Question? Leave a message!


CORPORATE PRESENTATION ADITYA BIRLA NUVO LIMITED A PREMIUM CONGLOMERATE FEBRUARY 2016 1 Pg 4 Aditya Birla Group (ABG) Snapshot 2 Pg 5 Aditya Birla Nuvo (ABNL) : Vision – Mission Values 3 ABNL Structure Pg 6 4 Key Highlights Pg 7 5 ABNL Businesses : 5.1 Aditya Birla Financial Services Pg 17 5.2 Telecom Pg 27 5.3 Divisions Pg 29 5.4 New Ventures Pg 34 Pg 35 6 Annexure 2 GLOSSARY Company Technical ABG – Aditya Birla Group FCF – Free Cash Flow ABNL – Aditya Birla Nuvo Limited FY : Financial Year (AprilMarch) Technical ABCAP – Aditya Birla Financial Services Limited EBO – Exclusive Brand Outlet ABFL – Aditya Birla Finance Limited MBO – Multi Brand Outlet ABHFL – Aditya Birla Housing Finance Limited JV – Joint Venture ABIBL – Aditya Birla Insurance Brokers Limited NBFC – Non Banking Financial Company ABCAP – Aditya Birla Capital Advisors Pvt Limited NPA – NonPerforming Asset ABML – Aditya Birla Money Limited PQ – Previous Quarter ABMM – Aditya Birla Money Mart Limited PY – Corresponding period in Previous Financial Year ABHIL Aditya Birla Health Insurance Limited Q1 – AprilJune BSLI – Birla Sun Life Insurance Company Limited Q2 – JulySeptember BSLAMC – Birla Sun Life Asset Management Company Limited Q3 – OctoberDecember Q4– JanuaryMarch Technical QoQ – Quarter on Quarter (Previous Quarter) AUA – Assets Under Advisory ROA – Return on Asset AUM – Assets under Management ROACE : Return on Avg. Operating Capital Employed based on EBIT AAUM – Quarterly average Assets under Management ROE – Return on Equity ARPU – Average Revenue Per User RMS – Revenue Market Share ARMB – Average Revenue Per Megabyte TPA – Tons per annum APE – Annual Premium Equivalent VAS – Value Added Services CY : Current Year VFY ­– Viscose Filament Yarn CAGR – Compounded Annual Growth Rate VLR – Visitor Location Register EBITDA – Earnings Before Interest, Tax, Depreciation and Amortization VSF – Viscose Staple Fibre EBIT – Earnings Before Interest and Tax YOY – Year on Year ( Corresponding period in previous Financial Year) ECU – Electro Chemical Unit YTD – Year to date 3 NOTE 1 : The financial results of ABNL are consolidated financial unless otherwise specified NOTE 2 : The financial figures have been rounded off to the nearest ₹ 1 crore NOTE 3 : 1 USD = ₹ 60 Strong Parentage of Aditya Birla Group (ABG) A USD 41 billion Indian multinational, Aditya Birla Group is in the league of Fortune 500 Operating in 36 countries across 6 continents deriving Ranked 4th in global top companies for leaders 1st in Asia Pacific ABG Snapshot over 50 of revenue from overseas operations (Source: Aon Hewitt, Fortune Magazine RBL 2011) ABNL Anchored by 120,000 employees from 42 nationalities. Vision – Mission Among the largest and the most reputed business houses in India Trusted by 1.2 Mn shareholders 150 Mn+ customers ABNL Structure Ranked 1st in Nielsen’s Corporate Image Monitor 201415 – Occupying pole position for 3 consecutive years Key Highlights Flagship listed companies Aditya Birla Financial Services Aditya Birla Nuvo (ABNL) Grasim Ultratech Hindalco Incl. Novelis Aditya Birla Fashion Idea Cellular (Telecom) Telecom Retail Ltd (ABFRL) (Conglomerate) (VSF Cement) (Aluminium Copper) Divisions Global positioning In India Largest Indian MNC with manufacturing operations in the US Leadership Aluminium, Cement, Carbon Black, VSF, VFY, Position Branded Apparels,Copper, Chloralkali, Insulators New Ventures Aluminium World’s largest aluminium rolling unit (in terms of capacity/production/sales) VSF Among the top 2 producers in the world Top 3 Telecom (in terms of wireless revenue market share) Annexure Carbon Black World’s largest in terms of capacity Top 5 Life Insurance (in private sector in terms of AUM) Cement Among the top global players Asset Management (in terms of average AUM) th Insulators acrylic fibre Globally 4 Largest 4 ADITYA BIRLA NUVO LIMITED (ABNL) : VISION, MISSION VALUES Vision ABG Snapshot ABG Snapshot “To be a premium conglomerate building leadership in businesses and creating value for all the stakeholders” ABNL Vision – Mission ABNL Structure Mission ABNL Structure  Investing in promising sectors Key Highlights  Building leadership in businesses  A platform to drive synergy of resources A Ad dit itya ya Bi Birl rla a Fina Finan ncia cial l S Service ervices s  Delivering best value to all the stakeholders  To be a responsible corporate citizen Telecom Kumar Mangalam Birla T Telec elecom om Chairman T Di Di elec vis visions ions om Divisions Values • Integrity Divisions New Ventures New Ventures • Commitment New Ventures Annexure • Passion A An nn nexu exure re • Seamlessness Annexure • Speed 5 ABNL A Premium Conglomerate ABG Snapshot SOLAR DIVISIONS Jaya Shree ABNL Aditya Birla Aditya Birla Financial Services (100) Renewables Ltd. Vision – Mission Life Insurance Telecom (51) (74) (23.26) Agri NBFC (100) ABNL Structure Rayon Housing Finance (100) Key Highlights Asset Management (51) Insulators Aditya Birla Financial Services General Insurance Advisory (50.01) Telecom Private Equity (100) Divisions Broking (75) Wealth Management (100) New Ventures Represents Divisions Represents subsidiaries Represents Joint ventures Listed Online Money Management (100) Note 1: Percentage figures indicated above represent ABNL’s Shareholding in its subsidiaries/JV’s New Ventures Note 2 : Sun Life Agreed to increase its stake in life insurance joint venture from current 26 to Aditya Birla Health 49 at an investment of ` 1,664 crore, subject to requisite approvals .On completion of transaction, Health Insurance (100) Insurance Co. Ltd. ABNL will continue to hold controlling stake at 51. Annexure (Proposed 51 JV) 6 6 ADITYA BIRLA NUVO : PROGRESSING IN LINE WITH ITS VISION Investing in the Promising Sectors Augmented Fashion Forayed in Life ABG Snapshot offerings through Insurance business Expanded Linen Yarn and Fabric through JV with acquisition of Capacities Pantaloons, a top 3 Sun Life, Canada ABNL big box apparel Commenced Housing Finance operations Vision – Mission Enhanced strategic retailer stake in Telecom through Idea ABNL Structure Key Highlights 2000 2005 06 2012 2013 2001 2005 11 2014 2015 2003 Aditya Birla Financial Services ABNL receives inprinciple approval from RBI to set up Telecom Payments bank in a 51 : 49 joint venture with Idea Cellular Entered into JV with MMI Divisions Added New Superfine Entered Fashion Expanded Financial Holdings to foray in health Yarn capacity in business through Services portfolio by insurance business in India Rayon acquisition of merger of Asset management Madura NBFC business New Ventures ABNL partners with Abraaj Group and entry in broking, to invest in the Solar Power Created India’s largest private equity etc. Business in India. Entry into ITITeS online money Annexure