Stock Code: BSE : 500303 NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IB / ABNL IN / IRIG LX Part of the Aditya Birla Group
A USD 40 billion Corporation by revenue size, the Aditya Birla Group is in league of fortune 500 Operating in 36 countries in 6 continents with over 53% of revenue flowing from overseas operations
Among the largest and the most reputed business houses in India Flagship listed companies: Aditya Birla Nuvo (Conglomerate), Grasim & Ultratech (VSF & Cement), Hindalco - Incl. Novelis (Aluminium & Copper), Idea Cellular (Telecom)
Ranked 4th in global top companies for leaders & 1st 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 100 million customers
In India Global positioning Leadership Aluminium, Cement, Carbon Black, VSF, VFY, Aluminium World‟s largest aluminium rolling unit Position Branded Apparels, Copper, Chlor-alkali, Insulators (in terms of production / sales) VSF World‟s largest manufacturer
Top 3 Telecom (in terms of wireless revenue market share) Carbon Black World‟s largest in terms of capacity
Life Insurance (in terms of new business premium) Cement 9th largest manufacturer in the world Top 5 Asset Management (in terms of average AUM)
Our Values – Integrity, Commitment, Passion, Seamlessness, Speed 2 Our Vision
“To become a premium conglomerate
with market leadership across businesses
delivering superior value to shareholders
on a sustained basis”
Kumar Mangalam Birla Chairman
3 Transformation from a Mfg. company to a premium conglomerate
Manufacturing businesses Merger of Indo generating Increased Expanded Gulf Fertilisers & surplus cash Entered into stake in Idea financial services Birla Global with after meeting Life Insurance from 4.3% to portfolio with entry Timely capacity Indian Rayon capex JV with Sun 20.7% in 2005 in Private Equity expansion in (rechristened as requirement Life, Canada and to 35.7% & Broking Manufacturing Aditya Birla Nuvo ) in 2006 businesses businesses
2000 2001 2003 2005 2006 2009 / 2010 2012
Acquired PSI Timely capital in 2001 & Propose to infusion to support growth Transworks in Financial Services acquire plans and 2003 to foray portfolio Acquired controlling stake strengthen in the IT-ITeS expanded with Minacs, a USD in “Pantaloons balance sheet Acquisition of Sector merger of Birla 250 million Fashion” format Madura Global in ABNL Canadian BPO of Future Group Garments
Entry into service sector businesses to tap growth opportunities 4 ABNL : Well positioned to tap growth opportunities
Infrastructure & Savings led Consumption led Outsourcing led Agriculture led High rate of Rising outsourcing High rate of savings Rising income levels capital formation trend Lower penetration of Steady economic Highly skilled A large young population Growth Drivers financial services reform regime human capital Investor friendly Growing awareness Burgeoning middle class policies Increasing Low cost destination for financial planning FII & FDI flow Telecom, Fashion & Key sectors to Power, Roads, Financial Services Lifestyle, Textiles, IT-ITeS benefit Agriculture Automobiles,
Nationwide presence Touching lives of through over 1 million 120 million Indians touch points / channel Aditya Birla Nuvo : A partners large eco-system Anchored by strong Trusted by about 1.5 lacs management teams & shareholders about 65,000 employees 5 A USD 4.5 billion conglomerate
Financial Telecom $ # IT-ITeS^ Fashion & Manufacturing Services (25.29%) (99.85%) Lifestyle*
Carbon Black* Life Insurance^ (74%) @ Agri* Asset Management^ Leadership position in India (51%) @ Rayon* Leader NBFC^ Top 3 ^ Private Equity Insulators* Broking (75%)^ Top 5 Wealth management^ General Insurance Advisory (50%)^ Textiles*
^ $ * Represent Divisions Represent Subsidiaries Represent Joint Ventures @ JV with Sun Life Financial, Canada # Listed, Aditya Birla Group holds 45.92% Note : Percentage figures indicated above represent ABNL‟s shareholding in its subsidiaries /JV‟s 6 Strongly placed in its businesses
Size : Large sizeable player across the businesses
Competitive edge : Well positioned vis-à-vis competition
Operating Performance : Marching on profitable growth after turnaround
Future Prospects : Capturing opportunities across the businesses to achieve next level of growth
Financial position : Strong standalone balance sheet supporting growth
Return on investment : Earning strong return on investments in most of the businesses
7 Financial snapshot : Consolidated
Revenue (` Cr.) EBITDA (` Cr.) Net Profit (` Cr.)
21,840 3,259 2,685 18,188 822 890 15,523 14,331 11,375 1,686 281 151 8,043 1,163 1,153 155 867
(436) FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12
Earnings growing at robust CAGR All the businesses are contributing to the profitable growth During the nine months ended 31st Dec‟12, ABNL posted : Revenue at ` 17,619 Cr. EBITDA at ` 3,012 Cr. Net Profit at ` 894 Cr.
