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

Transcription

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

2 Part of the Aditya Birla Group A USD 40 billion Corporation by revenue size, the Aditya Birla Group is in league of fortune 500 Operating in 36 countries in 6 continents with over 53% of revenue flowing 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 ) Anchored by over 136,000 employees belonging to 42 nationalities Trusted by ~ 1.5 million shareholders and over 100 million customers Aluminium VSF Global positioning World s largest aluminium rolling unit World s largest manufacturer Carbon Black World s largest in terms of capacity Cement 9 th largest manufacturer 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 production / sales) Telecom (in terms of wireless revenue market share) Life Insurance (in terms of new business premium) Asset Management (in terms of average AUM) Our Values Integrity, Commitment, Passion, Seamlessness, Speed 2

3 Our Vision To become a premium conglomerate with market leadership across businesses delivering superior value to shareholders on a sustained basis Kumar Mangalam Birla Chairman 3

4 Transformation from a Mfg. company to a premium conglomerate Manufacturing businesses generating surplus cash after meeting capex requirement Entered into Life Insurance JV with Sun Life, Canada Merger of Indo Gulf Fertilisers & Birla Global with Indian Rayon (rechristened as Aditya Birla Nuvo ) Increased stake in Idea from 4.3% to 20.7% in 2005 and to 35.7% in 2006 Expanded financial services portfolio with entry in Private Equity & Broking businesses Timely capacity expansion in Manufacturing businesses / Acquisition of Madura Garments Acquired PSI in 2001 & Transworks in 2003 to foray in the IT-ITeS Sector Financial Services portfolio expanded with merger of Birla Global in ABNL Acquired Minacs, a USD 250 million Canadian BPO Propose to acquire controlling stake in Pantaloons Fashion format of Future Group Timely capital infusion to support growth plans and strengthen balance sheet Entry into service sector businesses to tap growth opportunities 4

5 ABNL : Well positioned to tap growth opportunities Savings led Consumption led Infrastructure & Agriculture led Outsourcing led High rate of savings Rising income levels High rate of capital formation Rising outsourcing trend Growth Drivers Lower penetration of financial services A large young population Steady economic reform regime Highly skilled human capital Growing awareness for financial planning Burgeoning middle class Investor friendly policies Increasing FII & FDI flow Low cost destination Key sectors to benefit Financial Services Telecom, Fashion & Lifestyle, Textiles, Automobiles, Power, Roads, Agriculture IT-ITeS Aditya Birla Nuvo : A large eco-system Touching lives of 120 million Indians Anchored by strong management teams & about 65,000 employees Nationwide presence through over 1 million touch points / channel partners Trusted by about 1.5 lacs shareholders 5

6 A USD 4.5 billion conglomerate Financial Services Telecom $ # (25.29%) IT-ITeS^ (99.85%) Fashion & Lifestyle * Manufacturing Life Insurance^ Asset Management^ NBFC^ Private Equity^ Broking (75%)^ Wealth management^ General Insurance Advisory (50%)^ Leadership position in India Leader Top 3 Top 5 Carbon Black * Agri * Rayon * Insulators * Textiles * * ^ $ Represent Divisions Represent Subsidiaries Represent Joint JV with Sun Life Financial, Canada # Listed, Aditya Birla Group holds 45.92% Note : Percentage figures indicated above represent ABNL s shareholding in its subsidiaries /JV s 6

7 Strongly placed in its businesses Size : Large sizeable player across the businesses Competitive edge : Well positioned vis-à-vis competition Operating Performance : Marching on profitable growth after turnaround Future Prospects : Capturing opportunities across the businesses to achieve next level of growth Financial position : Strong standalone balance sheet supporting growth Return on investment : Earning strong return on investments in most of the businesses 7

8 Financial snapshot : Consolidated Revenue (` Cr.) EBITDA (` Cr.) Net Profit (` Cr.) 8,043 18,188 14,331 15,523 11,375 21,840 1,163 1, ,686 2,685 3, (436) Earnings growing at robust CAGR All the businesses are contributing to the profitable growth During the nine months ended 31 st Dec 12, ABNL posted : Revenue at ` 17,619 Cr. EBITDA at ` 3,012 Cr. Net Profit at ` 894 Cr. 8

