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 Aditya Birla Nuvo A Snapshot 3 15 Our businesses : Financial Services 17 Fashion & Lifestyle 27 Telecom 33 IT-ITeS 36 Manufacturing 38 Annexure

3 Part of the Aditya Birla Group The Aditya Birla Group is in league of fortune 500 A USD 42 billion Corporation by revenue size and USD 29 billion Group by Market Cap Operating in 36 countries in 6 continents with over 50% 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 -2011) Anchored by over 136,000 employees belonging to 42 nationalities Trusted by ~ 1.5 million shareholders and over 125 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 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 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 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 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 Revenue Aditya Birla Nuvo : A large eco-system Businesses 5 De-risking through portfolio of 15 businesses representing varied sectors of Indian Economy Brands ~ 6 ~30 Customers < 1 million Touching lives of 125 million Indians Employees ~ 13,500 Anchored by strong management teams & about 69,000 employees 5

6 Transformation from a Manufacturing Company : Acquisition of Pantaloons Divestment of Carbon Black business 2006 : Became largest shareholder in Idea 2005 : Merger of Agri and other Financial Services in ABNL 2001 : Foray in Life Insurance business through JV with Sun Life Canada 2000: Foray in Fashion & Lifestyle biz. through acquisition of international brands Invested ~ USD 1.5 billion over these years to support growth 6

7 to a USD 4.75 billion conglomerate Financial Services Telecom $ # (25.25%) IT-ITeS^ (99.85%) Fashion & Lifestyle Manufacturing Life Insurance^ Asset Management^ Madura * Pantaloons^ (67.95%) Agri * Rayon * NBFC^ Textiles * Insulators * Private Equity^ Broking (75%)^ Wealth management^ General Insurance Advisory (50.01%)^ Leadership position in India Leader Top 3 Top 5 * ^ $ Represent Divisions Represent Subsidiaries Represent Joint JV with Sun Life Financial, Canada # Listed, Aditya Birla Group holds 45.85% Note : Percentage figures indicated above represent ABNL s shareholding in its subsidiaries /JV s 7

8 Leadership position across businesses in India Sector Market Position Brand Financial Services Among top 5 fund managers (excl. LIC) Fashion & Lifestyle Largest premium branded apparel player Largest linen manufacturer Telecom Among top 3 cellular operators by revenue market share Agri Business Rayon Insulators 2 nd best energy efficient urea plant 2 nd largest manufacturer of VFY Largest insulators manufacturer IT-ITeS Ranks among top 10 Indian BPO companies by revenue size 8

9 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 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 9

10 Financial snapshot : Consolidated Revenue (` Cr.) EBITDA (` Cr.) 25,490 4,142 11,375 14,331 15,523 18,188 21,840 1, ,686 2,685 3,259 Earnings growing at robust CAGR Net Profit (` Cr.) All the businesses are contributing to the profitable growth ,059 With Idea and Birla Sun Life insurance declaring dividend, ABNL has started generating return on its long term investments (436) 10

11 Consolidated Mix FY13 Revenue 1 EBIT 1 IT-ITeS 10% Manufacturing 18% Fashion & Lifestyle 21% Financial Services 27% Telecom 24% IT-ITeS 8% Fashion & Lifestyle 14% Manufacturing 17% Telecom 29% Financial Services 32% Note 1 : Revenue and EBIT Mix is without Carbon Black business. Having received shareholders approval, ABNL has accounted for slump sale of the Carbon Black business w.e.f. 1st Apr 13 11

12 Achieved revenue growth across the businesses Revenue ( ` Crore) Financial Services 1 Telecom Fashion & Lifestyle 3 IT-ITeS Manufacturing 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. Note 3 : Represents Branded apparels & Accessories (Madura & Pantaloons) and Textiles. 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 Agri, Rayon and Insulators. Having received shareholders approval, ABNL has accounted for slump sale of the Carbon Black business w.e.f. 1st Apr 13 12

13 Augmented profitability across the businesses EBITDA ( ` Crore) Financial Services 1 Telecom Fashion & Lifestyle 3 IT-ITeS Manufacturing 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 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. Note 3 : Represents Branded apparels & Accessories (Madura & Pantaloons) and Textiles.. 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 Agri, Rayon and Insulators. Having received shareholders approval, ABNL has accounted for slump sale of the Carbon Black business w.e.f. 1st Apr 13 13