8 Achieved revenue growth across the businesses
Revenue ( ` Crore)
Financial Services1 Telecom2
6313 6550 19489 5871 15438 4778 12398 3500 10131 6720
FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12
Fashion & Lifestyle IT-ITeS Manufacturing
6244 2243 2082 1811 1677 1777 1692 4689 1530 3881 1251 3725 1026 1116 3126
FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12
Note 1 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately consolidated @ 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 10th March 2007 upto 12th August 2008, at 27.02% upto 1st March 2010 and at ~ 25.3% thereafter as per AS 27. 9 Augmented profitability across the businesses
EBITDA ( ` Crore)
Financial Services 1 Telecom 2
661 544 5135
3621 3903 3051 2376 -351 -231 -586
FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12
Fashion & Lifestyle IT-ITeS Manufacturing
198 748 776 752 136 193 189 39 584 578 -4 105 -158 45 4
FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12
Note 1 : Including full figures of Asset Management business. As per AS27, Asset Management biz. has been proportionately consolidated @ 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 10th March 2007 upto 12th August 2008, at 27.02% upto 1st March 2010 and at ~ 25.3% thereafter as per AS 27. 10 On profitable growth trajectory
Consolidated Revenue
7000 ( ` Crore) 6,305
6000
5000
4000
3000
2000
1000
0 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
Consolidated EBITDA ( ` Crore) 1,090 1200 1000 800 600 400 200 0 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 11 Growth supported by strong Standalone Balance Sheet
Standalone Capital Employed Standalone Ratios (` Cr.) Net Debt / EBITDA Net Debt / Equity Fixed Assets & 0.87 Working Capital 4,696 0.78 0.74 3,767 3,437 0.66 3,044 0.58 0.62 0.58 3,058 5.8 2,652 5,436 5,424 5,598 Long Term 4.1 2,524 4,982 3.9 3.8 3.6 Investments 2.8 3.3 3,478 3,910 1,415
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY06 FY07 FY08 FY09 FY10 FY11 FY12
About 60% of standalone capital employed is deployed in long term investments Cash flows generated from manufacturing businesses supported balance sheet Aditya Birla Nuvo, as a conglomerate, is progressing well on the growth path to tap sector opportunities To meet its growth capital requirements, ABNL has issued 16.5 million warrants in May‟12 to Promoters / Promoter Group on a preferential basis after being approved by the shareholders Of total equity infusion of ~ ` 1,500 Cr., a sum of ~ ` 375 Cr. received as 25% application money
Net of MTM provision ` 104 Cr. w.r.t. fully hedged foreign currency working capital borrowings 12 Consolidated Mix – FY12
Revenue EBIT
` 21,840 Cr. ` 1,922 Cr.
Financial Financial Manufacturing Manufacturing Services Services 32% 29% 29% 28%
IT-ITeS IT-ITeS 9% 6% Fashion & Telecom Telecom Lifestyle 23% 10% Fashion & 28% Lifestyle 6%
13 14 Aditya Birla Financial Services (ABFS)
To be a leader and role model in financial services sector with a broad based and integrated business
Advisory
NBFC
Broking
Private Private Equity
Life Life Insurance
Asset Management Asset
Wealth Management Wealth General General Insurance
AUM crossed ` 100,000 Crore mark and has a revenue size of over USD 1.3 billion Anchored by ~ 17,000 employees & trusted by ~ 5.5 million customers Nationwide presence : Over 1,775 points of presence & about 200,000 agents / channel partners Largest contributor to ABNL‟s consolidated earnings before tax – Contributed 45% in FY12 Life Insurance has started giving dividend. NBFC business is expanding and will require capital infusion for growth
ABFS ranks among top 5 private fund managers in India (excl. Banks) & among top 20 (incl. Banks) 15 Birla Sun Life Insurance (BSLI)
Robust growth in Total Premium Income Robust growth in AUM (` Crore) (` Crore) 21,110 19,760
5,677 16,130 5,506 5,885 Debt New Business 4,572 1926 2,080 Premium 2,960 9,168 3,272 2,821 6,893 1,777 1,965 45% 3959 4,020 47% 3,597 46% 883 2,546 Renewal 52% Equity 1,307 1,751 Premium 40% 35% 894 31%
FY 07 FY 08 FY 09 FY 10 FY 11 FY12 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 BSLI ranks 5th among private players with a market share of 8% in 9mFY13. Balanced sales mix : During FY12, non ULIP contributed to 46% (PY: 25%) of individual new business. Strong distribution reach : A nation-wide presence with more than 650 branches, about 139,000 direct selling agents, 5 bancassurance partners and about 200 corporate agents & brokers Turned profitable in FY11 and declared its maiden dividend in FY12. ABNL received `73 Cr. for its 74% holding As on 31st Mar‟12, 13th month premium persistency is at ~82% and 25th month premium persistency is at ~77% Embedded Value at ` 4,015 Cr. & VNB margin at 22.8% in FY12 Going Forward : Augmenting product offerings (Recently launched 4 products) besides focusing on persistency,