9 Achieved revenue growth across the businesses Revenue ( ` Crore) Financial Services 1 Telecom FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Fashion & Lifestyle IT-ITeS Manufacturing FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 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 31.78% from 10 th March 2007 upto 12 th August 2008, at 27.02% upto 1 st March 2010 and at ~ 25.3% thereafter as per AS 27. 9

10 Augmented profitability across the businesses EBITDA ( ` Crore) Financial Services 1 Telecom FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Fashion & Lifestyle IT-ITeS Manufacturing FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Note 1 : Including full figures of Asset Management business. As per AS27, Asset Management biz. 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 31.78% from 10 th March 2007 upto 12 th August 2008, at 27.02% upto 1 st March 2010 and at ~ 25.3% thereafter as per AS

11 On profitable growth trajectory Consolidated Revenue ( ` Crore) 6, Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Consolidated EBITDA ( ` Crore) 1,090 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 11

12 Growth supported by strong Standalone Balance Sheet Standalone Capital Employed Standalone Ratios 2,652 3,058 2,524 3,478 1,415 (` Cr.) 3,910 4,982 3,767 3,044 3,437 4,696 5,436 5,424 5,598 Fixed Assets & Working Capital Long Term Investments Net Debt / EBITDA Net Debt / Equity FY06 FY06 About 60% of standalone capital employed is deployed in long term investments Cash flows generated from manufacturing businesses supported balance sheet Aditya Birla Nuvo, as a conglomerate, is progressing well on the growth path to tap sector opportunities To meet its growth capital requirements, ABNL has issued 16.5 million warrants in May 12 to Promoters / Promoter Group on a preferential basis after being approved by the shareholders Of total equity infusion of ~ ` 1,500 Cr., a sum of ~ ` 375 Cr. received as 25% application money Net of MTM provision ` 104 Cr. w.r.t. fully hedged foreign currency working capital borrowings 12

13 Consolidated Mix FY12 Revenue ` 21,840 Cr. EBIT ` 1,922 Cr. Manufacturing 29% Financial Services 29% Manufacturing 32% Financial Services 28% IT-ITeS 9% Fashion & Lifestyle 10% Telecom 23% IT-ITeS 6% Fashion & Lifestyle 6% Telecom 28% 13

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15 Life Insurance Asset Management NBFC Private Equity Broking Wealth Management General Insurance Advisory Aditya Birla Financial Services (ABFS) To be a leader and role model in financial services sector with a broad based and integrated business AUM crossed ` 100,000 Crore mark and has a revenue size of over USD 1.3 billion Anchored by ~ 17,000 employees & trusted by ~ 5.5 million customers Nationwide presence : Over 1,775 points of presence & about 200,000 agents / channel partners Largest contributor to ABNL s consolidated earnings before tax Contributed 45% in FY12 Life Insurance has started giving dividend. NBFC business is expanding and will require capital infusion for growth ABFS ranks among top 5 private fund managers in India (excl. Banks) & among top 20 (incl. Banks) 15

16 Birla Sun Life Insurance (BSLI) Robust growth in Total Premium Income (` Crore) Robust growth in AUM (` Crore) 19,760 21,110 1,777 3,272 1,965 4,572 2, ,307 1,751 5,506 2,960 2,546 5,677 5,885 2, , FY 07 FY 08 FY 09 FY 10 FY 11 FY12 New Business Premium Renewal Premium 4,020 6,893 BSLI ranks 5 th among private players with a market share of 8% in 9mFY13. 52% 31% 9,168 40% 35% 16,130 46% 47% 45% Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Debt Equity Balanced sales mix : During FY12, non ULIP contributed to 46% (PY: 25%) of individual new business. Strong distribution reach : A nation-wide presence with more than 650 branches, about 139,000 direct selling agents, 5 bancassurance partners and about 200 corporate agents & brokers Turned profitable in FY11 and declared its maiden dividend in FY12. ABNL received `73 Cr. for its 74% holding As on 31 st Mar 12, 13 th month premium persistency is at ~82% and 25 th month premium persistency is at ~77% Embedded Value at ` 4,015 Cr. & VNB margin at 22.8% in FY12 Going Forward : Augmenting product offerings (Recently launched 4 products) besides focusing on persistency, expense management and distribution efficiency in the Life Insurance business 16