14 Growth supported by strong Standalone Balance Sheet Standalone Capital Employed (` Cr.) 5,157 2,915 4,696 3,767 3,437 3,044 7,616 5,598 5,857 5,424 4,982 5,436 Fixed Assets & Working Capital Long Term Investments Standalone Ratios Net Debt / EBITDA Net Debt / Equity Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Sep'13 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Sep'13 Strong balance sheet : Net Debt to 2.1x and Net Debt to 0.41x as on 30 th Sep 13 Despite more than 70% of standalone capital employed being deployed in long term investments Led by reduction in debt on account of slump sale of Carbon Black business w.e.f. 1 st Apr 13 Dividend / buyback proceeds of ` 294 Cr. from BSLI & realisation of subsidy in Agri business also contributed Strengthening of the balance sheet will support ABNL s investment and capex plans Equity infusion of ` 671 Cr. by promoters in Nov 13 on conversion of remaining 9.82 million warrants Investment plan includes funding growth capital requirement of NBFC business 14

15 Anchored by a strong Management Team Board of Directors The Company has a balanced Board, comprising of 3 Executive, 3 Non-Executive and 6 Independent 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/Director Dr. Rakesh Jain Mr. Ajay Srinivasan Mr. Pranab Barua Mr. Thomas Varghese Mr. Lalit Naik Mr. Himanshu Kapania Business Sector Head - Agri, Insulators, Chemicals IT-ITeS Financial Services Fashion & Lifestyle (Madura & Pantaloons) Textiles VFY, Chemicals, Agri, Insulators Telecom 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 and 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., GE, Prudential Corporation Asia, Hindustan Unilever, Reckitt Whole Time Director & Chief Financial Officer Benckiser etc. Mr. Sushil Agarwal 15

16 16

17 Aditya Birla Financial Services 17

18 Aditya Birla Financial Services (ABFS) Ranks among top 5 fund managers in India (excl. LIC) Funds under ~USD 20 billion Revenue of ~USD 1.2 billion Anchored by ~14,750 employees & trusted by ~5 mn customers Nation wide presence through ~1,550 branches / touch points and ~160,000 agents / channel partners Strong growth in profitability Generated return on average capital employed of 31% in FY13 Funds under Management 1 Revenue 2 2 EBITDA Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Note 1 : Includes AUM of Life Insurance, Private Equity and quarterly AAUM of Asset Management business Note 2 : 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. 18

19 Aditya Birla Financial Services (ABFS) Gained market share across the businesses Business Parameter FY12 FY13 Life Insurance Private sector s new business premium 7.8% 8.0% Asset Management Domestic avg. AUM 9.2% 9.4% Non-life Insurance Advisory Non-life industry premium ~0.5% ~0.9% Broking Retail cash equity broking 1.16% 1.50% Strong growth in lending book and assets under management Business Parameter FY12 FY13 (` Crore) (` Crore / y-o-y growth) Life Insurance AUM (Y-o-Y growth%) 21,110 22,929 (+9%) NBFC Book Size (Y-o-Y growth%) 3,425 8,000 (+135%) Asset Management Avg. AUM - Q4 (Y-o-Y growth%) 66,082 83,451 (+26%) Wealth Management Avg. assets under advisory 14,000 16,500 (+18%) Non-life Insurance Advisory Premium placed (Y-o-Y growth%) (+108%) 19

20 Aditya Birla Financial Services (ABFS) Sound fund performance in Asset Management and Life Insurance businesses ` Crore Full Year Capital Infusion to support growth in NBFC Lending book grew from ` 900 Cr. in Mar 10 to reach ` 8,300 Cr. in Sep 13 A sum of ` 875 Cr. was invested during this period years to support growth Returning surplus funds to the shareholders by Birla Sun Life Insurance (BSLI) Birla Sun Life Insurance turned profitable in FY11 Distributed interim dividend of ` 98 Cr. in FY12 and ` 197 Cr. in FY13 Distributed final dividend of ` 118 Cr. in Jul 13 and ` 280 Cr. through buyback of shares in Q1FY14 This will support ABNL s capital commitments towards the Financial Services business Revenue Birla Sun Life Insurance 5,037 5,691 Birla Sun Life Asset Management Aditya Birla Finance Aditya Birla Money Aditya Birla Money Mart Aditya Birla Insurance Brokers Aditya Birla Capital Advisors (PE) Elimination (6) (5) Revenue 6,390 6,550 Earnings before tax 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