expense management and distribution efficiency in the Life Insurance business 16 Birla Sun Life Asset Management (BSAMC)
Robust growth in AUM (` Crore)
82,420
66,461 67,668 66,103 16,422 Equity & 48,657 13559 15,285 15,560 44,552 Alternate 6,168 1 16,171 Assets 27,865 65,998 52,902 52,383 50,543 11,156 42,489 Debt & 28,381 Liquid 16,709
Mar'07 Mar'08 Mar'09 Q4FY10 Q4FY11 Q4FY12 Q3FY13 1Equity AUM (Domestic & Offshore) + PMS + Real Estate Onshore Fund 15 years + journey of continued wealth creation Ranked 4th in India with market share of 9.8% in Q3FY13 Number 1 fixed income fund manager with 11.5% market share Building alternate assets : Maiden Real Estate Onshore Fund of ` 1,060 Cr. Offshore AUM grew to ~USD 750 million Expanding International Presence : Set up offices in Dubai & Singapore Posted revenue at ` 315 Cr. & EBT at ` 89 Cr. in FY12 Going forward : Growing profitable assets with a thrust on improving distribution efficiency and fund performance in the Asset Management business 17 Aditya Birla Finance (NBFC)
Closing book size as on 31st Dec‟12 more than doubled y-o-y to reach ~ ` 6,500 Cr. All the segments are contributing to the growth. Capital Market book reached ` 2,500 Cr. mark. Corporate Finance & Infra financing portfolios crossed ` 1,500 Cr. mark each. Loan Against Property / Lease Rental Discounting book crossed ` 800 Cr. Net worth as on 31st Dec‟12 is ` 892 Cr. (PY : ` 535 Cr.) Share Capital of ` 275 Cr. was infused in past one year to support growth. The business also raised tier-II capital of ` 300 Cr. in Q2FY13 The business is growing at a good pace and will require capital for future growth Going Forward : Having strengthened the management team, focus is on growing book profitably while keeping risk under control NBFC : Book Size 6,500 (` Crore)
3,425
1,850 600 900
Mar'09 Mar'10 Mar'11 Mar'12 Dec'12 18 Idea Cellular (Telecom)
Building sustainable competitiveness while maintaining growth momentum Revenue (` Cr.) EBITDA (` Cr.) Rising Market Share 5,135 19,489 3,903 15,438 3,621 15.0% 3,051 13.6% 12,398 11.7% 12.6% 10,131 2,376 6,720 1,504 4,366
FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 Q4FY09 Q4FY10 Q4FY11 Q4 FY12 Ranks among top 10 players globally with total Minutes of Use on network of about 1.4 billion per day Ranks 3rd in pan India revenue market share at 15% up from 13.6% a year ago. Highest gainer in past 4 years. As on 31st Dec‟12, Idea has around 98.2% of reported subscribers as active subscribers, highest in the industry. With a market cap of ~USD 7 billion, Idea serves a large customer base of about 114 million subscribers Winner of 3G spectrum in 11 service areas which contribute more than 75% of Idea‟s existing 2G revenue Idea holds 16% stake in the world‟s largest Indus Towers Strong balance sheet & cash profit to support growth :Standalone Net Debt/EBITDA 2.22 & Net Debt/Equity 0.83 Idea has been free cash flow positive since past five quarters Going Forward : Increasing revenue share in the Telecom business by capitalising on brand !DEA besides
consolidating its position in voice market & participating aggressively in evolving wireless broadband business.19 Aditya Birla Minacs (IT-ITeS)
Diversifying capabilities and building strong order book with a focus on the bottom-line
Revenue (` Cr.) 2,082 EBITDA (` Cr.) 193 1,677 1,777 1,692 189 1,530 1,109 105 84 45 4
FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12
Ranked 6th among Indian BPO companies by revenue size (Source: NASSCOM) A global solution provider serving > 100 clients through 36 centres in US, Canada, Europe, India & Philippines Employees base of ~19,520 (NA : ~7,574, APAC : 11,946) as on 31st Dec‟12 Turnaround in the bottom-line driven by sites consolidation & cost optimisation measures Generating steady cash profits to fund its capex and working capital requirements Total contract value (TCV) of ~ USD 775 million and USD 730 million sold in FY11 and FY 12 On constant currency basis, revenue grew y-o-y by 10% & Operating EBITDA by 29% during 9mFY13 Going Forward : Sustaining revenue growth from both existing as well as new clients in the IT-ITeS business while focusing on operational efficiencies to push margins upwards. 20 Madura Fashion & Lifestyle
Capitalising on brand leadership and enhancing channel productivity to achieve profitable growth
Revenue (` Cr.) 2,243 EBITDA (` Cr.) 1,811 198 136 1,251 96 1,026 1,116 830 39
(4)
(158) FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12