17 Birla Sun Life Asset Management (BSAMC) Robust growth in AUM (` Crore) 82,420 66,461 67,668 66,103 16,422 27,865 11,156 16,709 44,552 16,171 28,381 48,657 6,168 42, ,285 15,560 52,902 52,383 50,543 65,998 Equity & Alternate Assets 1 Debt & Liquid Mar'07 Mar'08 Mar'09 Q4FY10 Q4FY11 Q4FY12 Q3FY13 1 Equity AUM (Domestic & Offshore) + PMS + Real Estate Onshore Fund 15 years + journey of continued wealth creation Ranked 4 th in India with market share of 9.8% in Q3FY13 Number 1 fixed income fund manager with 11.5% market share Building alternate assets : Maiden Real Estate Onshore Fund of ` 1,060 Cr. Offshore AUM grew to ~USD 750 million Expanding International Presence : Set up offices in Dubai & Singapore Posted revenue at ` 315 Cr. & EBT at ` 89 Cr. in FY12 Going forward : Growing profitable assets with a thrust on improving distribution efficiency and fund performance in the Asset Management business 17

18 Aditya Birla Finance (NBFC) Closing book size as on 31 st Dec 12 more than doubled y-o-y to reach ~ ` 6,500 Cr. All the segments are contributing to the growth. Capital Market book reached ` 2,500 Cr. mark. Corporate Finance & Infra financing portfolios crossed ` 1,500 Cr. mark each. Loan Against Property / Lease Rental Discounting book crossed ` 800 Cr. Net worth as on 31 st Dec 12 is ` 892 Cr. (PY : ` 535 Cr.) Share Capital of ` 275 Cr. was infused in past one year to support growth. The business also raised tier-ii capital of ` 300 Cr. in Q2FY13 The business is growing at a good pace and will require capital for future growth Going Forward : Having strengthened the management team, focus is on growing book profitably while keeping risk under control NBFC : Book Size (` Crore) 3,425 6, ,850 Mar'09 Mar'10 Mar'11 Mar'12 Dec'12 18

19 Idea Cellular (Telecom) Building sustainable competitiveness while maintaining growth momentum Revenue (` Cr.) EBITDA (` Cr.) 5,135 Rising Market Share 12,398 10,131 15,438 19,489 2,376 3,051 3,621 3, % 12.6% 13.6% 15.0% 4,366 6,720 1,504 Q4FY09 Q4FY10 Q4FY11 Q4 FY12 Ranks among top 10 players globally with total Minutes of Use on network of about 1.4 billion per day Ranks 3 rd in pan India revenue market share at 15% up from 13.6% a year ago. Highest gainer in past 4 years. As on 31 st Dec 12, Idea has around 98.2% of reported subscribers as active subscribers, highest in the industry. With a market cap of ~USD 7 billion, Idea serves a large customer base of about 114 million subscribers Winner of 3G spectrum in 11 service areas which contribute more than 75% of Idea s existing 2G revenue Idea holds 16% stake in the world s largest Indus Towers Strong balance sheet & cash profit to support growth :Standalone Net Debt/EBITDA 2.22 & Net Debt/Equity 0.83 Idea has been free cash flow positive since past five quarters Going Forward : Increasing revenue share in the Telecom business by capitalising on brand!dea besides consolidating its position in voice market & participating aggressively in evolving wireless broadband business. 19

