Mar'11 Mar'12 Mar'13 Mar'14 Mar' Revenue ( ` Crore) , Non Equity 26% y-o-y Equity 68% y-o-y 7926 Entering strategic partnerships & investing in promising sectors FY11 FY12 FY13 FY14 FY15 Forayed into Housing Finance business in Oct 14 Acquired mutual fund schemes & portfolio accounts from ING in Sep 14 Earnings before Tax ( ` Crore) IFC became strategic financial investor in MyUniverse in Dec 14 Signed MoU with MMI Holdings in Oct 14 to enter health insurance sector Note 1 : Includes AUM of Life Insurance, Private Equity and quarterly AAUM of Asset Management business FY11 FY12 FY13 FY14 FY15 14

15 Aditya Birla Financial Services Aditya Birla Finance Limited (ABFL) - NBFC Lending book reached USD 3 billion mark (52% y-o-y) Well diversified portfolio for sustainable growth Growth accompanied by robust credit appraisal and risk management practices Gross NPA at 0.90% (PY: 1.29%) 1,850 3,425 Lending book (` Crore) 8,000 11,550 17,550 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 at ` 1,776 Cr. (48% y-o-y) EBT at ` 411 Cr. (63% y-o-y) 39% Revenue (` Crore) 715 Opex to NII 35% 36% 1,201 1,776 FY11 FY12 FY13 FY14 FY15 31% 29% FY11 FY12 FY13 FY14 FY % 11.4% Net Profit (` Crore) 100 ROE FY11 FY12 FY13 FY14 FY % 13.1% 14.6% FY11 FY12 FY13 FY14 FY15 15

16 Aditya Birla Financial Services Birla Sun Life Insurance (BSLI) AUM crossed ` 30,000 Cr. (22% y-o-y) Ranks 6 th in India with new business market share of 7.6% (in private sector) AUM (` Crore) #1 in Group new business ` 1,177 Cr. (44% y-o-y) 30,185 Individual life new business ` 761 Cr. (13% y-o-y) Improved quality of business 19,760 21,110 22,929 24,775 Opex ratio at 16.6% (240 bps y-o-y) Surrender as a % of average AUM reduced y-o-y by 165 bps FY11 FY12 FY13 FY14 FY15 Birla Sun Life Asset Management (BSAMC) Ranks 4 th in India with domestic AAUM market share at 10.09% (PY: 9.85%) Total AAUM rose to ` 1,33,689 Cr. (39% y-o-y) AAUM (` Crore) 1,33,689 Strong focus on scaling up equity and offshore assets Domestic Equity AAUM more than doubled y-o-y to ` 25,904 Cr. 67,668 66,082 83,451 96,429 # 5 in terms of equity AAUM with market share at 6.92% (PY : 5.78%) Offshore AAUM reached USD 2 billion (103% y-o-y) Q4FY11 Q4FY12 Q4FY13 Q4FY14 Q4FY15 16

17 Aditya Birla Financial Services Aditya Birla Housing Finance (ABHFL) Lending book as on 31 st Mar 15 is ` 142 Cr. Targeting to expand footprint from currently 15 cities to 30 cities next year Aditya Birla Insurance Brokers (ABIBL: General Insurance Advisory) In FY15, ABIBL s premium placement rose y-o-y by 26% to ` 1,132 Cr. while industry premium grew by 9% Market share increased to 1.33% (PY 1.16%) Aditya Birla Private Equity (ABPE) : Invested more than 90% of net deployable corpus. Aditya Birla Money (Broking, Wealth Management & Online Money Management) Broking (ABML) : Market share improved in retail F&O and commodities segments Higher average daily brokerage (67% y-o-y) drove earnings growth Wealth Management (ABMM) : Assets under Advisory at ~ ` 9,000 Cr. (as on 31 st Mar 15) MyUniverse is India s #1 online personal finance management platform Enjoying trust of > 1.5 million registered users & helping customers manage > ` 15,400 Cr. of money as on date IFC has become a strategic financial investor in the venture 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. 17