Madura Fashion & Lifestyle is the largest premium branded apparel player in India Leadership built by Strong Brands : Louis Philippe, Van Heusen, Allen Solly, Peter England. Retailing international brands under „The Collective‟. Retailing branded apparels and accessories through 1,233 exclusive brand outlets spanning across 1.8 million sq. ft. besides reaching customers through more than 1,400 departmental stores and MBOs Revenue has almost doubled in just two years to cross ` 2,200 Cr. mark while capital employed is managed at similar levels – This has led to expansion of ROACE to 21% in FY12 from 11% in FY11 Going Forward : Leveraging brand leadership, expanding retail space and strengthening channel relationships in the Fashion & Lifestyle business 21 Pantaloons Transaction Update
Status ABNL, through its subsidiary Peter England Fashions & Retail Ltd. (PEFRL) invested ` 800 Cr. √ through Optionally Fully Convertible Debentures (OFCDs) in Pantaloon Retail India Ltd. (PRIL) The Board of Directors of PRIL and PEFRL approved the Scheme of Arrangement √ The Board of PEFRL approved the share entitlement ratio in relation to the demerger √ [1 equity share of ` 10/- each in PEFRL for 5 equity shares (incl. DVR shares) of ` 2/- each held in PRIL] Post approval by stock exchanges, demerger scheme was filed with the Hon‟ble Bombay High Court √ The shareholders of PRIL approved the scheme in their meeting held on 6th Dec‟12 √ The Competition Commission of India approved the transaction vide its order dated 21st Dec‟12 √ PRIL, through court scheme of arrangement, will transfer all undertakings, business activities and operations pertaining to the „Pantaloons Fashion Format‟ to PEFRL (the resulting company). A debt of ` 1,600 Cr. will also be transferred to the resulting company. PRIL will redeem ` 800 Cr. OFCDs and the redemption proceeds will be utilised by the resulting company to reduce its debt. The Appointed Date of the transfer is 1st July 2012 Post demerger and on effectiveness of the Scheme, the resulting company will issue equity shares to shareholders of PRIL as per share entitlement ratio Post The shareholding of ABNL, through its subsidiary, in the resulting company, will be 50.09% court As part of the Scheme of Arrangement, ABNL and/or its Affiliates intend making a voluntary open approval offer to the other shareholders of the resulting company. On receipt of requisite approvals, the equity shares of the resulting company will be listed on the National Stock Exchange of India and The Stock Exchange, Bombay 22 Jaya Shree Textiles
Jaya Shree Textiles (JST) is the domestic market leader in Linen segment Revenue (` Cr.) 1,046 Branding & promoting linen fabric under “Linen Club” 774 625 Focus on high margin linen fabric OTC segment 600 573 577 Contributes to 59% of total linen fabric sales One of the largest player in Wool segment in India FY07 FY08 FY09 FY10 FY11 FY12 Revenue crossed ` 1,000 Cr. mark ROACE improved considerably: Earnings doubled in past 2 years while capital employed is managed at 1/3rd level. To capitalise on buoyant demand in the linen segment, JST is planning to expand linen yarn capacity from 2,300 TPA to 3,400 TPA & linen fabric processing capacity from 7.3 million meters to 10.1 million meters at capex of ` 100 Cr.
EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%)
13% 13% 82% 359 345 12% 311 11% 11% 281 9% 141 198 99 19% 67 68 69 15% 9% 15% 88 54 32%
FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 23 Indo Gulf Fertilisers (Agri-business)
Acute deficit of urea in India – Approx. 24% of the demand is imported Revenue (` Cr.) Sales ('000 MT) 1152 1106 Indo Gulf Fertilisers has 10-20% market share in the target markets 1044 1073 1099 870 2,107 of Uttar Pradesh, Bihar, ktiJharkhand and West Bengal 1,250 1,244 1,022 Strong brand “ Birla Shaman” is preferred choice of farmers 785 787 Also offering value adding variety – Neem coated “Krishi Dev” A complete agri-solutions provider – Fertilisers, Seeds, Pesticides FY07 FY08 FY09 FY10 FY11 FY12 Revenue crossed ` 2,000 Cr. mark in FY12. Achieved highest ever production and sales. Capital employed has increased primarily due to increased in working capital on account of rise in urea prices, commencement of trading of imported fertilisers and slower recovery of subsidy The Board of Directors has approved proposal for urea brownfield expansion, subject to Govt. approvals Proposed capacity @ 3,850 tons per day (~1.3 million TPA), will more than double the existing capacity
Capital Employed (` Cr.) ROACE (%) EBITDA (` Cr.) OPM(%) 18% 17% 984 15% 38% 39% 13% 228 14% 211 29% 31% 26% 176 587 155 531 496 130 401 102 10% 307 18%
FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 24 Urea Brownfield Expansion proposal
Background Total Urea consumption in India at ~ 29 million MT is growing at ~ 4% p.a. India imports more than 25% of its Urea requirements (~ 7.8 million MT in FY12 ) To reduce mounting urea subsidy bill in the national interest, the Government of India notified New Investment Policy (NIP) for Urea on 2nd January, 2013. Objective is to cut down urea imports by promoting indigenous capacity expansion.