20 Aditya Birla Minacs (IT-ITeS) Diversifying capabilities and building strong order book with a focus on the bottom-line Revenue (` Cr.) 1,677 1,777 1,692 1,530 2,082 EBITDA (` Cr.) , Ranked 6 th among Indian BPO companies by revenue size (Source: NASSCOM) A global solution provider serving > 100 clients through 36 centres in US, Canada, Europe, India & Philippines Employees base of ~19,520 (NA : ~7,574, APAC : 11,946) as on 31 st Dec 12 Turnaround in the bottom-line driven by sites consolidation & cost optimisation measures Generating steady cash profits to fund its capex and working capital requirements Total contract value (TCV) of ~ USD 775 million and USD 730 million sold in FY11 and FY 12 On constant currency basis, revenue grew y-o-y by 10% & Operating EBITDA by 29% during 9mFY13 Going Forward : Sustaining revenue growth from both existing as well as new clients in the IT-ITeS business while focusing on operational efficiencies to push margins upwards. 20

21 Madura Fashion & Lifestyle Capitalising on brand leadership and enhancing channel productivity to achieve profitable growth Revenue (` Cr.) 1,811 2,243 EBITDA (` Cr.) ,026 1,116 1, (4) (158) Madura Fashion & Lifestyle is the largest premium branded apparel player in India Leadership built by Strong Brands : Louis Philippe, Van Heusen, Allen Solly, Peter England. Retailing international brands under The Collective. Retailing branded apparels and accessories through 1,233 exclusive brand outlets spanning across 1.8 million sq. ft. besides reaching customers through more than 1,400 departmental stores and MBOs Revenue has almost doubled in just two years to cross ` 2,200 Cr. mark while capital employed is managed at similar levels This has led to expansion of ROACE to 21% in FY12 from 11% in FY11 Going Forward : Leveraging brand leadership, expanding retail space and strengthening channel relationships in the Fashion & Lifestyle business 21

22 Pantaloons Transaction Update ABNL, through its subsidiary Peter England Fashions & Retail Ltd. (PEFRL) invested ` 800 Cr. through Optionally Fully Convertible Debentures (OFCDs) in Pantaloon Retail India Ltd. (PRIL) The Board of Directors of PRIL and PEFRL approved the Scheme of Arrangement The Board of PEFRL approved the share entitlement ratio in relation to the demerger [1 equity share of ` 10/- each in PEFRL for 5 equity shares (incl. DVR shares) of ` 2/- each held in PRIL] Post approval by stock exchanges, demerger scheme was filed with the Hon ble Bombay High Court The shareholders of PRIL approved the scheme in their meeting held on 6 th Dec 12 The Competition Commission of India approved the transaction vide its order dated 21 st Dec 12 PRIL, through court scheme of arrangement, will transfer all undertakings, business activities and operations pertaining to the Pantaloons Fashion Format to PEFRL (the resulting company). A debt of ` 1,600 Cr. will also be transferred to the resulting company. PRIL will redeem ` 800 Cr. OFCDs and the redemption proceeds will be utilised by the resulting company to reduce its debt. The Appointed Date of the transfer is 1 st July 2012 Post demerger and on effectiveness of the Scheme, the resulting company will issue equity shares to shareholders of PRIL as per share entitlement ratio The shareholding of ABNL, through its subsidiary, in the resulting company, will be 50.09% As part of the Scheme of Arrangement, ABNL and/or its Affiliates intend making a voluntary open offer to the other shareholders of the resulting company. On receipt of requisite approvals, the equity shares of the resulting company will be listed on the National Stock Exchange of India and The Stock Exchange, Bombay Status Post court approval 22

23 Jaya Shree Textiles Jaya Shree Textiles (JST) is the domestic market leader in Linen segment Branding & promoting linen fabric under Linen Club Focus on high margin linen fabric OTC segment Contributes to 59% of total linen fabric sales Revenue (` Cr.) ,046 One of the largest player in Wool segment in India Revenue crossed ` 1,000 Cr. mark ROACE improved considerably: Earnings doubled in past 2 years while capital employed is managed at 1/3rd level. To capitalise on buoyant demand in the linen segment, JST is planning to expand linen yarn capacity from 2,300 TPA to 3,400 TPA & linen fabric processing capacity from 7.3 million meters to 10.1 million meters at capex of ` 100 Cr. EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) 11% 11% 9% 12% 13% 13% % % 15% 9% 15% 32% 88 23