18 Aditya Birla Financial Services 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 % 18

19 Fashion & Lifestyle India s #1 Menswear Player India s #1 Womenswear Retailer Performance highlights : 19

20 Fashion & Lifestyle Largest fashion retail presence serving 10.8 million loyalty customers Presence across entire spectrum of Fashion with leading brands Revenue (` Crore) 3,802 4,759 5,450 Expanding market presence with addition of retail stores as well as scaling up its own online presence through Revenue at ` 5,450 Cr. (15% y-o-y) & EBITDA at ` 532 Cr. (32% y-o-y) 2,239 1,811 FY11 FY12 FY13 FY14 FY15 Revenue mix FY15 Retail Network Carpet Area (Million Sq. Ft.) EBOs / Stores Pantaloons 34% Madura 66% EBITDA (` Crore) ,129 1,367 1,648 1, Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 FY11 FY12 FY13 FY14 FY15 Note 1 : Excluding one-time investment income 20

21 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 Robust supply chain, strong in-house design & product development capabilities FY11 FY12 FY13 FY14 FY15 EBITDA (` Crore) Posted strong earnings growth in FY15 despite weak customer footfalls & higher promotions / discounting across the industry 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 FY15 Wholesale channel sales (Department Stores & MBOs) : 20% y-o-y FY11 FY12 FY13 FY14 FY15 FY 11 FY 12 FY 13 FY 14 FY 15 EBITDA at ` 463 Cr. (19% y-o-y) EBITDA % 7.5% 8.8% 9.7% 12.0% 12.4% Margins and ROACE expanded y-o-y to 12.4% & 72% ROACE % 11% 20% 29% 64% 72% Note 1 : Includes Madura Fashion, a division of ABNL and Madura Lifestyle, a subsidiary of ABNL. Madura Fashion owns and retails India s leading apparel brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England and People. Madura Lifestyle retails international luxury brands under the retail format The Collective and It also retails Madura Fashion brands under the retail format Planet Fashion 21

22 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 Revenue Mix (FY15) Non-Apps 14% Kids 9% Women 42% Men 35% 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 (` 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 22

23 Telecom 3 rd largest Cellular Operator in India Performance highlights : 23

24 Telecom : Idea Cellular Robust performance across key metrics 2 driving earnings growth FY14 FY15 Δ% Minutes of Use (billion) % Average Realisation per minute (`) % Cost per minute (`) % Data Volume (billion Mega Bytes) % Revenue Market Share % 13.3% 14.4% 16.1% 14.8% Q3FY11 Q3FY12 Q3FY13 Q3FY14 Q3FY15 Consolidated Revenue (` Crore) Consolidated Net Profit (` Crore) 1,968 3, % 31,527 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 Idea grew at 1.8 times the wireless industry in Calendar Year 2014 FY15 revenue at ` 31,527 Cr. (19% y-o-y) & EBITDA at ` 11,281 Cr. (32% y-o-y) Strong cash flows & funds raised supporting balance sheet 2 & growth plans FY11 FY12 FY13 FY14 FY15 Consolidated EBITDA (` Crore) 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) 3,910 5,085 6,071 8,519 11,281 Proposed 6% of share capital [Outlay of ` 260 Cr. incl. DDT] 1 Based on gross revenue for UAS & Mobile licenses only, as released by TRAI 2 Standalone = Idea and its 100% subsidiaries FY11 FY12 FY13 FY14 FY15 24

25 Divisions Leading manufacturer of Linen, Urea, VFY and Insulators in India Performance highlights : 25

26 Divisions Jaya Shree Led by rising popularity of Linen as comfort & style fabric, its demand has grown at a strong pace. Currently ~70% of linen yarn demand is met through imports reflecting expansion opportunity. Jaya Shree is a leading player in Linen & Wool segments in India Focusing on retail expansion & brand promotion to fortify Linen Club fabric brand Jaya Shree : Revenue Mix Wool FY15 Linen FY11 47% 53% 61% 39% Retailing linen fabric through 115 EBOs and 3,500+ MBOs Expanded linen capacities 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. in 2016, to tap sector growth 774 Revenue (` Crore) 1,300 1,144 1,046 1, EBITDA (` Crore) Operating at a sound ROACE of 53% p.a. Indo-Gulf Fertilisers FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Acute deficit of urea in India Approx. 1/4 th of the urea demand is imported Government s gas pooling policy will be beneficial for the sector as it aims to improve plants efficiency & reduce subsidy outgo Indo-Gulf is the 8 th largest & one of the most energy efficient urea plants in India Strong Birla Shaktiman brand is preferred choice of farmers Revenue (` Crore) EBITDA (` Crore) Indo-Gulf is a complete agri-solutions provider Offering fertilisers, seeds and agro-chemicals Improved energy efficiency augmented earnings y-o-y 2,924 2,107 2,313 2,558 1,244 FY11 FY12 FY13 FY14 FY FY11 FY12 FY13 FY14 FY15 26