Business management platform “My Universe” 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 7 BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES Aditya Birla Financial Services Aditya Birla Financial Services ABG Snapshot Industry AUM Augmenting Portfolio 1 USD 30.9 billion ABNL Positioning • ABNL has entered into a JV agreement in June 2015 with MMI Vision – Mission (₹ 185,515 Crore) Among the top 5 Holdings Ltd., to enter into health insurance business in India Dec’15 26↑ yoy fund managers • Proposed to be a 51:49 Joint venture with MMI Holdings. in India ABNL Structure • Received an inprincipal approval from FIPB (excl .LIC) • Regulatory approval from IRDAI is awaited. Key Highlights Diversified NBFC Portfolio Lending Book Aditya Birla 2 Having 12 lines USD 3.9 billion Financial Services of businesses (₹ 23,442 Crore) Dec’15 51↑ yoy Strategic Action Telecom • Sun Life Financial, Canada to raise its stake in Birla Sun Life Insurance (BSLI) from 26 to 49. Divisions Revenue – FY15 EBT – FY15 • ABNL will sell 437 million shares in BSLI, constituting its USD 1.3 billion USD 141 million 23 stake, for a sum of ₹ 1,664 Crore. (₹ 7,926 Crore) (₹ 849 Crore) • The transaction is expected to complete within next 23 months, subject New Ventures 19↑ yoy 17↑ yoy to the requisite statutory regulatory approvals in India and Canada • After the transaction, ABNL will continue to hold controlling Annexure stake in BSLI at 51. Note 1 : Includes AUM of Life Insurance, Private Equity and quarterly AAUM of Asset Management business Note 2 : Including Housing Finance lending book Note 3 : 1 USD = ₹ 60 8 BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES Telecom (Idea Cellular) Divisions ABG Snapshot Industry Positioning Industry Strong Balance Free Cash Flow – FY15 India’s largest Linen and VFY (pretax) ABNL Positioning Sheet player Vision – Mission USD 52 million th 1 6 largest in the world Net Debt to EBITDA : 3.3x (` 314 Crore) rd 2 3 largest in India (Standalone) Leading manufacturer of Urea 36↑yoy st (as on 31 Dec’15) Insulators ABNL Structure Key Highlights Revenue FY15 Outperforming Revenue FY15 EBITDA – FY15 USD 901 million USD 5.3 billion USD 102 million Industry (` 5,405 Crore) Aditya Birla (` 615 Crore) (₹ 31,527 Crore) Revenue share grew yoy 9↑ yoy Financial Services 19↑ yoy 11↑ yoy 2 from 17.2 to 18.5 3 Incremental RMS 37.7 Telecom Divisions Outlook Cash profit – FY15 EBITDA – FY15 Strong ROACE –9MFY16 Expanding linen yarn capacity USD 1.9 billion (annualised) (post tax) to tap sector growth. (₹ 11,281 Crore ) USD 1.4 billion JayaShree 46 p.a. New Ventures 32↑ yoy (₹ 8,482 Crore) Long term antidumping duty to Agri 15 p.a. benefit Insulators sector. 32↑ yoy Rayon 29 p.a. Annexure Gas pooling policy to Insulators 22 p.a. benefit urea sector. Divisions 23 p.a. Note 1 : In terms of subscribers and based on operations in a single country (Source : GSMA, Sep’15) Note 2 : Based on gross revenue for UAS Mobile licenses only for Q2 FY16, as released by TRAI Note 3 : Q2 FY16 over Q2 FY15 9 A PLATFORM TO DRIVE SYNERGY OF RESOURCES Standalone Net Debt Standalone Ratios (₹ Crore) ABG Snapshot Net Debt/annualised EBITDA Net Debt/Equity 3,584 3,854 2,980 ABNL 3,591 5.8 Vision – Mission 3.4 ABNL Structure 3.7 3.0 0.87 Key Highlights O/s 0.68 0.42 0.34 1,193 Fertilisers 929 676 306 Subsidy Aditya Birla Mar'09 Mar'12 Mar'15 Dec'15 Mar'09 Mar'12 Mar'15 Dec'15 Financial Services Telecom 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 Divisions Led by realisation of subsidy in Agri business and transfer of ₹439 Cr. of net debt pursuant to demerger of Madura into PFRL, Net debt reduced by ₹ 600 Cr. during past nine months New Ventures In FY 201516, standalone balance sheet will support following investment and capex plan: Standalone Capex of ₹150Cr. Annexure Investment of ₹800 Crore in the Financial Services businesses Proceeds of ` 1,664 Cr. from sale of 23 stake in BSLI will strengthen the balance sheet. 10 DELIVERING BEST VALUE TO ALL THE STAKEHOLDERS … Exit from sub scale businesses to achieve greater focus on other businesses ABG Snapshot Outcome Business Divested Effective Date Enterprise Value Supported ABNL’s growth plans ABNL Carbon Black 1st April 2013 USD 240 million Vision – Mission strengthened balance sheet ITITeS 9th May 2014 USD 260 million Greater focus on core businesses ABNL Structure Creation of India’s largest branded apparel company Key Highlights Aditya Birla Financial Services Telecom 1 Womenswear 1 Menswear Aditya Birla player player Fashion Retail Ltd. Divisions Madura Fashion Lifestyle stands transferred to vested in Pantaloons Fashion Retail Ltd. (PFRL) th New Ventures on scheme becoming effective on 9 Jan’16. th PFRL renamed as Aditya Birla Fashion Retail Ltd. (ABFRL) w.e.f. 12 Jan’16. ABFRL allotted 26 shares to ABNL’s shareholders for every 5 shares held in ABNL. Annexure th New shares were listed permitted for trading on BSE NSE w.e.f. 4 Feb’16. With the reduction in resultant holding of ABNL in ABFRL to 9.1. ABFRL has ceased to be the subsidiary of ABNL. ABNL’s financial results have been st recast to exclude ABFRL (Madura + Pantaloons) w.e.f. the appointed date, i.e., 1 April 2015. (Refer Slide 41 for transaction structure) 11 … AND DRIVING STRONG EARNINGS VALUE GROWTH Financials Services, Telecom Divisions Branded Apparels Consolidated Revenue Consolidated EBITDA ABG Snapshot (₹ Crore) (₹ Crore) CAGR 11 CAGR 37 ABNL Vision – Mission 26,516 ABNL Structure 21,840 5,798 14,331 Key Highlights 3,247 867 Aditya Bira Financial Services FY09 FY12 FY15 FY09 FY12 FY15 Telecom Market Capitalisation Consolidated Net Profit (₹ Crore) (₹ Crore) Divisions CAGR 32 CAGR 56 (FY10FY15) 28,205 New Ventures 1,416 21,654 890 Annexure 10,723 4,227 436 12 FY09 FY12 FY15 Dec15 FY09 FY12 FY15 ANCHORED BY A STRONG MANAGEMENT TEAM Board of Directors ABNL has a balanced Board, comprising of 1 Executive, 2 NonExecutive, 1 nominee 4 Independent Directors, including 2 women directors. ABG Snapshot Independent directors have rich experience in their respective fields and incl. exsecretary to the President of India and former top executives from ABNL the esteemed organizations viz., Exim Bank, LIC etc. Vision – Mission Business Business Head ABNL Structure Mr. Lalit Naik, Managing Director VFY , Chemicals, Agri, Insulators Key Highlights Mr. Ajay Srinivasan Financial Services Mr. Thomas Varghese Aditya Birla Textiles Financial Services Mr. Himanshu Kapania Telecom Telecom Each business is run as an independent SBU under the leadership of a business head Divisions Chief Financial Officer heads the finance function which is the life blood for a business Business heads the Chief Financial Officer have wideranging experience in the areas of business development, strategy formulation, restructuring, acquisitions, technology