24 Indo Gulf Fertilisers (Agri-business) Acute deficit of urea in India Approx. 24% of the demand is imported Indo Gulf Fertilisers has 10-20% market share in the target markets of Uttar Pradesh, Bihar, ktijharkhand and West Bengal Strong brand Birla Shaman is preferred choice of farmers Also offering value adding variety Neem coated Krishi Dev Revenue (` Cr.) Sales ('000 MT) ,250 1,244 1, ,107 A complete agri-solutions provider Fertilisers, Seeds, Pesticides Revenue crossed ` 2,000 Cr. mark in FY12. Achieved highest ever production and sales. Capital employed has increased primarily due to increased in working capital on account of rise in urea prices, commencement of trading of imported fertilisers and slower recovery of subsidy The Board of Directors has approved proposal for urea brownfield expansion, subject to Govt. approvals Proposed 3,850 tons per day (~1.3 million TPA), will more than double the existing capacity EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) 17% % % % % % 29% % 38% % % % 24

25 Urea Brownfield Expansion proposal Background Total Urea consumption in India at ~ 29 million MT is growing at ~ 4% p.a. India imports more than 25% of its Urea requirements (~ 7.8 million MT in FY12 ) To reduce mounting urea subsidy bill in the national interest, the Government of India notified New Investment Policy (NIP) for Urea on 2nd January, Objective is to cut down urea imports by promoting indigenous capacity expansion. Brownfield Expansion plan : Indo Gulf Fertilisers The Board of Directors of ABNL has approved proposal for Urea brownfield expansion by 3,850 TPD (~1.3 million TPA) at existing Indo-Gulf fertilisers complex in Jagdishpur (U.P.) under the New Investment Policy subject to requisite Government approvals Land is available at existing plant location in Jagdishpur (U.P.) The proposed plant at Jagdishpur will be located in the heart of Indo-Gangetic plains, which gives a logistic advantage. Plant will be strategically located near to the urea deficit North Eastern India region Birla Shaktiman enjoys top of the mind recall among farmers in the area. Major regulatory approvals in place : Environmental, Pollution Control, Water Supply Final approval for setting up of the proposed urea plant is awaited from Department Of Fertilisers Approval for allocation of natural gas is awaited from Ministry of Petroleum & Natural Gas Project completion period : About 3 years Project Capex : ~ ` 4,000 Cr. 25

26 Indian Rayon (VFY and Chemicals) 2 nd largest producer of VFY in India with ~39% domestic production share Largest Indian VFY exporter for consecutive seventh year with >50% share in VFY exports from India in FY12 Integrated facilities Cost effective 34.5 MW captive power plant VFY has a niche market globally : Premium is driven by quality and value added yarns Revenue (` Cr.) VFY Sales Volume (MT) Rise in Caustic soda prices and VFY realization contributed to surge in profitability during FY 12. Expanding its presence in fine and superfine VFY segment using Spool Technology from Germany at a capex of ~ ` 270 Cr. by Q4FY13. Caustic soda expansion by 125 TPD is planned by FY14 at a capex of ` 155 Cr. EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) 27% 26% 23% % % % % % 20% % % % 26

27 Hi-Tech Carbon Aditya Birla Group is largest player globally (Capacity : 2 million MTPA) Operating in 12 countries through 17 plants globally Achieving synergies through marketing under brand Birla Carbon & central procurement of feed stock (CBFS) Indian operations are through ABNL which is 2 nd largest in India with ~39% production share in FY12 Lowest cost producer in India, having three plants Deriving value contribution by energy sales Carbon Black imports increased by more than 50% in FY12 affecting capacity utilisation of domestic players. Finance Ministry has imposed safeguard duty of 30% on carbon black imports from China from 5 th Oct 12 to 4 th Oct 13 and then 25% till 31stDec 13. The duty will apply on carbon black used in rubber applications (incl. tyres). 25% Revenue (` Cr.) Sales ('000 MT) EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) ,096 1, ,588 1,943 18% 18% % 50 22% 16% % % 23% % 27% 942 1,235 1,365 20% 13% 27