21 Birla Sun Life Insurance (BSLI) Growth in Total Premium Income Growth in AUM (` Crore) 4,572 3,272 2,821 1,965 1,307 1,751 (` Crore) 5,506 5,677 5,885 2, ,960 3, ,546 5, New Business Premium Renewal Premium 52% 9,168 6,893 40% 35% 16,130 46% 19,760 47% 21,110 45% 22,929 Debt 41% Equity FY 08 FY 09 FY 10 FY 11 FY12 FY13 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 BSLI ranks 5 th among private players with a market share of 8% in FY13. Balanced sales mix : During FY13, non ULIP contributed to 56% (PY: 46%) of individual new business. Strong distribution reach : A nation-wide presence with more than 600 branches, over 100,000 direct selling agents, 4 key bancassurance partners and more than 150 corporate agents & brokers As on 31 st Mar 13, 13 th month premium persistency is at ~81.3% & 25 th month premium persistency at ~76.6% Embedded Value at ` 3,687 Cr. & VNB margin at 16.6% in FY13 Going Forward : Augmenting product offerings and strengthening sales relationships to gain market share besides focusing on persistency and expense management 21

22 Movement of Embedded Value FY , , ,687 2,978 In-force Business Value 2,428 2,428 1,037 Adjusted Net worth 1,626 1, EV Economic Variance incl. Unwinding VNB* Expense Overrun Operating Variance - Assumptions Operating Variance - Experience EV (before dividend distribution) Dividend & DDT EV * Value of New Business margin, as % of Individual APE (Annual Premium Equivalent) is 16.6% for

23 Birla Sun Life Asset Management (BSAMC) Growth in AUM (` Crore) 66,461 67,668 66,082 83,451 17,167 86,849 17,512 Equity & Alternate Assets 1 44,552 16,171 28,381 48,657 6,168 42, ,285 15,539 52,902 52,383 50,543 66,284 69,336 Debt & Liquid Mar'08 Mar'09 Q4FY10 Q4FY11 Q4FY12 Q4FY13 Q1FY14 1 Equity AUM (Domestic & Offshore) + PMS + Real Estate Onshore Fund 17 years + journey of continued wealth creation Ranked 4 th in India with market share of 9.4% in Q4FY13 Registered 2nd highest y-o-y growth rate among top 5 players Building alternate assets : Maiden Real Estate Onshore Fund of ` 1,060 Cr. Expanding International Presence : Set up offices in Dubai & Singapore Offshore AUM grew to ~USD 900 million Posted revenue at ` 405 Cr. & Net profit at ` 73 Cr. in FY13 Going forward : Growing profitable assets with a thrust on improving distribution efficiency and fund performance 23

24 Financials Birla Sun Life Insurance ` Crore New Business Premium Individual Business 1,048 1,250 Group Business New Business Premium (Gross) 1,837 1,926 Renewal Premium (Gross) 3,380 3,959 Birla Sun Life Asset Management Average AUM ` Crore Q4FY13 Q4FY12 Equity 10,860 10,631 Debt & Liquid 66,284 50,543 Domestic AUM 77,144 61,174 Premium Income (Gross) 5,216 5,885 Birla Sun Life Asset Management Off shore 4,600 3,368 Less : Reinsurance ceded & Service tax (313) (261) Premium Income (Net) 4,903 5,624 Other Operating Income Revenue 5,037 5,691 Earnings before tax Net Profit Capital 2,450 2,450 Assets under management 22,929 21,110 PMS Real Estate Fund 1,063 1,078 Total AUM 83,451 66,082 ` Crore Revenue (Fee Income) Earnings before tax Net Profit