27 Divisions Indian Rayon VFY is a niche market globally premium is driven by quality & value added yarns Indian Rayon : Revenue Mix Indian Rayon is India s 2 nd largest manufacturer and largest exporter of VFY Integrated facilities : 34.5 MW captive power plant & caustic soda operations Chemicals 19% FY15 81% VFY 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 Operating at an ROACE of 21% p.a. 565 Revenue (` Crore) EBITDA (` Crore) Aditya Birla Insulators FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 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 Aditya Birla Insulators is India s largest & world s 4 th largest manufacturer Revenue (` Crore) EBITDA (` Crore) In FY15, profitability improved y-o-y led by higher volumes & realisation in the substation segment ROACE improved to 17% p.a. FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 27

28 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 % 28

29 Going Forward Financial Services Gaining market share in the Life Insurance business through good quality sales driven by an efficient distribution network with acceptable expense levels Growing profitable assets while maintaining fund performance in the Asset Management business Expanding book size in the NBFC business while keeping risk under control Growing the Housing Finance business Foray into the Health Insurance business Driving profitable growth in other businesses Capitalising on brand!dea, strong cash flows and expanding spectrum profile & infrastructure in the Telecom business to capture opportunities in voice, emerging wireless broadband business & mobile banking segments Driving profitable expansion by tapping emerging markets in tier 2/3 cities, entering new product categories, enriching product mix and focusing on omni-channel strategy in the Fashion & Lifestyle business Expanding linen capacity, capturing sector growth opportunities & improving operating efficiency in the divisions 29

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31 Consolidated Revenue ( ` Crore) Quarter - 3 Quarter 4 Revenue Full Year (PQ) 1,913 2,271 2,585 Aditya Birla Financial Services 6,637 7,926 1,223 1,740 1,825 Life Insurance 4,702 5, Other Financial Services* 1,946 2,666 (2) (1) (2) Elimination (11) (7) 1,865 1,752 1,955 Telecom (Nuvo's 6,669 7,467 1,349 1,243 1,403 Fashion & Lifestyle 4,759 5, IT-ITeS^ 2, ,522 1,134 1,134 Divisions 4,979 5, Jaya Shree 1,300 1, Agri 2,313 2, Rayon Insulators (9) (13) (3) Inter-segment Elimination (50) (16) 6,640 7,111 7,073 Consolidated Revenue 25,892 26,516 * Include Asset Management, NBFC, Housing Finance, Private Equity, Broking, Wealth Management, online money management & General Insurance Broking 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

32 Segment EBIT ( ` Crore) Quarter - 3 Quarter 4 EBIT Full Year (PQ) Aditya Birla Financial Services Life Insurance Other Financial Services* Telecom (Nuvo's 952 1, Fashion & Lifestyle IT-ITeS^ 181 (16) Divisions Jaya Shree (30) (28) Agri Rayon Insulators Segment EBIT 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

33 Consolidated Profit & Loss ( ` Crore) Quarter - 3 (PQ) Quarter 4 Consolidated Profit & Loss Account Full Year 6,640 7,111 7,073 Revenue 25,892 26,516 1,484 1,263 1,527 EBITDA 4,927 5, Less : NBFC Interest expenses 742 1, Less : Other Interest Expenses , ,037 EBDT 3,376 4, Less : Depreciation 1,609 1, Earnings before Tax (before exceptional items) 1,767 2,338 - (19) - Exceptional Gain / (Loss) 5 (13) Earnings before Tax 1,772 2, Less : Provision for Taxation (Net) Less : Minority Interest Net Profit 1,143 1,416 One-off items: In FY15, profit is 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, profit is 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 33

34 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.) 34

35 Standalone Profit & Loss ( ` Crore) Quarter - 3 Quarter 4 Standalone Profit & Loss Account Full Year (PQ) 2,367 1,967 2,071 Revenue 8,021 8, EBITDA 1,246 1, Interest Expenses EBDT Depreciation Earnings before Tax (before exceptional items) Exceptional Gain / (Loss) Earnings before Tax Provision for Taxation (Net) Net Profit One-off items: In FY14, profit is higher by ` 209 Cr. :(a) ` 65 Cr. on divestment of Carbon Black business (incl. net tax credit of ` 41 Cr.) (b) ` 144 Cr. gain on buyback of shares by BSLI In FY15, profit is higher by ` 19 Cr. being premium received on redemption of preference shared by Minacs. 35