28 Aditya Birla Insulators Used in power generation, Transmission & distribution (T&D) and by Original Equipment Manufactures (OEMs) Aditya Birla Insulators is largest domestic producer & 4 th largest globally Capacity 45,260 TPA at two plants Power Grid corporation of India and State Electricity Boards (SEBs), ABB, Areva, Siemens etc. are amongst major customers Deferment of projects and dumping from China impacted domestic industry. Revenue (` Cr.) Sales Volumes (MT) Finance Ministry has imposed safeguard duty of 35% on insulators imports from China from 20 th Dec 12 to 19 th Dec 13 and then 25% till 31stDec 13. EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) 22% 54 34% % 27% % % % 58% % % % 12% 28

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30 Segmental Revenue ( ` Crore) Full Year Revenue Nine Months ,392 6,131 Aditya Birla Financial Services* 4,258 4,471 5,691 5,534 Life Insurance 3,399 3, Other Financial Services * ,933 3,918 Telecom (Nuvo's 4,146 3,586 2,243 1,811 Fashion & Lifestyle 1,865 1,667 2,082 1,692 IT-ITeS 1,851 1,508 6,244 4,689 Manufacturing 5,548 4,652 1,943 1,588 Carbon Black 1,505 1,442 2,107 1,244 Agri-business 2,274 1, Rayon Insulators , Textiles (54) (53) Inter-segment Elimination (50) (39) 21,840 18,188 Consolidated Revenue 17,619 15,846 * Other Financial Services include Asset Management (proportionately consolidated at 50%, being a 50:50 JV till 9th Oct 12 and thereafter consolidated as subsidiary since ABFS holds 51% w.e.f. 10 th Oct 12), NBFC, Private Equity, Broking, Wealth Management & General Insurance Idea is consolidated at ~25.3% 30

31 Segmental EBIT Full Year EBIT Nine Months ( ` Crore) Aditya Birla Financial Services* Life Insurance * Other Financial Services include Asset Management (proportionately consolidated at 50%, being a 50:50 JV till 9th Oct 12 and thereafter consolidated as subsidiary since ABFS holds 51% w.e.f. 10 th Oct 12), NBFC, Private Equity, Broking, Wealth Management & General Insurance Advisory. Interest cost of NBFC business, being an operating expense as per AS 17, is deducted from Segmental Idea is consolidated at ~25.3% Other Financial Services * Telecom (Nuvo's Fashion & Lifestyle IT-ITeS Manufacturing Carbon Black Agri-business Rayon Insulators Textiles ,922 1,578 Segmental EBIT 1,701 1,435 31

32 Consolidated Profit & Loss ( ` Crore) Full Year Nine Months Consolidated Profit & Loss Account ,840 18,188 Revenue 17,619 15,846 3,259 2,685 EBITDA 3,012 2, Less : NBFC Interest expenses Less : Other Interest Expenses ,422 2,136 EBDT 2,170 1,815 1, Less : Depreciation ,330 1,195 Earnings before Tax (before exceptional items) 1,256 1,004 (104) (104) Add : Exceptional Gain / (Loss)* - - 1,226 1,091 Earnings before Tax (after exceptional items) 1,256 1, Less : Provision for Taxation (Net) Less : Minority Interest Net Profit * A provision of ` 104 Cr. has been made during towards entry tax liability (largely related to previous years, earlier recognized as contingent liability) w.r.t. Renukoot (U.P.) plant of the Carbon Black business; the matter is sub-judice. In , Aditya Birla Money and Aditya Birla Money Mart, subsidiaries of ABNL, had borne a one-time exception loss of ` 104 Cr. 32

33 Standalone Profit & Loss ( ` Crore) Full Year Profit & Loss Account Nine Months ,433 6,447 Revenue 7,335 6,280 1, EBITDA Interest Expenses EBDT Depreciation Earnings before Tax (before exceptional items) (104) - Add : Exceptional Gain / (Loss)* Earnings before Tax (after exceptional items) Provision for Taxation (Net) Net Profit * A provision of ` 104 Cr. has been made during towards entry tax liability (largely related to previous years, earlier recognized as contingent liability) w.r.t. Renukoot (U.P.) plant of the Carbon Black business; the matter is sub-judice. 33