25 Aditya Birla Finance (NBFC) Closing book as on 30 th Sep 13 grew by 61% y-o-y to reach ~ ` 8,300 Cr. All the segments are contributing to the growth Net worth as on 30 th Sep 13 is ` 1,381 Cr. (Mar 12: ` 628 Cr.) Share Capital of ` 575 Cr. was infused in past 18 months to support growth. The business is growing at a good pace and will require further capital for future growth Scaling up the book size while keeping risk under control Posted revenue at ` 713 Cr. & Net profit at ` 100 Cr. in FY13 Key business metrics H1FY13 (PY) H1FY14 (CY) Net Interest Income (incl. fee income) (%) 5.8% 5.1% Opex to NII Ratio (%) 44% 30% Return on Avg. Net Worth (p.a.) (%) 12.7% 13.7% Return on Avg. Assets (p.a.) (%) 2.0% 1.9% Gross NPA (as % of total loans & advances) 1.6% 1.9% Net NPA (as % of total loans & advances) 1.3% 1.3% Revenue (` Crore) Net Profit (` Crore) Net Worth (` Crore) 769 1,381 Growth in Lending book (` Crore) ~ 8,000 ~ 8,300 Borrowings (` Crore) 4,547 7,068 Leverage (x) 5.92x 5.12x ~ 3,425 1,850 ~ ~ ~ Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Sep'13 Capital Infusion (` Crore) Lending book as on 30 th Sep 13 : Break-up Others 2% Mortgage* 23% * LAP / LRD & Construction Finance Corporate Finance 19% Capital Market 29% Infra Financing 27% 25

26 Other Financial Services Aditya Birla Private Equity : Of ` 1,179 Cr. corpus, ABPE has deployed / committed ~60% of the deployable surplus ABPE Fund I (Size : ` 881 Cr.) has invested in Anupam Industries, Bombay Stock Exchange, Credit Analysis & Research Ltd., GEI Industrial systems, Alphion India Pvt. Ltd., Trimax IT Infrastructure & Services and Ratnakar Bank Sunrise Fund (Size : ` 299 Cr.) : Investment made in SMS Paryavaran Ltd., Olive Bar and Kitchen Ltd. and Tree House Education & Accessories Ltd. Aditya Birla Money : is a retail broking company with nationwide network of more than 900 touch points (including franchisees) serving over 300,000 customers across more than 150 cities Aditya Birla Money Mart : A large corporate mutual fund distributor in India having Assets under Advisory of about ` 100 billion (Sep 13) and a nationwide presence with 21 branches and ~16,000 channel partners Aditya Birla Insurance Brokers : A leading non-life insurance broking company in India. The premium placement more than doubled year on year to ` 634 Crore in FY13 ` Crore Aditya Birla Capital Advisors (Private Equity) Aditya Birla Money (Broking) Aditya Birla Money Mart (Wealth Management) Aditya Birla Insurance Brokers (General Insurance Advisory) Revenue Earnings before tax 9 6 (15) (19) (2) (21) 16 9 Net Profit / (Loss) 6 4 (15) (18) (2) (21)

27 Fashion & Lifestyle 27

28 Fashion & Lifestyle The largest branded apparel player in India selling one apparel every second Largest manufacturer of linen fabric in India Nationwide reach through a large controlled retail presence of 1,587 stores spanning across 4.1 million sq. ft. as on 30 th Sep 13 Besides, reaching customers through more than 4,750 MBOs & Department Stores. Combined revenue (annualised) 1 of ~USD 1 billion Business EBOs / Stores Retail Space (million sq. ft.) Madura 1, Pantaloons (incl. Factory Outlets) Jayashree Textiles (Linen Club) , Generated return on operating capital 25% in FY13 Revenue 1 Revenue mix 1 (FY13) EBITDA Jayashree 23% Pantaloons 26% Madura 51% (For 9 months Jul 12-Mar 13) 1 FY13 includes nine months financials of Pantaloons Fashion business acquired w.e.f. the appointed date 1 st July FY13 EBITDA excludes interest income of ` 62 Cr. on current investments to make performance comparable 28

29 Madura Fashion & Lifestyle Revenue (` Cr.) EBITDA (` Cr.) 1,026 1,116 1,251 1,811 2,239 2, (4) (158) Madura Fashion & Lifestyle is the largest branded apparel player in India Strong Brands : Louis Philippe, Van Heusen, Allen Solly, Peter England, Collective, Plant Fashion, People Louis Philippe & Van Heusen are the best selling brands in India EBITDA margin of brands enhanced to 11.5% in FY13 (PY:10.2%) Revenue doubled in past 3 years to cross ` 2,500 Cr. mark CAGR of 26% while capital employed is managed at similar levels leading to ROACE expansion from 11% in FY11 to 29% in FY13 Expanding retail channel to strengthen market leadership Retail Space (Million Sq Ft) ,129 Retail Channel ,272 No. of EBOs ,405 Besides these EBOs, Madura is reaching customers through more than 1,750 MBOs & Department Stores Mar'11 Mar'12 Mar'13 Sep'13 29