management etc. New Ventures Some of the senior management team members, prior to joining Aditya Birla Group, have also played key roles in the globally renowned organizations viz., Saint Gobain, Dow Chemicals, Prudential Corporation Asia etc. Annexure Chief Financial Officer Ms. Pinky Mehta 13 Str CSR Vision To actively contribute to the social and economic development of the communities in which we operate. To build a better, ABG Snapshot sustainable way of life for the weaker and marginalized sections of society and raise the country’s human development index. ABNL THE FOCUS AREAS Vision – Mission Sustainable Infrastructure Education Health Ca re Social Causes Livelihood Development ABNL Structure Key Highlights Aditya Birla Nuvo’s community engagement spans 193 villages, inclusive of 14 model villages. Our CSR work is in proximity to our 6 manufacturing units across 4 states of the country. CSR spends at the Group level exceed the 2 norm. Aditya Birla Financial Services Some of the initiatives taken Supported in the campaign for enrolment, and reduction of dropouts at Bangalore Rural and Urban Districts, Jagdishpur, Veraval, Rishra and Halol. We Telecom reached out to 119 schools and 20,053 children. Initiated special coaching classes and career counselling programmes for students. Uniforms, books, notebooks, writing pads, bags and stationery EDUCATION was distributed to 6,965 children Di Telec visions om We continue to support Kasturba Gandhi Balika Vidyalaya (KGBV Government residential schools for girls). Channapattana,Krishnagiri, Veraval, Jagdishpur and Halol. Two residential schools at Jagdishpur Bangalore to help visually impaired children. Functional literacy program conducted in 11 villages at Jagdishpur New Ventures Our hospitals medical centres at plant locations in remote areas of the country attended to over 1 lac patients for minor and major ailments. Annexure Organised over 49 medical camps 23 speciality medical camps in remote villages in Karnataka, Jagdishpur, Rishra, Veraval and Halol. HEALTHCARE Dental and eye camps were organised for school children. Annexure More than 800 rural women participated in the 10 cancer awareness camps organised at Anekal and Ramnagar. 14 CSR Helping farmers earn better through farmer training programmes on advance cropping techniques and other processes to improve yield. Launched Project Kaushalya – A Skills Training Centre in collaboration with CII. Integrated Livestock Development, run in collaboration with ABG Snapshot BAIF providing veterinary support, artificial insemination and vaccinated 5,664 cattle. SUSTAINABLE Project ANYA, the Women Economic Empowerment initiative: DEVELOPMENT ABNL Through our 17 production centres at Jagdishpur, Veraval and Rishra we trained 717 rural women in Apparel and Jute products Vision – Mission manufacturing Infrastructure Development such as the construction and repair of school buildings, road / repairs in remote locations. ABNL Structure To promote dowry less marriages, our unit at Veraval organised mass marriages for 50 couples from the underprivileged community. Key Highlights SOCIAL CAUSES Distribution of 40,478 garments to underprivileged people at various charitable organisations at Bangalore. organised a relief camp to help the flood victims of JK. We reached out to 3,000families and we gave them 44,060 garments Aditya Birla Financial Services Telecom Divisions New Ventures Annexure 15 CONSOLIDATED EARNINGS MIX – FY15 Segment Revenue Segment EBIT ABG Snapshot ABNL Vision – Mission Fashion Divisions Divisions Financial ABNL Structure 2 Lifestyle Services 17 21 21 Key Highlights 28 Fashion 2 Lifestyle 1 1 Aditya Birla Financial Services 26,234 9 2,874 (₹ Crore) (₹ Crore) Telecom Telecom Financial Services 28 Divisions Telecom 30 46 New Ventures Annexure th Note 1: Revenue and EBIT Mix are excluding ITITeS business which was divested w.e.f. 9 May 2014 Note 2: Madura Fashion (a division of ABNL) and Madura Lifestyle (a branded apparel retailing division of Madura Garments Lifestyle retail Co.Ltd. a subsidiary of ABNL) were demerged into Pantaloons Fashion Retail Ltd. a listed subsidiary of ABNL, w.e.f from 1st April 2015. Refer Slide 41 for transaction Structure. 16 ADITYA BIRLA FINANCIAL SERVICES (ABFS) Vision : To be a leader role model in a broad based integrated financial services business ABG Snapshot Nation wide presence through 1,350 branches / touch points and 1,20,000 agents / channel partners AUM at ₹185,515 Cr. Anchored by 11,750 employees Lending book (Including housing Diversified portfolio with Ranks among top 5 fund ABNL (26↑ yoy) finance) at ₹ 23,442 Cr. 12 lines of businesses managers in India (excl. LIC) Vision – Mission (Dec’ 15) trusted by 7 million customers (51↑ yoy) (Dec’ 15) Entering Strategic Partnerships Investing in promising sectors ABNL Structure Consolidation of Acquisition of financial services Foray in Housing Finance business Foray in the schemes of Apple Launched Private businesses under Acquired mutual fund schemes portfolio NBFC Business mutual fund Key Highlights Equity Fund Aditya Birla Nuvo accounts from ING Mutual Fund Acquisition of Alliance IFC became strategic financial investor in mutual fund MyUniverse Aditya Birla Financial Services Telecom Entered into JV with MMI Launched India’s Holdings to foray into Entered retail broking Foray in Mutual Foray in Life Insurance largest online money health insurance in India Divisions through acquisition of Fund business business through JV management portal Sun Life to raise its stake in Apollo Sindhoori with Sun Life, Canada “MyUniverse” BSLI from 26 to 49 New Ventures Others ASSET UNDER MANAGEMENT Revenue Earnings Before Tax Equity (₹ Crore ) (₹ Crore) 1,64,940 CAGR 17 849 Annexure 1,22,362 121,836 7,926 761 727 107,539 6,637 6,542 6,304 6,378 88,309 600 88,371 96,762 368 25,600 43,104 17 FY11 FY12 FY13 FY14 FY 15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 ADITYA BIRLA FINANCE (ABFL) NBFC Established in 1991, one of India’s most reputed NBFC’s ABG Snapshot Lending book reached ROE – 15.1 Net worth grew 13x from ₹ 235 Gross NPA 0.82 USD 3.7 billion mark ROA – 2.09 Crore in Mar’10 to ₹ 3,051 Crore Net NPA 0.16 (9M FY16) (44↑ yoy) (Dec’ 15) in Dec’15 (9M FY16) ABNL Vision – Mission Highest A1+ rating for short term debt and AA+ rating for long term debt from ICRA and India Ratings A ABNL BNL S Stru tructu cture re Industry Landscape : Key Key Hi Hig gh hli lig gh hts ts Domestic credit provided by the financial sector as of GDP in India at 75 is very low if compared with 170 to 375 in large economies like China, UK, Hong Kong , US Japan. AA dd itit ya ya Bi Bi rlrl aa The Share of NBFCs has steadily grown from 10.7 of banking assets in 2009 to 14.3 in 2014, thus gathering systematic