Brownfield Expansion plan : Indo Gulf Fertilisers The Board of Directors of ABNL has approved proposal for Urea brownfield expansion by 3,850 TPD (~1.3 million TPA) at existing Indo-Gulf fertilisers complex in Jagdishpur (U.P.) under the New Investment Policy subject to requisite Government approvals Land is available at existing plant location in Jagdishpur (U.P.) The proposed plant at Jagdishpur will be located in the heart of Indo-Gangetic plains, which gives a logistic advantage. Plant will be strategically located near to the urea deficit North Eastern India region “Birla Shaktiman” enjoys top of the mind recall among farmers in the area. Major regulatory approvals in place : Environmental, Pollution Control, Water Supply Final approval for setting up of the proposed urea plant is awaited from Department Of Fertilisers Approval for allocation of natural gas is awaited from Ministry of Petroleum & Natural Gas Project completion period : About 3 years Project Capex : ~ ` 4,000 Cr. 25 Indian Rayon (VFY and Chemicals)
2nd largest producer of VFY in India with ~39% domestic production share
Largest Indian VFY exporter for consecutive seventh year Revenue (` Cr.) VFY Sales Volume (MT)
with >50% share in VFY exports from India in FY12 16183 17039 17923 16792 16616 15592 Integrated facilities 680 537 538 565 441 476 Cost effective 34.5 MW captive power plant
VFY has a niche market globally : FY07 FY08 FY09 FY10 FY11 FY12 Premium is driven by quality and value added yarns
Rise in Caustic soda prices and VFY realization contributed to surge in profitability during FY 12.
Expanding its presence in fine and superfine VFY segment using Spool Technology from Germany at a capex of ~ ` 270 Cr. by Q4FY13. Caustic soda expansion by 125 TPD is planned by FY14 at a capex of ` 155 Cr.
EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%) 28% 29% 515 27% 26% 23% 19% 20% 21% 19% 20% 19% 440 155 128 430 120 124 123 451 110 454 437 17%
FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 26 Hi-Tech Carbon
Aditya Birla Group is largest player globally (Capacity : 2 million MTPA) Operating in 12 countries through 17 plants globally Achieving synergies through marketing under brand “Birla Carbon” & central procurement of feed stock (CBFS)
Indian operations are through ABNL which is 2nd largest in India with ~39% production share in FY12 Lowest cost producer in India, having three plants Deriving value contribution by energy sales
Carbon Black imports increased by more than 50% in FY12 affecting capacity utilisation of domestic players.
Finance Ministry has imposed safeguard duty of 30% on carbon black imports from China from 5th Oct‟12 to 4th Oct‟13 and then 25% till 31stDec‟13. The duty will apply on carbon black used in rubber applications (incl. tyres).
25%
Revenue (` Cr.) Sales ('000 MT) EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%)
275 270 26% 27% 230 22% 23% 1,365 215 204 18% 18% 1,235 181 1,943 16% 11% 942 1,588 253 257 753 5% 668 20% 1,096 1,161 132 153 487 13% 739 864 50 205 3%
FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12
27 Aditya Birla Insulators
Used in power generation, Transmission & distribution (T&D) and by Original Equipment Manufactures (OEMs)
th Aditya Birla Insulators is largest domestic producer & 4 largest globally Revenue (` Cr.) Sales Volumes (MT) Capacity – 45,260 TPA at two plants 44281 37050 39031 32304 32561 518 Power Grid corporation of India and State Electricity Boards (SEBs), 468 22967 425 428 ABB, Areva, Siemens etc. are amongst major customers 399 241 Deferment of projects and dumping from China impacted domestic industry. FY07 FY08 FY09 FY10 FY11 FY12
Finance Ministry has imposed safeguard duty of 35% on insulators imports from China from 20th Dec‟12 to 19th Dec‟13 and then 25% till 31stDec‟13.