30 Madura Fashion & Lifestyle Channel-wise revenue Mix : FY13 Full Year ` Crore Revenue (excluding Esprit) 2,483 2,167 Esprit Revenue Total Revenue 2,523 2,239 EBITDA (excluding Esprit) Clearance Sale MBOs & & Exports 37% 17% (PY : 18%) Department Stores (PY : 38%) Retail (EBOs incl. Planet Fashion) 46% (PY : 44%) Esprit EBITDA (24) (7) Total EBITDA Segment EBIT Capital Employed ROACE (Annualised) (%) Note : Madura exited distribution tie up with Esprit and closed all Esprit stores in FY13 Launched online shopping portal : One-stop shopping destination for Madura brands. Going Forward : Leveraging brand leadership, expanding retail space & strengthening channel relationships 30

31 Pantaloons Fashion & Retail Ltd ` Crore (Including nine months financials of Pantaloons) 1 Revenue 1,285 EBITDA^ 67 Finance Cost^ 82 Depreciation 54 Net Profit / (Loss) (69) ^ Net of interest income of ` 62 Cr. on current investments ` Crore As on 31st Mar'13 Net Fixed Assets 488 Goodwill 1,168 Net Working Capital 44 Capital Employed 1,700 Net Worth 770 Net Debt# 931 # Net of current investments of ` 800 Cr. Revenue Mix (FY13) Non-apparel 18% Kidswear 9% Womenswear 38% Menswear 35% Pantaloons : Posted revenue 1 at ` 1,285 Cr. & EBITDA^ at ` 67 Cr. (incl. 9 months financials of the acquired Pantaloons business) Gross margin was sustained, however, moderated sales growth and higher sellex impacted EBITDA One time costs on account of change in accounting policy also lowered profitability Customer reach stands expanded to 72 Pantaloons stores & 25 Factory Outlets across 1.96 million sq. ft. Added 5 new Pantaloons stores during H1FY14 Refinancing of debt to optimize finance costs : Utilised current investments of ` 800 Cr. in Q1 and raised term loans of ` 600 Cr. & NCDs of ` 300 Cr. to repay high cost debt 1 FY13 includes nine months financials of Pantaloons Fashion business acquired w.e.f. the appointed date 1 st July

32 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 Revenue (` Cr.) 1,046 1,144 Contributes to 50% of total linen fabric sales One of the largest player in Wool segment in India Revenue crossed ` 1,100 Cr. mark ROACE improved considerably: Earnings doubled in past 3 years while capital employed is managed at a lower level. To capitalise on buoyant demand in the linen segment, JST has expanded linen yarn capacity from 2,300 TPA to 3,400 TPA in Q2FY14 & targets to expand linen fabric processing capacity from 7.3 million meters to 10.1 million meters by the end of Q3FY14 EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) 11.3% % % 13.5% 12.0% 12.8% % 9% % % 82% 88 97%

33 Telecom 33

34 Idea Cellular (Telecom) Revenue (` Cr.) EBITDA (` Cr.) Revenue Market Share % 12.6% 13.6% 15.0% 15.7% Q4FY09 Q4FY10 Q4FY11 Q4 FY12 Q4 FY13 Having a market cap of ~USD 9 billion, Idea is the biggest revenue market share gainer in India since past four years Ranks 3 rd in terms of pan India revenue market share 1 at 15.7% up from 15% a year ago. Contributed to 22% of industry s incremental mobile revenue 1 in FY13 Ranks among top 10 players globally with total Minutes of voice usage of about 1.6 billion per day Base of 127 mn subscribers provides a platform for upgrading pure voice customers to wireless data services in future 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 1.33 & Net Debt/Equity 0.61 (Sep 13) Generated cash profit of ` 4,697 Cr. in FY13 attaining 30% y-o-y growth Maiden dividend 3% of share capital : Overall payout of ` 116 Cr. (incl. dividend distribution tax) ROACE (annualised) improved y-o-y from 9% to 13% in H1FY Based on gross revenue for UAS & Mobile licenses only, as released by TRAI