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37 Aditya Birla Financial Services Quarter 4 Revenue ` Crore Full Year 1,740 1,825 Birla Sun Life Insurance 4,702 5, Aditya Birla Finance 1,201 1, Birla Sun Life Asset Management Aditya Birla Insurance Brokers Aditya Birla Money Aditya Birla Money Mart Aditya Birla Capital Advisors (PE) (2) (2) Others / (Elimination) (14) (13) 2,271 2,585 Revenue 6,637 7, Earnings before tax Net Profit

38 Aditya Birla Finance (ABFL) Loan book growth continues to be robust and of good quality 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 & Corporate finance books crossed ` 4,000 Cr. each Healthy borrowings Profile Highest A1+ rating for short term debt Long term debt rating upgraded to AA+ in FY15 Out of total borrowings ~75% is long term (PY: ~60%) ` Crore Quarter 4 PY CY Revenue Earnings before tax Net Profit / (Loss) Full Year Revenue 1,201 1,776 Earnings before tax Net Profit / (Loss) Lending book as on 31 st Mar 15 : Break-up Mortgage* 29% (PY:26%) Infra Financing 23% (PY:22%) * LAP / LRD & Construction Finance Others 1% (PY:1%) Capital Market 24% (PY:28%) Corporate Finance 23% (PY:23%) 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 38

39 Birla Sun Life Insurance (BSLI) Industry In FY15, industry s total new business de-grew by 9% while private sector grew by 16%. In individual life new business, industry de-grew by 10% while private sector grew by 16% Private sector growth is driven by large bank backed players Open architecture in bancassurance and increase of FDI / FII limit in insurance sector from 26% to 49% will be beneficial for the industry Birla Sun Life Insurance In FY15, New business premium at ` 1,938 Cr. (14% y-o-y) Renewal premium at ` 3,295 Cr. (5% y-o-y) Revenue at ` 5,267 Cr. (12% y-o-y) driven by group business EBT at ` 285 Cr. (23% y-o-y) Share of non-ulips in individual new business at 62% (PY: 60%) Out of this, PAR products contributed to 42% (PY: 31%) Quarter 4 ` Crore Full Year New Business Premium (Gross) 1,697 1, Individual Group 818 1,177 1,052 1,110 Renewal Premium (Gross) 3,136 3,295 1,018 1,065 Individual 3,010 3, Group ,778 1,820 Premium Income (Gross) 4,833 5,233 (80) (79) Less : Reinsurance ceded & Service tax (307) (267) 1,699 1,741 Premium Income (Net) 4,526 4, Other Operating Income ,740 1,825 Revenue 4,702 5, Earnings before tax Net Profit Assets under management 24,775 30,185 Policyholders' Investments 23,445 28,632 Shareholders' Investments 1,329 1,552 39

40 Birla Sun Life Asset Management (BSAMC) Industry Recorded its highest ever AAUM at ` trillion (31% y-o-y) Equity AUM rose by 89% to ` 3.7 trillion contributing to more than 60% of industry s AUM growth in Birla Sun Life Asset Management Total AAUM at ` 1,33, 689 Cr. (39% y-o-y) Equity & offshore AAUM surged by 124% and 103% Consistently gaining market share Equity market share is expanding year after year Attained 10.3% share in industry s net equity sales during Retail focus Monthly SIP book size is 84% y-o-y ` Crore Domestic Equity & Alternate Assets Quarter 4 Q4FY14 ` Crore Average AUM Q3FY15 (PQ) Full Year Q4FY15 12,922 23,141 27,555 Domestic Fixed Income 77,586 86,673 94,128 Offshore Assets 5,921 7,675 12,006 Total AUM 96,429 1,17,489 1,33, Revenue (Fee Income) Earnings before tax Net Profit Revenue at ` 596 Cr. (19% y-o-y) & EBT at ` 182 Cr. (29% y-o-y) Domestic Market Share Equity Market Share Recognition of strong fund performance Asset Management House of the Year by Money Today-FPCIL Awards 2015 Best Fund House Debt by Morningstar Awards 2015 Birla Sun Life MNC fund won Best Small/Mid Cap Equity fund Morning Star % 5.09% 9.09% 9.20% 9.45% 5.45% 5.27% 5.26% 9.85% 10.09% 5.78% 6.92% FY10 FY11 FY12 FY13 FY14 FY15 40