EBITDA (` Cr.) OPM(%) Capital Employed (` Cr.) ROACE (%)
34% 58% 375 29% 27% 362 22% 26% 43% 294 14% 240 34% 136 134 186 264 123 116 35% 12% 67 23% 54
FY07 FY08 FY09 FY10 FY11 FY12 FY07 FY08 FY09 FY10 FY11 FY12 28 29 Segmental Revenue ( ` Crore)
Full Year Revenue Nine Months
2011-12 2010-11 2012-13 2011-12
6,392 6,131 Aditya Birla Financial Services* 4,258 4,471
5,691 5,534 Life Insurance 3,399 3,974 702 596 Other Financial Services * 859 498 4,933 3,918 Telecom (Nuvo's share) @ 4,146 3,586 2,243 1,811 Fashion & Lifestyle 1,865 1,667 2,082 1,692 IT-ITeS 1,851 1,508 6,244 4,689 Manufacturing 5,548 4,652 1,943 1,588 Carbon Black 1,505 1,442 2,107 1,244 Agri-business 2,274 1,577 680 565 Rayon 568 505 468 518 Insulators 339 344 1,046 774 Textiles 862 785
(54) (53) Inter-segment Elimination (50) (39)
21,840 18,188 Consolidated Revenue 17,619 15,846 * Other Financial Services include Asset Management (proportionately consolidated at 50%, being a 50:50 JV till 9th Oct‟12 and thereafter consolidated as subsidiary since ABFS holds 51% w.e.f. 10th Oct‟12), NBFC, Private Equity, Broking, Wealth Management & General Insurance Advisory. @ Idea is consolidated at ~25.3% 30 Segmental EBIT ( ` Crore)
Full Year EBIT Nine Months
2011-12 2010-11 2012-13 2011-12
541 396 Aditya Birla Financial Services* 566 405
461 304 Life Insurance 452 344 81 92 Other Financial Services * 114 61 534 354 Telecom (Nuvo's share) @ 446 390 125 63 Fashion & Lifestyle 84 82 111 125 IT-ITeS 120 73 610 640 Manufacturing 484 485 165 220 Carbon Black 73 130 192 157 Agri-business 159 161 92 75 Rayon 118 62 46 113 Insulators 35 40 117 76 Textiles 99 91 1,922 1,578 Segmental EBIT 1,701 1,435 * 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. 10th 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 EBIT @ Idea is consolidated at ~25.3% 31 Consolidated Profit & Loss ( ` Crore)
Full Year Nine Months Consolidated Profit & Loss Account 2011-12 2010-11 2012-13 2011-12
21,840 18,188 Revenue 17,619 15,846
3,259 2,685 EBITDA 3,012 2,419
201 112 Less : NBFC Interest expenses 306 134
636 438 Less : Other Interest Expenses 535 469
2,422 2,136 EBDT 2,170 1,815
1,092 941 Less : Depreciation 914 811
1,330 1,195 Earnings before Tax (before exceptional items) 1,256 1,004
(104) (104) Add : Exceptional Gain / (Loss)* - -
1,226 1,091 Earnings before Tax (after exceptional items) 1,256 1,004
216 183 Less : Provision for Taxation (Net) 232 194
120 86 Less : Minority Interest 130 90
890 822 Net Profit 894 720
* A provision of ` 104 Cr. has been made during 2011-12 towards entry tax liability (largely related to previous years, earlier recognized as contingent liability) w.r.t. Renukoot (U.P.) plant of the Carbon Black business; the matter is sub-judice. In 2010-11, Aditya Birla Money and Aditya Birla Money Mart, subsidiaries of ABNL, had borne a one-time exception loss of ` 104 Cr. 32 Standalone Profit & Loss ( ` Crore)
Full Year Profit & Loss Account Nine Months
2011-12 2010-11 2012-13 2011-12
8,433 6,447 Revenue 7,335 6,280
1,051 960 EBITDA 737 753
313 271 Interest Expenses 271 217
737 689 EBDT 466 537
203 194 Depreciation 158 152
534 495 Earnings before Tax (before exceptional items) 308 385
(104) - Add : Exceptional Gain / (Loss)* - -
430 495 Earnings before Tax (after exceptional items) 308 385
85 115 Provision for Taxation (Net) 68 103
345 380 Net Profit 239 282
* A provision of ` 104 Cr. has been made during 2011-12 towards entry tax liability (largely related to previous years, earlier recognized as contingent liability) w.r.t. Renukoot (U.P.) plant of the Carbon Black business; the matter is sub-judice. 33 Balance Sheet ( ` Crore)
Standalone Consolidated Dec-12 Mar-12 Mar-11 Balance Sheet Dec-12 Mar-12 Mar-11
6,294 5,679 5,401 Net Worth 8,924 7,517 6,678
- - - Minority Interest 586 298 278
4,671 4,457 3,287 Debt 10,569 9,224 7,763
NBFC borrowings 5,537 2,973 1,538
159 158 174 Deferred Tax Liabilities (Net) 388 317 259
11,124 10,294 8,862 Capital Employed 26,004 20,328 16,516 Policyholders' funds - - - (Incl. funds for future appropriation) 21,733 19,964 18,977
11,124 10,294 8,862 Total Liabilities 47,737 40,292 35,493
2,135 1,976 1,858 Net Block (Incl. Goodwill) 13,279 12,531 11,883
2,582 2,012 1,434 Net Working Capital 9,192 4,600 2,080
6,153 5,598 5,424 Long Term Investments 354 319 289