35 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 Sep'13 Cell Sites: Capacity grew multifold 96, ,234 66,187 73,668 49,860 10,114 24,793 4,763 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13 Robust growth in MOUs (billion minutes) Strong Balance Sheet (Figures in ` billion) Total Debt Net Worth 35 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13 FY06 FY07 Currently, 30.9 million subscribers use mobile data services, contributing 7.2% of total service revenue in Q1FY14 As on 30 th Apr 13, Idea has around 98.1% of reported subscribers as active subscribers, highest in the industry. Going forward: Capitalising on brand!dea, consolidating position in voice market & expanding in evolving wireless broadband business 35

36 IT-ITeS 36

37 Aditya Birla Minacs (IT-ITeS) Revenue (` Cr.) EBITDA (` Cr.) Revenue Mix by Customer Location Canada 14% Asia Pacific 6% Europe 3% US 77% Ranks among top 10 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 20,500 (North America : ~8,000, APAC : 12,500) as on 31 st Mar 13 Revenue reaches near to ` 2,500 Cr. mark in FY13 and EBITDA margin improved y-o-y from 9.1% to 10.2% On constant currency 2 basis, revenue grew y-o-y by 8% & EBITDA by 13% during FY13 Net profit surged by 80% from ` 70 Cr. to ` 125 Cr. in FY13 Generating steady cash profits to fund its capex and working capital requirements Net Debt as on 31 st Mar 13 at ` 977 Cr. stands reduced y-o-y by ` 129 Cr. Operating at ROACE of 11.5% in FY13 at capital employed of ` 1,449 Cr. (PY : ` 1,399 Cr.) Going Forward : Enhancing profitability with focus on operational efficiencies to improve margins. 1 Received employment incentive arrears of ` 25 Cr. in Normalising for CAD/INR translation impact due to forex movement 37

38 Manufacturing 38

39 Manufacturing Businesses Revenue 1 grew by 28% to ` 4,155 Cr. in FY13 EBITDA 1 is up by 10% to ` 446 Cr. Operating at an ROACE 1 of 15.4% FY12 Revenue FY13 Business FY12 EBITDA FY13 Remarks on profitability 2,107 2,924 Agri Lower urea sales volume and higher energy costs due to planned maintenance shutdown Rayon Higher VFY & ECU realisation and growth in volumes Insulators Sales volume & margins were impacted due to cheaper imports 3,255 4,155 Total Revenue grew by 28% and EBITDA by 10% 1,943 2,036 Carbon Black Constrain on sales volume & margins due to cheaper imports and lower off-take from tyre manufacturers 5,198 6, Agri, Rayon and Insulators 2 Having received shareholders approval, ABNL has accounted for slump sale of the Carbon Black business, w.e.f. 1st April

40 Indo Gulf Fertilisers (Agri-business) Acute deficit of urea in India Approx. 25% of the demand is imported Indo Gulf Fertilisers has 10-20% market share in the target markets of Uttar Pradesh, Bihar, Jharkhand 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) 2, , ,250 1,244 1,022 A complete agri-solutions provider Fertilisers, Seeds, Pesticides Capital employed in FY13 increased primarily due to higher outstanding subsidy owing to slower recovery, rise in natural gas prices & increase in trading sales of imported P&K fertilisers. Trading in imported P&K fertilisers has been discontinued in FY14. Outstanding subsidy and receivables reduced q-o-q from ` 1,632 Cr. in Mar 13 to ` 828 Cr. in Sep % 102 EBITDA (` Cr.) 18% 15% % 176 OPM(%) % 7% Capital Employed (` Cr.) ROACE (%) 1,854 38% 39% 31% % 26% 18%

41 Indian Rayon (VFY and Chemicals) 2 nd largest producer of VFY in India with ~39% domestic production share and capacity of 19,800 tons p.a. Largest Indian VFY exporter for consecutive 8 th year with ~48% share in VFY exports from India in FY13 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) Expanded its presence in fine & superfine VFY segment using Spool Technology from Germany at a capex of ~ ` 270 Cr. in Mar 13. New VFY plant has been commissioned and is targeting full capacity utilisation by the end of FY14. New capacity will help in enhancing product quality and range, especially in superfine segment. Increase in capital employed in FY13 is primarily on account of VFY capacity expansion. ROACE improved to 26% EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) 26% 23% % % 24% 19% % % % % % % 41