34 Balance Sheet ( ` Crore) Standalone Consolidated Dec-12 Mar-12 Mar-11 Balance Sheet Dec-12 Mar-12 Mar-11 6,294 5,679 5,401 Net Worth 8,924 7,517 6, Minority Interest ,671 4,457 3,287 Debt 10,569 9,224 7,763 NBFC borrowings 5,537 2,973 1, Deferred Tax Liabilities (Net) ,124 10,294 8,862 Capital Employed 26,004 20,328 16, Policyholders' funds (Incl. funds for future appropriation) 21,733 19,964 18,977 11,124 10,294 8,862 Total Liabilities 47,737 40,292 35,493 2,135 1,976 1,858 Net Block (Incl. Goodwill) 13,279 12,531 11,883 2,582 2,012 1,434 Net Working Capital 9,192 4,600 2,080 6,153 5,598 5,424 Long Term Investments Life Insurance Investments 23,351 21,110 19, Policyholders' Investments 21,871 20,095 19, Shareholders' Investments 1,480 1, Cash Surplus & Current Investments 1,560 1,733 1, Book Value (`) ^ Net Debt / EBITDA (x) Net Debt / Equity (x) ,439 10,723 9,244 Market Capitalisation - NSE Note : NBFC book of ~ ` 6,500 Cr., ~` 3,425 Cr. and ~1,850 Cr. is included in Consolidated Net Working Capital in Dec 12, Mar 12 and Mar 11 respectively *Excluding MTM loss of ` 16 Cr. as on 31 st Dec 12 and ` 104 Cr. as on 31 st Mar 12 w.r.t. fully hedged foreign currency working capital debt 34

35 Standalone Capex Plan ( ` Crore) Capex Plan Spent Spent in Balance to be spent in till Mar 12 9mFY13 Q4FY13 FY14 /FY15 Major Projects Rayon (VFY & Caustic) Agri Textiles Fashion & Lifestyle (EBOs) Other Capex ,

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37 Aditya Birla Financial Services Full Year Nine Months ` Crore Revenue 5,691 5,534 Birla Sun Life Insurance 3,399 3, Birla Sun Life Asset Management Aditya Birla Finance Aditya Birla Money Aditya Birla Money Mart Aditya Birla Insurance Brokers Aditya Birla Capital Advisors (PE) (5) (9) Elimination (4) (4) 6,550 6,313 Total Revenue 4,353 4, Earnings before tax Net Profit before exceptional items (104) Exceptional Gain / (Loss)* Net Profit Note : 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 9 th Oct 12. Thereafter, it is consolidated as subsidiary since ABFS holds 51% w.e.f. 10 th Oct

38 Birla Sun Life Insurance Full Year Nine Months ` Crore New Business Premium 1,250 1,644 Individual Business Group Business ,926 2,080 New Business Premium (Gross) 1,143 1,294 3,959 3,597 Renewal Premium (Gross) 2,390 2,825 5,885 5,677 Premium Income (Gross) 3,533 4,118 (261) (166) Less : Reinsurance ceded & Service tax (227) (186) 5,624 5,511 Premium Income (Net) 3,306 3, Other Operating Income ,691 5,534 Revenue 3,399 3, Earnings before tax Net Profit ,450 2,450 Capital 2,450 2,450 21,110 19,760 Assets under management 23,351 19,132 38

39 Birla Sun Life Asset Management Average AUM ` Crore Q3FY13 Q4FY12 Equity 10,981 10,631 Debt & Liquid 65,998 50,543 Domestic AUM 76,978 61,174 Off shore 3,844 3,390 PMS Real Estate Fund 1,060 1,078 Full Year Nine Months ` Crore Revenue (Fee Income) Revenues Earnings before tax Net Profit Birla Sun Life Asset Management Total AUM 82,420 66,103 NBFC : Aditya Birla Finance Full Year Nine Months ` Crore Revenue Earnings before tax Net Profit