importance Fina Fina nn cia cia l l S S ervice ervice ss Lowering of interest rates, growing capital markets, infrastructure focus of government and projects like “Make In India” “Digital India” will spur Telecom growth of NBFCs. Lending Book Di Divis visions ions About Business Competitive Edge: (₹ Crore) CAGR 69 22,210 Strong Parentage Support: Capital Infusion of ₹ 1,900 Crore in past 5 years to support growth New Ventures 17,564 Experienced Management: Over 200 man years of domain expertise in financial services 11,550 Portfolio diversification, client selection active management key to sustainable growth A An nn nexu exure re 8,000 Robust Credit Appraisal Risk Management leading to healthy book and return ratios 3,425 1,850 18 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec' 15 ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS Revenue Net Profit Opex to Net interest () (₹ Crore) Gross NPA Net NPA ABG Snapshot Revenue Net Profit 39.0 36.0 34.6 1.29 289 1.23 271 30.5 1.16 ABNL 29.3 Vision –Mission 24.1 0.90 0.84 0.83 0.82 166 0.58 ABNL Structure 100 0.32 56 0.16 37 Key Highlights 348 715 1201 1776 1746 196 FY12 FY13 FY14 FY15 9MFY16 FY11 FY12 FY13 FY14 FY15 9mFY16 FY11 FY12 FY13 FY14 FY15 9MFY16 Aditya Birla Financial Services Net Worth (₹ Crore) Telecom Segment wise Loan book (Dec’ 15) ROE ROA Others 3051 CAGR 56 3 15.1 2585 Divisions 14.6 14.3 13.1 Capital 11.4 Mortgages 10.2 1769 Market 26 New Ventures 19 1079 Corporate 628 497 Finance Annexure Infra 2.11 2.19 2.09 2.00 1.92 1.85 235 25 Finance 27 FY11 FY12 FY13 FY14 FY15 9MFY16 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec'15 19 ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS FY 1213 FY 1314 FY 1415 Spread Analysis Healthy borrowings Profile Total Income / Average Loan Book 13.8 13.5 13.1 Capital Adequacy ratio at 15.8 ABG Snapshot (Tier I : 13.0 Tier II : 2.8) Interest Cost / Average Loan Book 8.4 8.3 8.2 ABNL Total borrowings at ₹18,803 Crore Vision – Mission Net Interest Income (Incl. Fee income) 5.4 5.1 5.0 ABNL Structure Leverage at 6x Opex / Average Loan Book 1.9 1.5 1.5 Out of total borrowings 66 is long term Key Highlights Provisioning Writeoffs / Average Loan Book 0.6 0.8 0.5 Well placed ALM strategy ROA 1.92 1.85 2.0 Aditya Birla Financial Services Aditya Birla Housing Finance (ABHFL) Telecom Footprint expanded to 26 markets Commenced operations in Lending book as on Dec’15 Net worth at ₹200 Cr. Divisions in Dec’15. Setting up presence in Oct’14 is ₹ 1,232 Cr. (as on Dec’15) 10 more markets by Mar’16 Industry Landscape New Ventures The housing finance loan book has crossed ₹10 trillion mark (Dec’14). Housing Finance Companies NBFCs account for 37 of this loan book. An investment to the tune of USD 2 trillion is expected in the housing sector over the next decade, to achieve the Government’s vision of “Housing for All by 2022” and “Development of 100 smart cities”. Annexure ABHFL Investing in key systems and processes for loan origination till onboarding and servicing. An online customer acquisition platform has been setup for digital presence. 20 BIRLA SUN LIFE INSURANCE (BSLI) Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between Aditya Birla Nuvo Ltd. and Sun Life Financial Inc, one of the leading international financial services organizations from Canada. BSLI is one of the leading life insurance companies in the country. ABG Snapshot FY 15 AUM Among top 5 private life No 1 in group business with EV: ₹3260 Crore of 5 billion 2 insurers in terms of AUM 21.8 market share (9mFY16) VNB Margin : 14.1 (as on Dec’15) ABNL Vision – Mission Industry Outlook ABNL Structure India’s Insurable population to touch 75 crore by 2020. th Ranked 10 among the 147 countries in the life insurance business. Key Highlights Life insurance sector to increase at a CAGR of 1215 over next five years Aditya Birla Total Market size of India’s Insurance sector projected to touch US 350400 billion by 2020 from US66.4 billion in FY13 Financial Services About Business : Telecom A nationwide presence with 489 branches, 3 key bancassurance partners, over 60 thousand direct selling agents and more than 150 corporate Divisions agents brokers. Balanced sales mix: In FY15, nonULIP contributed to 62 of individual new business, out of which share of PAR products was 42 New Ventures 1 st Ranks among top 5 private players in India with new business market share of 6.9 during nine months ended 31 Dec’15 Sun Life to raise its stake in BSLI from 26 to 49 for an investment of ` 1,664 Cr. valuing BSLI at ` 7,235 Cr., subject to requisite approvals Annexure Note 1: APE = Annual Premium Equivalent =100 of regular premium + 10 of single premium Note 2 : In terms of APE among private sector players Media Reports, Press Releases, IRDA Journal 21 BSLI: FINANCIAL HIGHLIGHTS Revenue PAT GROWTH IN AUM Total Premium Income (₹ Crore) (₹ Crore ) (₹ Crore ) Revenue PAT Equity AUM Debt Liquid ABG Snapshot New business Renewal 30,291 30,185 5,885 5691 5,677 5534 5267 5,233 5,216 5037 ABNL 4,833 24,775 4702 22,929 Vision – Mission 1,926 21,110 2,080 19,760 1,837 3,667 1,697 1,938 67 55 59 58 62 ABNL Structure 53 3,959 3,597 3,380 3,295 3,136 542 Key Highlights 461 371 33 305 285 47 45 42 38 41 103 FY11 FY12 FY13 FY14 FY15 DEC'15 FY 11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 9mFY16 Aditya Birla Financial Services Telecom Surplus funds distributed through Embedded Value VNB Margin Dividend Buyback (₹ Crore) 27.5 (₹ Crore) 4108 Divisions 4015 22.8 350 3687 315 3260 3225 16.6 16.2 New Ventures 14.1 Annexure 99 FY12 FY13 FY14 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 22 BIRLA SUN LIFE ASSET MANAGEMENT (BSLAMC) Established in 1994, Birla Sun Life Asset Management Company Limited (BSLAMC) is a joint venture between Aditya Birla Nuvo and Sun Life Financial Inc, ABG Snapshot It offers a range of investment options, including diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds ABNL Vision – Mission Asset Management AUM of th 4 in Equity AAUM 4 Largest AMC In 109 branches House of the year award 25.7 billion Top 2 in Fixed Income AAUM India across country ABNL Structure by Money Today FPCIL 2015 (as on Dec’15) Key Highlights Growth in AUM Domestic Equity Domestic Fixed Income Revenue PAT Rising market share Aditya Birla (₹ Crore) Financial Services Offshore Alternate assets Domestic Market Share Equity Market Share Revenue PAT Telecom 596 CAGR 25 153974 584 133634 502 17129 10.19 10.09 9.85 Divisions 13602 9.45 405 96429 9.09 9.20 366 83451 315 7294 New Ventures 66082 104,152 6307 94128 7.39 4908 163 6.92 77586 123 Annexure 66284 95 85 50543 73 59 5.78 5.45 5.26 5.27 32693 25904 11550 10631 10860 FY11 FY12 FY13 FY14 FY15 Q3FY16 FY11 FY12 FY13 FY14 FY15 9mFY16' 23 Q4FY12 Q4FY13 Q4FY14 Q4FY15 Q3FY16 INSURANCE ADVISORY, PRIVATE EQUITY, HEALTH