- - - Life Insurance Investments 23,351 21,110 19,760
- - - Policyholders' Investments 21,871 20,095 19,063
- - - Shareholders' Investments 1,480 1,015 697
255 707 146 Cash Surplus & Current Investments 1,560 1,733 1,481
554 500 476 Book Value (`) 786 662 586 ^ 4.5 3.6 3.3 Net Debt / EBITDA (x) 2.2 2.3 2.3
0.70 0.66 0.58 Net Debt / Equity (x) 1.01 1.00 0.94
12,439 10,723 9,244 Market Capitalisation - NSE Note : NBFC book of ~ ` 6,500 Cr., ~` 3,425 Cr. and ~1,850 Cr. is included in Consolidated Net Working Capital in Dec‟12, Mar‟12 and Mar‟11 respectively *Excluding MTM loss of ` 16 Cr. as on 31st Dec‟12 and ` 104 Cr. as on 31st Mar‟12 w.r.t. fully hedged foreign currency working capital debt 34 Standalone Capex Plan
( ` Crore)
Plan Spent Spent in Balance to be spent in Capex till Mar‟12 9mFY13 Q4FY13 FY14 /FY15
Major Projects
Rayon (VFY & Caustic) 460 110 151 55 144
Agri 279 7 13 30 229
Textiles 100 - 4 40 56
Fashion & Lifestyle (EBOs) 74 - 26 15 33
Other Capex 529 110 129 60 229
1,442 227 324 200 691
35 36 Aditya Birla Financial Services
Full Year Nine Months ` Crore 2011-12 2010-11 2012-13 2011-12
Revenue
5,691 5,534 Birla Sun Life Insurance 3,399 3,974
315 366 Birla Sun Life Asset Management 301 238
348 196 Aditya Birla Finance 479 239
88 114 Aditya Birla Money 64 64
60 74 Aditya Birla Money Mart 52 41
32 21 Aditya Birla Insurance Brokers 45 24
21 18 Aditya Birla Capital Advisors (PE) 18 15
(5) (9) Elimination (4) (4)
6,550 6,313 Total Revenue 4,353 4,590
600 472 Earnings before tax 612 453
539 413 Net Profit before exceptional items 546 404
- (104) Exceptional Gain / (Loss)* - -
539 309 Net Profit 546 404 Note : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately consolidated @ 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. 37 Birla Sun Life Insurance
Full Year Nine Months ` Crore 2011-12 2010-11 2012-13 2011-12
New Business Premium 1,250 1,644 Individual Business 666 832
676 436 Group Business 476 462
1,926 2,080 New Business Premium (Gross) 1,143 1,294
3,959 3,597 Renewal Premium (Gross) 2,390 2,825
5,885 5,677 Premium Income (Gross) 3,533 4,118
(261) (166) Less : Reinsurance ceded & Service tax (227) (186)
5,624 5,511 Premium Income (Net) 3,306 3,932
67 23 Other Operating Income 94 41
5,691 5,534 Revenue 3,399 3,974
461 304 Earnings before tax 452 344
461 305 Net Profit 452 344
2,450 2,450 Capital 2,450 2,450
21,110 19,760 Assets under management 23,351 19,132 38 Birla Sun Life Asset Management
Average AUM ` Crore Q3FY13 Q4FY12 Full Year Nine Months Equity 10,981 10,631 ` Crore 2011-12 2010-11 2012-13 2011-12 Debt & Liquid 65,998 50,543 315 366 Revenue (Fee Income) 301 238 Domestic AUM 76,978 61,174 Revenues 89 126 Earnings before tax 86 76 Off shore 3,844 3,390 59 85 Net Profit 59 48 PMS 537 461
Real Estate Fund 1,060 1,078 •Birla Sun Life Asset Management
Total AUM 82,420 66,103
NBFC : Aditya Birla Finance
Full Year Nine Months ` Crore 2011-12 2010-11 2012-13 2011-12 109 54 Revenue 479 239
28 16 Earnings before tax 95 56
19 11 Net Profit 64 37 39 Idea Cellular (Telecom)
A pan India player with operations in all 22 service areas Robust growth in EBITDA (` billion) Revenue (` billion) Subscribers (million) EBITDA grew by 32% y-o-y in FY12 112.7 51.3 39.0 36.2 89.5 23.8 30.5 63.8 15.0 43.0 24.0 195 154 7.4 14.0 FY07 FY08 FY09 FY10 FY11 FY12 101 124 67 30 44 Net Profit (` billion) FY06 FY07 FY08 FY09 FY10 FY11 FY12
10.4 8.8 9.5 9.0 7.2 Cell Sites: Capacity grew multifold 5.0 Added 14 service areas in past five years 2.1
96,015 66,187 73,668 49,860 FY06 FY07 FY08 FY09 FY10 FY11 FY12 10,114 4,763 24,793 Strong Balance Sheet (Figures in ` billion) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12
133 121 89 Robust growth in MOUs (billion minutes) 79 Total Debt
133 114 123 65 131 43 363 453 Net Worth 21 46 86 165 243 33 11 22 35 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 FY06 FY07 FY08 FY09 FY10 FY11 FY12 40 Idea Cellular (Telecom)
Full Year Nine Months ` Crore 2011-12 2010-11 2012-13 2011-12
19,489 15,438 Revenue 16,380 14,144
5,135 3,903 EBITDA 4,380 3,772
2,111 1,393 Segment EBIT 1,763 1,538
723 899 Net Profit 703 484
13,050 12,300 Net Worth 14,100 12,805
13,337 12,070 Total Debt 14,932 13,076
26,387 24,370 Capital Employed 29,031 25,881
41 Madura Fashion & Lifestyle
EBOs (Nos.) Retail Space (Million Sq. Ft.)