41 Other Financial Services > Aditya Birla Housing Finance : Book Size at ` 142 Cr. as on 31 st Mar 15 > Aditya Birla Insurance Brokers (General insurance advisory) In FY15, premium placement grew from ` 898 Cr. to ` 1,132 Cr. (26% y-o-y) Revenue at ` 73 Cr. (11% y-o-y) and EBT at ` 27 Cr. (26% y-o-y) > Aditya Birla Money (Broking, Wealth Management & Online Money Management ) Broking : Industry volumes were up by 71% in retail cash equity, up by 50% in retail F&O & lower by 36% in commodities Market share of Aditya Birla Money improved to 2.48% (PY:1.37%) in retail F&O, 0.64% (PY:0.54%) in commodities & 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: Average equity assets under advisory expanded y-o-y by 34% Online Money Management Portal (MyUniverse) : Launched ZipSip the smarter, easier and quicker way of doing SIP > Aditya Birla Private Equity : Funds under management (net) at ` 1,121 Cr. Invested in Wonderla Holidays, City Union Bank, Indian Energy Exchange, Manpasand Beverages, CIBIL & Monte Carlo Fashions in FY15 Aditya Birla Insurance Brokers (General Insurance Broking) Aditya Birla Money (Equity & Commodity Broking) PY CY PY CY PY CY PY CY ` Crore Quarter 4 Revenue Earnings before tax 1 2 (1) Net Profit / (Loss) 1 1 (1) Full Year Aditya Birla Money Mart (Wealth Management) Aditya Birla Capital Advisors (Private Equity) Revenue Earnings before tax (12) 6 (6) Net Profit / (Loss) (12) 6 (6)

42 Madura Fashion & Lifestyle Quarter 4 ` Crore Full Year Revenue 3,226 3, EBITDA Segment EBIT Capital Employed Retail Channel Carpet Area (Million Sq Ft) 1.6 1, ,272 No. of EBOs 2.2 1, , ROACE (Annualised) (%) Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Capex of ` 95 Cr. was incurred during FY15 Capex guidance for FY16 stands at about ` 160 Cr. mainly towards new store launches and renovation of existing stores 42

43 Pantaloons Fashion & Retail Ltd. Quarter 4 ` Crore Full Year Revenue 1,661 1, EBITDA Carpet Area (Million Sq Ft) Customer Reach No. of Stores incl. Factory Outlet (46) (33) Segment EBIT (75) (110) Jun'12 Mar'13 Mar'14 Mar'15 ` 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 Capex of ` 115 Cr. was spent during FY15 Launched 13 new stores in Q4 (25 during the year) FY16 capex guidance stands at about ` 125 Cr. mainly towards launch of new stores Net Working Capital (50) 60 Net Worth Debt 1,050 1,311 43

44 Idea Cellular Quarter 4 ` Crore (Consolidated Results) Full Year 6,975 8,397 Revenue 26,432 31,527 2,273 3,251 EBITDA 8,519 11,281 1,090 1,577 Segment EBIT 3,773 5, Net Profit 1,968 3,193 Net Worth 16,527 23,029 Total Debt 20,635 26,859 Capital Employed 37,162 49,888 ROACE (Annualised) (%) Base of 161 million active subscribers provides a great platform for upgrading voice customers to wireless data services in future Currently, 33.4 million Idea subscribers use its mobile data services, contributing 16.9% of total service revenue in Q4FY15 As of Mar 15, Idea had 102.3% of reported subscribers as VLR (active) subscribers highest in the industry VAS as percentage of service revenue grew to 24.5% in Q4FY15 (PQ: 23.1%, PY: 16.5%) Capex of ` 40.5 billion (excl. spectrum) incurred in FY15. Capex guidance for FY16, (excl. spectrum payout) stands at ` billion 44