INSURANCE ABIBL Market share Entered into JV with MMI Holdings Ltd. (a leading South African insurancebased financial services group) in Jun’15 to foray in health insurance business in India. ABG Snapshot 1.76 Health MMI holdings Ltd. has received an in principle approval from FIPB 1.33 Insurance 1.16 ABNL Regulatory Approval from IRDAI is awaited 0.93 Vision – Mission Aditya Birla Health Insurance Ltd ., currently a 100 Subsidiary of ABNL, is 0.50 0.43 proposed to be a 51:49 joint venture with MMI Holdings Ltd. ABNL Structure FY11 FY12 FY13 FY14 FY15 9MFY16 Key Highlights Aditya Birla Leading General Insurance advisory Player ABIBL ₹ Crore Insurance Brokers 201314 201415 In FY15, ABIBL’s premium placement increased yoy by 26 to ₹ 1,132 Cr. while Aditya Birla (ABIBL) Financial Services industry premium grew by 9 Revenue 82 73 (General insurance advisory) Consistently outperforming industry and gaining market share Telecom Earning Before Tax 21 27 Net Profit 14 18 Divisions ABCAP ₹ Crore Aditya Birla PE Funds under management (net) at ₹1,121 Cr. 201314 201415 New Ventures st Capital Advisors Both Fund 1 Sunrise fund have invested their net deployable corpus as on 31 Dec15. Revenue 23 21 rd Planning to launch 3 fund soon. (ABCAP) Earning Before Tax 9 6 Annexure Net Profit 6 4 24 BROKING, WEALTH MANAGEMENT ONLINE MONEY MANAGEMENT The Broking, Wealth management and Online Money Management businesses serves over 2.3 million customers through more than 675 branches ABG Snapshot ABNL ABML is a broking and distribution player, offering Equity and Derivative trading through NSE and BSE and Currency Vision – Mission Broking Derivative on MCXSX. It is registered as a Depository Participant with both NSDL and CDSL and also provides Aditya Birla Money (ABML) commodity trading on MCX and NCDEX through its subsidiary company.. ABNL Structure ABMM is a wealth management and distribution player, offering third Key Highlights ABML ₹ Crore 201314 201415 party products like company deposits, mutual funds, insurance, Aditya Birla Wealth Management structured products, alternate investments, property services and has a Revenue 75 119 Financial Services Aditya Birla premier wealth management service arm to cater to HNI customers. Earning Before Tax (12) 6 Money Mart Telecom (ABMM) Assets under Advisory at ₹8,118 Cr. (Dec’15) Net Profit/(Loss) (12) 6 Equity assets under advisory at ₹2,299 Cr (36↑ yoy) Divisions ABMM ₹ Crore MyUniverse is India’s 1 online personal finance management platform 201314 201415 New Ventures enjoying trust of over 2.3 million registered users who are managing Online Money Revenue 66 86 more than ₹18,750 Cr. through MyUniverse Management MyUniverse Earning Before Tax (6) 6 IFC has become strategic financial investor in My Universe Annexure th MyUniverse is the 7 largest SIP distributor by numbers in India with Net Profit/(Loss) (6) 5 3.4 market share in Dec’15 25 ABFS : FY201415 PERFORMANCE Revenue at ₹ 7,926 Cr. (19↑ yoy) Earnings before Tax at ₹ 849 Cr. (17↑ yoy) ₹ Crore ABG Snapshot EBT Revenue Company Remarks on profitability ABNL FY14 FY15 ∆ FY14 FY15 ∆ Vision – Mission 1,201 1,776 48 ABFL 251 411 63 Expanded lending book (52↑ yoy) ABNL Structure 12 23 Lower new business sales and inforce book 4,702 5,267 BSLI 371 285 Key Highlights 19 BSAMC 29 Growth in total AUM (39↑ yoy) 502 596 140 182 Aditya Birla Financial Services 11 26 Higher premium placement (26↑ yoy) 82 73 ABIBL 21 27 Telecom 58 n.a. Higher average daily brokerage (67↑ yoy) 75 119 ABML (12) 6 Divisions 30 n.a. Increase in business volumes 66 86 ABMM (6) 6 New Ventures Scaling up MyUniverse 9 8 Others (net of elim.) (39) (67) Annexure 19 849 17 6,637 7,926 Total 727 26 IDEA CELLULAR (TELECOM) The fastest growing Indian Telco Pan India Pure Play Wireless No.6 mobile Operator Strong Balance sheet ABG Snapshot No. 3 mobile Operator in India Operator – (Voice + Data) in the World with 182 million Net Debt to EBITDA : 3.3x 4 with 18.5 RMS (2G+3G+4G) active subscribers (Standalone as on 31st Dec’15) ABNL Vision – Mission Mobile Data : The Next Opportunity Industry Growth Drivers: 300 mn Wireless Voice: Internet ABNL Structure (1) Indian Active subscriber penetration (measured on VLR) at 71.7 (907 million subscribers) Users (1) Low rural subscriber penetration of 49.5 (432Mn) . In FY15 65 of new subscribers came from rural areas Key Highlights Data: 93 mn (2) Wireless Internet penetration at 30.6 (300Mn) of Total Mobile Subscribers. 580 mn Mobile Broadband Another 580Mn+ users yet to adopt Digital Services. Users yet to adopt Users 9.5 Aditya Birla (2) Nascent 9.5 penetration of mobile broadband subscribers (93Mn subscribers) digital services of wireless subs Financial Services About business Competitive Edge Telecom Strong mobile data traffic growth – (76 yoy growth for Idea Q3FY16 vs Q3FY15) Consolidated Revenue 3 (₹ Crore) Incremental RMS growth 37.7 over last year 5 Highest RMS improvement in the industry at 4.1 over last 3 years 5 Divisions Idea has grown more than 2 times faster than industry over last 3 years with CAGR 17.9. (Industry CAGR 8.5) CAGR 20 Idea holds 16 stake in one of the world’s largest tower company Indus Towers With 3G/4G spectrum covering its 87 of revenue, Idea is competitively well placed to capture the data opportunity 31527 Idea has recently signed an agreement with Videocon Telecommunications Limited for transfer of ‘Right to Use’ 5 MHz New Ventures 26432 26473 contiguous 1800 MHz spectrum for Idea’s leadership service areas of Gujarat and UPW. 22407 Capex guidance for FY16 (excl. spectrum payouts) stands at ` 75 billion on account of accelerated 4G rollout 19489 Strong balance sheet and avg. quarterly cash profit generation of ` 2,500 Cr. to support balance sheet and growth plans Annexure 15438 Source: (1) As of Nov 30, 2015 based on TRAI report (5) Q2FY16 over Q2FY13 (2) As of June 2015, TRAI performance Indicator Report 3G in 21 service areas including 8 intraCircle Roaming arrangements. (3) Q2FY16 over Q2FY15 4G in 8 service areas with scheduled launch in 2 more by Mar’16 (4) TRAI revenue for Q2FY16 for UAS and mobile licenses only 27 FY 11 FY 12 FY 13 FY 14 FY 15 9mFY16 IDEA : FINANCIALS HIGHLIGHTS Improving Data ARPU Robust growth in Subscribers MOUs Revenue Market Share () Incremental RMS 37.7 Data ARPU(INR) ARMB(paisa) Usages per subs Robust growth in MOUs (billion minutes) 653 MB 31 683 Subscribers 470 MB 18.5 26.9 ABG Snapshot 17.2 588 584 15.8 532 22.3 14.3 14.0 309 MB 26.9 453 172 ABNL 158 363 Vision – Mission 136 167 MB 122 243 113 165 90 86 ABNL Structure 64 52 91 126 145 43 24 Q2FY12 Q2FY13 Q2FY14 Q2FY15 Q2FY16 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 9mFY16 Q3FY13 Q3FY14 Q3FY15 Q3FY16 Key Highlights Aditya Birla Financial Services Cash Profit Strong Balance Sheet (Figures in ₹ billion) EBITDA Net Profit (₹ Crore) (₹ billion) CAGR 26 Net Worth Net Debt Telecom 393 CAGR 30 86.2 74.3 112.81 269 70.4 Divisions 96.01 85.19 206 49.8 New Ventures 140 60.71 40.3 133 121 50.85 34.1 79 39.1 255 31.9 25.04 230 Annexure 19.7 165 10.1 9 7.2 143 131 114 123 FY11 FY12 FY13 FY14 FY15 9mFY16 FY11 FY12 FY13 FY14 FY15 9mFY16 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec'15 28 DIVISIONS (JAYA SHREE, INDOGULF FERTILISERS, INDIAN RAYON ADITYA BIRLA INSULATORS) Revenue (FY15) at ₹ 5,405 Cr. (9↑ yoy) EBITDA (FY15) at ₹ 615 Cr. (11↑ yoy) ABG Snapshot ROACE improved from 14 p.a. in FY14 to 16 p.a. in FY15 to 23 p.a. in 9MFY16 ABNL Vision – Mission ABNL Structure Strong ROACE Business Market Position Opportunity Outlook (9M FY16) Key Highlights India’s 1 Linen player leading • 70 of linen yarn demand in India is met through Jaya Shree 46 p.a. manufacturer of wool tops worsted yarn imports Aditya Birla Financial Services • 28 of urea demand in India was met through th 8 largest urea manufacturer and among the imports during FY15 Telecom Agri 15 p.a. top 2 energy efficient urea plants in India • Gas pooling policy to benefit the urea sector Divisions • Premium is driven by quality and value added yarns Rayon Largest manufacturer exporter of VFY in India 29 p.a. • Indian market continues to favour fine superfine New Ventures denier yarn • Long term antidumping duty (till Sep’2019) to th Insulators India’s largest world’s 4 largest 22 p.a. Annexure benefit domestic manufacturers 29 JAYA SHREE VFY has a niche market globally Premium is driven by quality and value added yarns Drove journey of linen from a commodity to a Leading manufacturer of wool India’s 1 Linen player lifestyle symbol in India expanded its Market size tops and worsted yarn in India ABG Snapshot Opportunity : ABNL Vision – Mission Increasing popularity of Linen as a comfort style fabric will drive growth of linen fabric demand at a CAGR of 10 in next five years. Currently 70 of linen yarn demand is met through imports denoting expansion opportunity for domestic players ABNL Structure Leadership Position: Linen Capacities : Yarn – 3,400 TPA, Fabric 10.1 million metres p.a. Key Highlights Wool Capacities : Worsted Yarn 26,356 spindles, Wool Combing 8 Cards Focusing on retail expansion brand promotion to fortify ‘Linen Club’ fabric brand Retailing linen fabric through 124 EBOs and 3,500+ MBOs Operating at a sound ROACE of 46 p.a. (9MFY16) Aditya Birla Financial Services Expansion Plans : Rising share of linen led by expansion contributing to profitable growth. Telecom Targeting to further expand Linen Yarn capacity from 3,400 TPA to 6,200 TPA to tap sector growth. Divisions Revenue (₹ Crore) Capital Employed (₹ Cr.) ROACE () Revenue Mix EBITDA (₹ Crore) LINEN WOOL CAGR 17 97 New Ventures CAGR 15 82 1,435 1,300 175 172 57 1,144 53 154 39 1,046 141 Annexure 774 47 32 99 53 61 198 88 179 317 237 30 FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 INDO GULF FERTILIZER (AGRIBUSINESS) 8th Largest urea manufacturer in India Stronger farmer connect strategically located in the 1st company to introduce the principles Among the top 2 energy efficient urea plants in heartland of IndoGangetic plains of Six Sigma in the agricultural fields India ABG Snapshot Industry Scenario Regulations : ABNL Acute deficit of urea in India – 28 of the urea demand in India was met through imports during 201415 Vision – Mission Due to government policy for urea production beyond 100 quantity as permissible under Pricing mechanism, few urea manufacturers had to shutdown their plant during 201314 and 201415 ABNL Structure IndoGulf had to take plant shutdown for 41 days in 201314 and for 35 days in 201415, thereby, pulling down earnings from normalised level. Government’s gas pooling policy aiming to improve plant efficiency reduce subsidy outgo will benefit the urea sector Key Highlights Offerings : A complete agrisolutions provider offering Fertilisers, Seeds and agrochemicals Aditya Birla Strong brand “ Birla Shaktiman” is preferred choice of farmers Financial Services Also offering value adding variety – Neem coated “Krishi Dev” Telecom Earnings : Revenue at ₹ 2,042 Cr. and EBITDA at ₹188 Cr. (13↑yoy) during 9mFY16. Targeting 100 capacity utilization in FY16 led by gas pooling policy. Led by realisation of subsidy, capital employed reduced to ₹ 1,250 Cr. in Dec’15 and ROACE improved to 15 p.a. in 9mFY16. Divisions Capital Employed (₹ Cr.) ROACE () Revenue (₹ crore) EBITDA (₹ crore) New Ventures 211 39 197 2,924 176 1,854 2,558 2,313 148 1,641 1,616 26 2,107 Annexure 1,244 77 12 984 7 3 496 31 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 INDIAN RAYON (VFY AND CHEMICALS) The Largest manufacturers and 43 VFY production share Integrated facilities with 34.5 MW captive power plant Exporter of VFY in India 55 share in VFY exports in FY15 ABG Snapshot Opportunities: ABNL Vision – Mission VFY has a niche market globally – Premium is driven by quality value added yarns. Indian market continues to favour fine super fine denier yarn. Anti Dumping duty imposed on caustic soda imports from China Korea for 5 years ABNL Structure Business Overview: Expanded its presence in fine superfine yarn segment using Spool Technology from Germany in Mar’13. Current VFY capacity at 19,800 TPA and caustic soda capacity at 91250 TPA Key Highlights Earnings : Aditya Birla In FY15, VFY segment posted highest ever profitability led by expanded new superfine yarn capacity and enhanced product quality range. Financial Services In Chemicals Segment, maintenance shutdown in Caustic Soda plant lower ECU realisation impacted earnings. Revenue at ₹684 Cr. EBITDA at ₹190 Cr. (25↑yoy) in 9mFY16 led by higher volumes improved realisation in both VFY Caustic Segments Telecom ROACE improved to 29 p.a in 9M FY16 Capital Employed (₹ Cr.) ROACE () Divisions Revenue (₹ crore) EBIDTA (₹ crore) Revenue Mix 26 222 24 860 865 197 21 777 189 19 New Ventures 680 17 565 19 128 110 759 757 VFY 681 Annexure FY15 515 440 Chemicals 81 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 32 ADITYA BIRLA INSULATORS(ABI) Exporting to over 58 4th largest manufacturer 1 manufacturer of insulator in India. countries worldwide. of insulator globally. ABG Snapshot Industry Scenario : ABNL The power generation , transmission distribution sector is the key growth driver for insulators industry. Vision – Mission With mission of “Power for all by 2019” “Make in India” campaign, power sector is expected to witness encouraging medium to long term growth opportunities ABNL Structure Cheaper Chinese imports had adversely impacted domestic players over past few years and the industry had appealed for antidumping duty. The Ministry of Finance, on 16th Sep’14, imposed an interim antidumping duty on