1.8 1.6 1.3 1.0 1,129 1,233 698 895
Mar'10 Mar'11 Mar'12 Dec'12
Full Year Nine Months ` Crore 2011-12 2010-11 2012-13 2011-12
2,243 1,811 Revenue 1,865 1,667
198 136 EBITDA 144 137
125 63 Segment EBIT 84 82
616 598 Capital Employed 522 606
21 11 ROACE (Annualised) (%) 20 18
Note : Madura exited distribution agreement with Esprit and closed all Esprit stores in 9mFY13. EBITDA from continuing operations (i.e., excluding Esprit) is ` 174 Cr. and ` 142 Cr. in 9mFY13 and 9mFY12 respectively
42 Aditya Birla Minacs (IT-ITeS)
Revenue Mix – IT-ITeS (FY12)
Mfg. 56% TIME 28% BFSI Others 11% 5%
Full Year Nine Months ` Crore 2011-12 2010-11 2012-13 2011-12
19,733 19,615 Employees (Nos.) 19,520 20,230
2,082 1,692 Revenue 1,851 1,508
189 193 EBITDA 185 132
111 125 Segment EBIT 120 73
70 74 Net Profit 87 43
Note : TIME – Telecom, Technology, Infrastructure, Media & Entertainment; BFSI – Banks, Financial Services & Insurance 43 Annexure III : Shareholding Pattern & Market Cap
Category As on 31st Dec'12 Market Cap & Share Price No. of No. of Shares Shareholding Shareholders held (in million) (%) Promoter & Promoter Group* 24 59.37 52.29% Market Cap (` Crores) Closing Share price (`) Foreign Institutional Investors 279 18.32 16.14% 1396 1071 945 1096 Domestic Institutional Investors 210 15.31 13.49% 748 906 814 402 445 Non-Institutional Investors 145,100 18.76 16.52% 13,265 12,439 10,723 GDRs - Public 1 1.77 1.56% 9,336 9,992 9,244 Total 145,614 113.53 100.00% * Including 1.425 million GDRs representing 1.26% holding 6,246 4,227 2,409 Trusted by 145,614 shareholders Over 97% of shares are in dematerialised form Mar'05 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Dec'12 Face value of ` 10 per share Source : NSE website For analysts coverage on ABNL visit :
http://www.adityabirlanuvo.com/investors/downloads/third_party_analysts_coverage.aspx
Stock Code – BSE : 500303 NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IB / ABNL IN / IRIG LX 44 Annexure IV : Board of Directors & Management Team
Board of Directors Business Head/Director Business
Mr. Kumar Mangalam Birla, Chairman Dr. Rakesh Jain Agri-business Mrs. Rajashree Birla Insulators Mr. B. L. Shah IT-ITeS Mr. P. Murari (Independent) Mr. Ajay Srinivasan Financial Services Mr. B. R. Gupta (Independent)
Ms. Tarjani Vakil (Independent) Mr. Pranab Barua Fashion & Lifestyle
Mr. S. C. Bhargava (Independent) Mr. Thomas Varghese Textiles
Mr. G. P. Gupta (Independent) Mr. Lalit Naik VFY & Chemicals
Mr. Tapasendra Chattopadhyay (Independent) Dr. Santrupt Misra Carbon Black
Dr. Rakesh Jain, Managing Director Mr. Himanshu Kapania Telecom
Mr. Lalit Naik, Dy. Managing Director Whole Time Director & Chief Financial Officer Mr. Sushil Agarwal, Whole Time Director Mr. Sushil Agarwal 45 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 – 362 266 (Gujarat) Corporate Office: 4th Floor „A‟ Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai – 400 030 Website: www.adityabirlanuvo.com or www.adityabirla.com or Email: [email protected] 46