45 Jaya Shree Industry Apparels & Textiles industry witnessed subdued consumer spending during H2FY15 Jaya Shree Revenue at ` 1,435 Cr. (10% y-o-y) Linen segment surged by 25% driven by expansion Wool segment de-grew due to poor wool grease demand EBITDA at ` 175 Cr. (2% y-o-y) Higher profitability in linen segment was offset by lower wool combing volumes Quarter 4 ` Crore Full Year Linen Segment Wool Segment Revenue 1,300 1, EBITDA Segment EBIT Capital Employed ROACE (Annualised) (%) Continuous focus on retail expansion and brand promotion to fortify Linen Club fabric brand Opened 19 new Linen Club EBOs during the year to reach a total of 115 EBOs Launched its own apparel line through Linen Club Studio Operating at a sound ROACE of 53% p.a. 45

46 Indo Gulf Fertilisers Industry Due to government policy for urea production beyond 100% quantity as permissible under Pricing mechanism, few urea manufacturers had to take urea plant shutdown during Q4FY15 Indo-Gulf Indo-Gulf had to take urea plant shutdown for 35 days starting 27 th Feb 15, thereby, pulling down earnings from normalised level. The plant resumed operations on 2 nd Apr 15. During last year too, urea plant shutdown was taken for 41 days Quarter Manufactured Urea Sales ('000 MT) 1,034 1, Revenue 2,313 2, ` Crore Manufacturing (Urea, Customised Fertilisers) Trading (Fertilisers, Seeds, Agro-Chemicals) Full Year 1,995 2, (25) (20) EBITDA (30) (28) Segment EBIT ,616 1,641 Capital Employed 1,616 1,641 (8) (7) ROACE (Annualised) (%) 3 7 Revenue grew y-o-y by 11% largely due to pass through of rise in natural gas prices & higher sales of customised fertilisers EBITDA surged y-o-y by 90% to ` 148 Cr. led by improved energy efficiency, higher fixed cost reimbursement as per Government policy and higher sales of pesticides Outstanding subsidy & receivables at ` 1,207 Cr. (PQ: ` 1,109 Cr., Mar 14 : ` 1,176 Cr.) 46

47 Indian Rayon Industry Indian textiles industry witnessed slowdown in H2FY15 with steep fall in demand & prices across all major fibres & yarn. ECU realisation declined y-o-y due to cheaper caustic imports and lower chlorine prices. Q-o-Q, realisation has improved. Indian Rayon Amidst industry slowdown, Indian Rayon posted strong growth in VFY profitability driven by new superfine yarn capacity Total Revenue grew marginally y-o-y to ` 865 Cr. VFY : Higher volumes led by new capacity Chemicals : Softening of ECU realisation & lower caustic volumes due to maintenance shutdown in power plant EBITDA de-grew y-o-y by 11% to ` 197 Cr. Quarter 4 VFY Note 1 : Including captive consumption and inter unit sale 4,516 4,632 Manufactured VFY Sales Volumes (MT) 17,423 18, Revenue (VFY & allied chemicals) ( ` Cr.) Chemicals ` Crore Full Year 20,172 20,716 Caustic Soda Sales Volume (MT) 1 86,758 80, Revenue ( ` Cr.) Total Revenue EBITDA Segment EBIT Capital Employed ROACE (Annualised) (%) VFY : Expansion led higher volumes & realisation drove profitable growth Chemicals : Lower ECU realisation & caustic soda volumes impacted coupled with higher power cost owing to shutdown Operating at an ROACE of 21% p.a. 47

48 Aditya Birla Insulators Industry Insulators industry s domestic sales volume de-grew y-o-y by 12% during Apr 14-Jan 15 (Source : IEEMA) Quarter 4 ` Crore Full Year Long term imposition of anti-dumping duty on imports from China will provide sustainable relief to domestic manufacturers. Aditya Birla Insulators Revenue grew y-o-y by 8% to ` 548 Cr. EBITDA rose by 14% to ` 95 Cr. Higher volumes and increase in realisation (mainly to pass on rise in operating costs) in the substation segment contributed to the earnings growth 11,340 11,564 Sales Volumes (MT) 36,913 38, Revenue EBITDA Segment EBIT Capital Employed ROACE (Annualised) (%) 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. 48

49 49

50 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 50

51 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. 51

52 Annexure IV : Reporting Structure Financial Services Telecom $ # (23.28%) Fashion & Lifestyle Divisions Life Insurance^ Asset Management^ Madura * Pantaloons^ # (72.62%) Jaya Shree* Agri * NBFC & Housing Finance (100%) ^ Rayon * Private Equity (100%) ^ Broking (75%)^ # Wealth management (100%) ^ General Insurance Advisory (50.01%) ^ MyUniverse (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 52

53 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. 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 53