imports of insulators from China and on 11th Apr’15, extended the duty till 15th Sep’19 to create a level playing field for the domestic manufacturers. Key Highlights Business Overview: Aditya Birla : ABI is the largest producer of insulators in India with a capacity of 45,260 TPA. Financial Services Power Grid corporation of India State Electricity Boards , ABB, Areva, Siemens etc. are amongst major customers Earnings: Telecom Recorded revenue of ₹ 416 cr. (8↑YoY) in line with volume growth while EBITDA rose by 28 to ₹ 84 Cr. during 9M FY16. ROACE improved to 22 p.a. in 9M FY16 Divisions Capital employed (₹ Cr.) ROACE () Revenue (₹ Crore) 134 EBITDA (₹ Crore) New Ventures 548 34 518 505 468 454 95 83 Annexure 67 61 17 15 12 10 362 375 395 430 455 33 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 NEW VENTURES Solar Power : Aditya Birla Renewables Limited, a 51:49 JV with the Abraaj Group, will bid for the solar power projects, with an aim to build a large scale ABG Snapshot renewable energy platform focused on developing utilityscale solar power plants in India ABNL The JV brings together highly experienced management and operations teams with strong execution capabilities Vision – Mission Industry Landscape: ABNL Structure With Increasing demand for power and favourable regulatory policies to foster use of renewable energy, Renewable energy is set for explosive growth. India has a solar power installed capacity of 3.7GW as of Mar’15 has an ambitious target of 100 GW by 2022. Key Highlights To promote renewable energy and energy security, cabinet has approved amendments in power tariff policy mandating 8 share of Solar energy in total electricity consumption (excl. hydro power) by March 2022 Aditya Birla Financial Services Payments Bank: Telecom RBI has given an inprinciple approval to ABNL for setting up a Payments Bank as promoter. The proposed Payments Bank incorporated as Aditya Birla Idea Payments Bank Ltd. will be 51:49 Joint Venture (JV) between ABNL and Idea Cellular. The JV will apply to RBI for the final Divisions grant of license which will be subject to fulfilment of certain regulatory prerequisites. Gearing to launch consumer services by H2 of calendar year 2016, the JV will capitalise on Idea’s nationwide reach of 2 million+ retail distribution New Ventures channel across 383,000 towns villages ABNL’s experience of successfully promoting scaling up a number of consumer centric businesses Annexure The JV will promote range of services incl. opening of savings bank account, domestic remittances, merchant payments etc. tying up with third parties for offering range of Credit, investment Insurance products. In the long run the NEFT/IMPS and PPI business of Idea Cellular will be integrated with the proposed Payments Bank 34 SHAREHOLDING PATTERN MARKET CAP st As on 31 December 2015 Market Cap (₹ Cr.) ABNL Share Price (₹) Category No . of No. of Shares held ABG Snapshot Shareholding () 2167 Shareholders (in million) 1664 Promoter Promoter Group 19 74.44 57.18 ABNL 1091 945 976 906 814 28,214 Vision – Mission Foreign Institutional Investors 369 20.84 16.01 21,654 14,196 11,727 12.23 Domestic Institutional Investors 254 15.92 10,723 9,336 9,244 ABNL Structure NonInstitutional Investors 14.58 1,30,737 18.98 Key Highlights Total 1,31,379 130.19 100.00 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 31st Dec'15 Aditya Birla Financial Services Shareholding Institutions Life Insurance Corp. of India 4.7 Trusted by 131,379 shareholders Telecom Over 98 of shares are in dematerialised form Reliance Capital Asset Management Ltd. 2.0 Face value of ₹ 10 per share Divisions India Opportunities Growth Fund Ltd. 1.8 For analysts coverage on ABNL visit : HSBC Global Investment Funds 1.4 New Ventures Franklin Templeton Investment funds 1.1 Stock Code: Annexure BSE : 500303 Tata Asset Management Ltd. 1.0 NSE : ABIRLANUVO Franklin Templeton Asset Management (India) Pvt. Ltd. 0.9 Reuters : ABRL.BO / ABRL.NS Bloomberg : ABNL IN 35 CONSOLIDATED RESULTS – SEGMENTAL (FY14 FY15) (₹ Crore) Revenue Consolidated Results EBIT 201314 (PY) 201415 (CY) 201314 (PY) 201415 (CY) ABG Snapshot 6,637 7,926 Aditya Birla Financial Services 725 814 ABNL 4,702 5,267 Life Insurance 371 285 Vision – Mission 1,946 2,666 Other Financial Services 354 529 ABNL Structure (11) (7) Elimination 6,669 7,467 Telecom (Nuvo’s Share) 952 1,305 Key Highlights 4,759 5,450 Aditya Birla Fashion Retail 199 261 2,898 283 ITITeS 181 (16) Aditya Birla Financial Services 4,979 5,405 Divisions 430 494 1,300 1,435 Jaya Shree 141 146 Telecom 2,313 2,558 Agri 56 116 Divisions 860 865 Rayon 172 156 505 548 Insulators 61 76 New Ventures (50) (16) Intersegment Elimination 25,892 26,516 Consolidated Results 2,487 2,857 Annexure 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 EBIT th rd Idea is consolidated at 25.3 till 10 June 2014, at 23.63 till 23 July 2014 and at 23.3 thereafter st Madura Fashion Lifestyle has been demerged into listed subsidiary Pantaloons Fashion Retail Ltd. (PFRL). PFRL was renamed as ABFRL. ABFRL has ceased to be a subsidiary of ABNL w.e.f. 1 April 2015 th 36 ITITeS business was divested w.e.f 9 May 2014 PROFIT LOSS (FY14 and FY15) (₹ Crore) Standalone Profit Loss Account Consolidated 201314 (PY) 201415 (CY) 201314 (PY) 201415 (CY) ABG Snapshot 8,021 8,938 Revenue 25,892 26,516 ABNL Vision – Mission 1,246 1,186 EBITDA 4,927 5,798 Less : NBFC Interest Expenses 742 1,105 ABNL Structure 267 263 Less : Other Interest Expenses 809 652 Key Highlights 979 922 EBDT 3,376 4,041 199 189 Less : Depreciation 1,609 1,703 Aditya Birla Financial Services 780 733 Earnings Before Tax(Before exceptional items) 1,767 2,338 Telecom 24 Exceptional Gain / (Loss) 5 (13) 804 733 Earnings Before Tax 1,772 2,325 Divisions 130 205 Less : Provision for Taxation (Net) 550 833 New Ventures Less : Minority Interest 79 76 674 528 Net Profit 1,143 1,416 Annexure Oneoff items: st th In FY15, consolidated profit was lower by ₹ 36 Cr. on account of net loss of ₹ 23 Cr. from operations of Minacs for the period from 1 Apr’14 to 8 May’14 exceptional loss of ₹ 13 Cr. pertaining to the divestment of Minacs. This loss is without considering deferred grant of ₹ 42 Cr. receivable over next 3 years, which will be accounted for on actual receipt basis. In FY14, consolidated profit was higher by ` 65 Cr. on account of divestment of Carbon Black business (incl. net tax credit of ` 41 Cr.) interest is higher by onetime charge of ` 88 Cr. on redemption of CCDs by Minacs 37 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 Carbon Black divestment. BALANCE SHEET (₹ Crore) Standalone Consolidated Balance Sheet Mar 14 Mar 15 Dec 15 Mar 14 Mar 15 Dec 15 ABG Snapshot Net Worth 8,108 8,519 8,698 11,189 12,871 14,314 ABNL Minority Interest 778 802 828 Vision – Mission