42 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 at two plants 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 15% during Apr 12-Feb 13 (Source : IEEMA) Deferment of projects coupled with cheaper imports from China impacted sales and margins across the industry Liquidity crunch in the power sector is also restricting dispatches Aditya Birla Insulators contained de-growth in its volumes to 8% during the year 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. Benefit of imposition of safeguard duty will not accrue immediately due to accelerated imports of insulators in anticipation of duty. Revenue (` Cr.) Sales Volumes (MT) EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) % 29% 27% 26% % 13% % 43% 35% 34% 12% 10%

43 43

44 Segmental Revenue & EBIT - Consolidated ( ` Crore) Revenue Consolidated EBIT ,295 6,392 Aditya Birla Financial Services ,037 5,691 Life Insurance , Other Financial Services* ,662 4,933 Telecom (Nuvo's Apparels & Textiles ,802 2,243 Branded Apparels & Accessories ,144 1,046 Textiles (16) (8) Inter-segment Elimination - - 2,466 2,082 IT-ITeS Manufacturing ,924 2,107 Agri-business Rayon Insulators ,036 1,943 Carbon Black (54) (46) Inter-segment Elimination ,490 21,840 Segmental EBIT 2,270 1,921 * 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% 44

45 Profit & Loss Account ( ` Crore) Standalone Consolidated Profit & Loss Account ,754 8,433 Revenue 25,490 21,840 1,116 1,050 EBITDA 4,142 3, Less : NBFC Interest expenses Less : Other Interest Expenses EBDT 2,821 2, Less : Depreciation 1,295 1, Earnings before Tax (before exceptional items) 1,526 1,330 - (104) Exceptional Gain / (Loss)* - (104) Earnings before Tax 1,526 1, Less : Provision for Taxation (Net) Less : Minority Interest Net Profit 1, * A provision of ` 104 Cr. was made in Q4FY12 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. 45

46 Balance Sheet Standalone Mar-13 Mar-12 Balance Sheet Consolidated Mar-13 Mar-12 ( ` Crore) 6,854 5,679 Net Worth 9,384 7, Minority Interest ,005 4,457 Debt 11,799 9, NBFC borrowings 6,903 2, Deferred Tax Liabilities (Net) ,014 10,294 Capital Employed 29,455 20,331 Policyholders' funds (Incl. funds - - for future appropriation) 21,576 19,964 11,014 10,294 Total Liabilities 51,031 40,295 2,226 1,976 Net Block (Incl. Capital Advances) 10,710 9, Goodwill 4,793 3, NBFC Lending 8,000 3,425 2,577 2,012 Net Working Capital 1,837 1,177 5,857 5,598 Long Term Investments Life Insurance Investments 22,929 21, Policyholders' Investments 21,559 20, Shareholders' Investments 1,371 1, Cash Surplus & Current Investments 2,409 1, Book Value (`) Net Debt / EBITDA (x) Net Debt / Equity (x) ,727 10,723 Market Capitalisation - NSE Excluding MTM gain of ` 22 Cr. as on 31 st Mar 13 and MTM loss of ` 104 Cr. as on 31 st Mar 12 w.r.t. fully hedged foreign currency working capital debt 46

47 Standalone Capex Guidance for FY14 ( ` Crore) Capex Plan (A) Spent till Mar'13 (B) Balance to be spent (C = A-B) To be spent in FY14 Major Projects Agri Madura (Retail Stores) Textiles Rayon Other Capex ,

48 48

49 Consolidated Revenue ( ` Crore) Quarter - 1 Quarter 2 Revenue Half Year (PY) (CY) (PY) (CY) 1,366 1,438 1,526 Aditya Birla Financial Services 2,755 2, ,177 1,083 Life Insurance 2,265 1, Other Financial Services* (4) (2) (3) Elimination (4) (7) 1,651 1,343 1,596 Telecom (Nuvo's 2,736 3,247 1,294 1,376 1,613 Fashion & Lifestyle 2,204 2, ,090 1,303 Branded Apparels & Accessories 1,614 2, Textiles (1) (1) (1) Elimination (2) (2) IT-ITeS 1,227 1, , Manufacturing 1,806 1, Agri-business 1,209 1, Rayon Insulators Carbon Black^ 1,052 - (11) (10) (10) Inter-segment Elimination (22) (21) 5,744 6,435 6,493 Consolidated Revenue 11,757 12,237 * 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% ^ Accounted for slump sale of Carbon Black business w.e.f 1 st April