40 Idea Cellular (Telecom) A pan India player with operations in all 22 service areas Revenue (` billion) Subscribers (million) Robust growth in EBITDA (` billion) EBITDA grew by 32% y-o-y in FY Net Profit (` billion) FY06 Cell Sites: Capacity grew multifold Added 14 service areas in past five years ,015 66,187 73,668 4,763 10,114 49,860 24,793 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 FY06 Strong Balance Sheet (Figures in ` billion) Robust growth in MOUs (billion minutes) Total Debt FY Net Worth Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 40

41 Idea Cellular (Telecom) Full Year Nine Months ` Crore ,489 15,438 Revenue 16,380 14,144 5,135 3,903 EBITDA 4,380 3,772 2,111 1,393 Segment EBIT 1,763 1, Net Profit ,050 12,300 Net Worth 14,100 12,805 13,337 12,070 Total Debt 14,932 13,076 26,387 24,370 Capital Employed 29,031 25,881 41

42 Madura Fashion & Lifestyle EBOs (Nos.) Retail Space (Million Sq. Ft.) ,129 1,233 Mar'10 Mar'11 Mar'12 Dec'12 Full Year Nine Months ` Crore ,243 1,811 Revenue 1,865 1, EBITDA Segment EBIT Capital Employed ROACE (Annualised) (%) Note : Madura exited distribution agreement with Esprit and closed all Esprit stores in 9mFY13. EBITDA from continuing operations (i.e., excluding Esprit) is ` 174 Cr. and ` 142 Cr. in 9mFY13 and 9mFY12 respectively 42

43 Aditya Birla Minacs (IT-ITeS) Revenue Mix IT-ITeS (FY12) Mfg. 56% TIME 28% BFSI 11% Others 5% Full Year Nine Months ` Crore ,733 19,615 Employees (Nos.) 19,520 20,230 2,082 1,692 Revenue 1,851 1, EBITDA Segment EBIT Net Profit Note : TIME Telecom, Technology, Infrastructure, Media & Entertainment; BFSI Banks, Financial Services & Insurance 43

44 Annexure III : Shareholding Pattern & Market Cap Category Trusted by 145,614 shareholders Over 97% of shares are in dematerialised form Face value of ` 10 per share For analysts coverage on ABNL visit : As on 31st Dec'12 No. of No. of Shares Shareholding Shareholders held (in million) (%) Promoter & Promoter Group* % Foreign Institutional Investors % Domestic Institutional Investors % Non-Institutional Investors 145, % GDRs - Public % Total 145, % * Including million GDRs representing 1.26% holding Market Cap & Share Price Market Cap (` Crores) Closing Share price (`) ,265 12,439 9,992 9,336 10,723 9,244 6,246 4,227 2,409 Mar'05 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Dec'12 Source : NSE website Stock Code BSE : NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IB / ABNL IN / IRIG LX 44

45 Annexure IV : Board of Directors & Management Team Board of Directors Mr. Kumar Mangalam Birla, Chairman Mrs. Rajashree Birla Mr. B. L. Shah Mr. P. Murari (Independent) Mr. B. R. Gupta (Independent) Ms. Tarjani Vakil (Independent) Mr. S. C. Bhargava (Independent) Mr. G. P. Gupta (Independent) Mr. Tapasendra Chattopadhyay (Independent) Dr. Rakesh Jain, Managing Director Business Head/Director Dr. Rakesh Jain Mr. Ajay Srinivasan Mr. Pranab Barua Mr. Thomas Varghese Mr. Lalit Naik Dr. Santrupt Misra Mr. Himanshu Kapania Business Agri-business Insulators IT-ITeS Financial Services Fashion & Lifestyle Textiles VFY & Chemicals Carbon Black Telecom Mr. Lalit Naik, Dy. Managing Director Mr. Sushil Agarwal, Whole Time Director Whole Time Director & Chief Financial Officer Mr. Sushil Agarwal 45

46 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 Regd. Office: Indian Rayon Compound, Veraval (Gujarat) Corporate Office: 4th Floor A Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai Website: or or nuvo-investors@adityabirla.com 46