Debt 3,753 3,688 3,241 10,893 11,299 12,380 NBFC Borrowings(Incl. Housing finance) 9647 14,686 19,754 ABNL Structure Differed Tax Liabilities (Net) 88 106 170 504 485 699 Capital Employed 11,949 12,314 12,109 33,012 40,142 47,975 Key Highlights Policy holder’s Funds(Incl. funds for future appropriation) 23,557 28,839 28,845 Total Liabilities 11,949 12,314 12,109 56,569 68,981 76,820 Aditya Birla Net Block (Incl. Capital Advances) 1,845 1,859 1,597 13,045 12,342 18,878 Financial Services Goodwill 20 20 4,982 3,973 2,209 NBFC Lending (Incl. Housing finance) 11,550 17,706 23,442 Telecom Net Working Capital 1,574 1,635 1,164 730 160 85 Long Term Investments 7,952 8,695 9,087 410 408 406 Divisions Life Insurance Investments 24,764 30,147 30,340 Policyholder’s Investments 23,435 28,595 28,651 1,329 1,552 1,688 Shareholder’s Investments New Ventures 1,089 4,246 1,460 Cash Surplus Current Investments 557 105 261 860 989 1,099 Book Values (₹ ) 623 655 668 Annexure 2.3 1.5 2.3 Net Debt / Annualised EBITDA (x) 2.6 3.0 3.4 0.88 0.55 0.76 Net Debt / Equity (x) 0.39 0.42 0.34 Note : Pursuant to demerger of Madura Fashion Lifestyle into Pantaloons Fashion Retail Ltd. (PFRL), PFRL ceased to a subsidiary of ABNL, hence excluded from consolidated financials w.e.f. 1st April 2015. 38 CONSOLIDATED RESULTS – SEGMENTAL (9 months for FY16 FY15) (₹ Crore) Revenue EBIT Consolidated Results 201415 (PY) 201516 (CY) 201415 (PY) 201516 (CY) ABG Snapshot 5,341 6,270 Aditya Birla Financial Services 631 728 ABNL 3,442 3,667 Life Insurance 240 102 Vision – Mission 1,904 2,608 Other Financial Services 391 626 (5) (5) Elimination ABNL Structure 5,513 6,160 Telecom (Nuvo’s Share) 938 1,102 4,271 4,277 Divisions 424 505 Key Highlights 1,061 1,135 Jaya Shree 108 112 2,177 2,042 Agri 144 164 Aditya Birla Financial Services 649 684 Rayon 120 159 385 416 Insulators 51 70 Telecom (0) (3) Intersegment Elimination 15,125 16,704 Consolidated Results (From Continuing operations) 1,993 2,335 Divisions 4,047 Aditya Birla Fashion Retail 188 283 ITITeS (16) New Ventures (13) Inter Segment Elimination 19,442 2,335 16,704 Consolidated Revenue (Reported) 2,164 Annexure Other Financial Services include Asset Management, NBFC, Housing Finance, Health Insurance, 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 EBIT th rd Idea is consolidated at 25.3 till 10 June 2014, at 23.63 till 23 July 2014 and at 23.3 thereafter st Madura Fashion Lifestyle has been demerged into listed subsidiary Pantaloons Fashion Retail Ltd. (PFRL). PFRL was renamed as ABFRL. ABFRL has ceased to be a subsidiary of ABNL w.e.f. 1 April 2015 th 39 ITITeS business was divested w.e.f 9 May 2014 PROFIT LOSS (9 months for FY16 FY15) (₹ Crore) Standalone Consolidated Profit Loss Account 201415 (PY) 201516 (CY) 201415 (PY) 201516 (CY) ABG Snapshot 6,867 4,277 Revenue 19,442 16,704 ABNL Vision – Mission 928 665 EBITDA 4,272 4,754 Less : NBFC Interest Expenses 787 1,121 ABNL Structure 192 210 Less : Other Interest Expenses 481 458 Key Highlights 736 455 EBDT 3,004 3,175 137 88 Less : Depreciation 1,239 1,221 Aditya Birla Financial Services 599 367 Earnings Before Tax(Before exceptional items) 1,765 1,954 Telecom 50 Exceptional Gain / (Loss) (13) 414 599 417 Earnings Before Tax 1,752 2,368 Divisions 155 126 Less : Provision for Taxation (Net) 603 692 New Ventures Less : Minority Interest 64 118 444 291 Net Profit 1,084 1,559 Annexure Note 1 : Pursuant to demerger of Madura Fashion Lifestyle into Pantaloons Fashion Retail Ltd.(PFRL), Madura Pantaloons ceased to be division and subsidiary of ABNL w.e.f. 1st April 2015 and hence excluded from ABNL’s Standalone Consolidated financials. Previous year financials are not comparable to that extent. Note 2 : Oneoff items: In FY15, exceptional loss of ₹ 13 Cr. pertains to divestment of Minacs. This loss is without considering deferred consideration of ₹ 42 Cr. receivable over next 3 years to be accounted for on receipt basis. In FY16, exceptional gain includes (a) ` 357 Cr. w.r.t. cessation of PFRL as subsidiary pursuant to demerger of Madura, (b) ₹ 50 Cr. received for facilitation of development of 40 distribution network for financial services business (c) ₹ 6.4 Cr. received as deferred consideration w.r.t. divestment of Minacs. TRANSACTION STRUCTURE Post De merger allotment of shares by ABFRL Pre Demerger th (As on 27 Jan 2016) Public ABG Snapshot 57.2 50.4 ABNL 1 42.8 57.2 Vision – Mission ABNL 3 ABFRL ABNL 4 9.1 ABNL Structure Madura Lifestyle 100 72.6 27.4 Key Highlights 2 MGLRCL PFRL 42.8 40.5 Public Aditya Birla Financial Services Madura Lifestyle Including indirect holding Telecom TRANSACTION STEPS SWAP RATIO Divisions  26 equity shares of PFRL for every 5 equity shares of ABNL  Mirror Demerger of Madura Fashion division into PFRL 1 2  7 equity shares of PFRL for every 500 equity shares of MGLRCL New Ventures  Mirror Demerger of Madura Lifestyle division into PFRL 3  Scheme becomes effective and PFRL renamed as ABFRL  1 equity share of PFRL for all o/s preference shares of MGLRCL Annexure 4  ABFRL ceased to be subsidiary of ABNL A shareholder holding 10 shares in ABNL predemerger, will now hold 10 shares in ABNL 52 shares in ABFRL 41 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 forwardlooking statements due to a number of factors, including future changes or developments in ABNL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in the countries in which ABNL conducts business. Important factors that could make a difference to ABNL’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in ABNL’s principal markets, changes in Government regulations, tax regimes, competitors actions, economic developments within India and the countries within which ABNL conducts business and other factors such as litigation and labour negotiations. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of ABNL's shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of ABNL. ABNL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. ABNL assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. ABNL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF ABNL This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. These materials are not an offer of securities for sale in or into the United States, Canada or Japan. Copyright © 2016 Aditya Birla Nuvo Ltd. 42 THANK YOU Aditya Birla Nuvo Limited Corporate Identity Number L17199GJ1956PLC001107 Regd. Office: Indian Rayon Compound, Veraval – 362 266 (Gujarat) Corporate Office: 4th Floor ‘A’ Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai – 400 030 Website: or Email: Investor Relations Contact Romi Talwar Corporate Finance Investor Relations Aditya Birla Nuvo Ltd. th Address : Aditya Birla Centre AWing 4 Floor S. K. Ahire Marg Worli Mumbai 400030 Phone : +91 22 2499 5573 Email : 43
Website URL