50 Consolidated EBIT ( ` Crore) Quarter - 1 Quarter 2 EBIT Half Year (PY) (CY) (PY) (CY) Aditya Birla Financial Services Life Insurance Other Financial Services* Telecom (Nuvo's Fashion & Lifestyle (7) Branded Apparels & Accessories Textiles IT-ITeS Manufacturing Agri-business Rayon Insulators Carbon Black^ Segmental EBIT 1,109 1,208 * Other Financial Services include Asset Management (proportionately consolidated at 50%, being a 50:50 JV till 9th Oct 12 & 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% ^ Accounted for slump sale of Carbon Black business w.e.f 1 st April

51 Consolidated Profit & Loss ( ` Crore) Quarter (PY) Quarter (CY) Consolidated Profit & Loss Account (PY) Half Year (CY) 5,744 6,435 6,493 Revenue 11,757 12,237 1,174 1,039 1,203 EBITDA 1,955 2, Less : NBFC Interest expenses Less : Other Interest Expenses EBDT 1,379 1, Less : Depreciation Earnings before Tax (before exceptional items) Exceptional Gain / (Loss)* Earnings before Tax Less : Provision for Taxation (Net)* Less : Minority Interest Net Profit * Book gain of ` 24 Cr. and a net tax credit of ` 41 Cr. has been recognized in Q1FY14 w.r.t. the slump sale of Carbon Black business 51

52 Balance Sheet Standalone Sep-13 Mar-13 Balance Sheet Consolidated Sep-13 Mar-13 ( ` Crore) 7,335 6,854 Net Worth 10,211 9, Minority Interest ,110 4,005 Debt 8,874 11, NBFC borrowings 7,068 6, Deferred Tax Liabilities (Net) ,531 11,014 Capital Employed 27,362 29,455 Policyholders' funds (Incl. funds - - for future appropriation) 21,143 21,576 10,531 11,014 Total Liabilities 48,505 51,031 1,756 2,206 Net Block (Incl. Capital Advances) 10,306 10, Goodwill 5,096 4, NBFC Lending 8,300 8,000 1,000 2,577 Net Working Capital 474 1,837 7,616 5,857 Long Term Investments Life Insurance Investments 22,381 22, Policyholders' Investments 21,217 21, Shareholders' Investments 1,164 1, Cash Surplus & Current Investments 1,584 2, Book Value (`) Net Debt / EBITDA (x) Net Debt / Equity (x) ,939 11,727 Market Capitalisation - NSE Note : Standalone capex of ` 224 Cr. was incurred during H1FY14 Excluding MTM gain of ` 22 Cr. as on 31 st Mar 13 and MTM loss of ` 28 Cr. as on 30 th Sep 13 w.r.t. fully hedged foreign currency working capital debt 52

53 Standalone Profit & Loss ( ` Crore) Quarter - 1 Quarter 2 Standalone Profit & Loss Account Half Year (PY) (CY) (PY) (CY) 1,701 2,562 2,132 Revenue 4,599 3, EBITDA Interest Expenses EBDT Depreciation Earnings before Tax (before exceptional items) Exceptional Gain / (Loss)* Earnings before Tax (24) Provision for Taxation (Net)* Net Profit * Book gain of ` 24 Cr. and a net tax credit of ` 41 Cr. has been recognized in Q1FY14 w.r.t. the slump sale of Carbon Black business 53

54 Shareholding Pattern & Market Cap Category As on 30th Sep'13 No. of No. of Shares Shareholding Shareholders held (in million) (%) Promoter & Promoter Group % Foreign Institutional Investors % Domestic Institutional Investors % Non-Institutional Investors 139, % GDRs - Public % Total 140, % Market Cap & Share Price Market Cap (` Crores) Closing Share price (`) , , ,727 9,336 10,723 9, ,939 Trusted by 140,363 shareholders Over 97.5% of shares are in dematerialised form 2,409 6,246 4,227 Face value of ` 10 per share Mar'05 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Sep'13 For analysts coverage on ABNL visit : Source : NSE website Stock Code BSE : NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IN / IRIG LX 54

55 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 55