Aditya Birla Nuvo Limited
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Contents Aditya Birla Nuvo – A Snapshot 3 – 12 Segment Financials 13 – 16 Our businesses : Financial Services 18 Fashion & Lifestyle 27 Telecom 37 Divisions 40 Annexure 46 – 54 2 Strong parentage of the Aditya Birla Group A USD 40 billion Indian multinational, Aditya Birla Group is in the league of fortune 500 Operating in 36 countries across 6 continents deriving over 50% of revenue 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) Ranked 1st in Nielsen’s Corporate Image Monitor 2014-15 – Occupying pole position for 3 consecutive years Anchored by 120,000 employees from 42 nationalities. Trusted by 1.2 Mn shareholders & 160 Mn customers Global positioning In India Largest Indian MNC with manufacturing operations in the US Leadership Aluminium, Cement, Carbon Black, VSF, VFY, Aluminium World’s largest aluminium rolling unit Position Branded Apparels, Copper, Chlor-alkali, Insulators (in terms of capacity/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 Top 5 Life Insurance (in private sector in terms of AUM) Cement Among top 10 manufacturers in the world Asset Management (in terms of average AUM) Our Values – Integrity, Commitment, Passion, Seamlessness, Speed 3 Aditya Birla Nuvo : Vision & Mission Vision “To be a premium conglomerate building leadership in businesses and creating value for all the stakeholders” Mission • Investing in the promising sectors • Building leadership in businesses • A platform to drive synergy of resources Kumar Mangalam Birla • Delivering best value to all the stakeholders Chairman • To be a responsible corporate citizen 4 Aditya Birla Nuvo : Progressing in line with its vision Investing in the Promising Sectors Entered Fashion business through Enhanced strategic stake in Telecom through Idea acquisition of Madura Expanded Financial Services portfolio by merger of Forayed in Life Insurance business AMC & NBFC and entry in broking, private equity etc. through JV with Sun Life, Canada Augmented Fashion offerings through acquisition of Entry into IT-ITeS Business Pantaloons, a top 3 big box apparel retailer 2015 2014 2013 2012 2005-2011 2005/06 2003 2000 2001 Created India’s largest online money management platform MyUniverse Added New Superfine Yarn capacity in Rayon Expanded Linen Yarn and Fabric Capacities Commenced Housing Finance operations Applied for Payments bank license in a 51:49 stake with Idea Signed MoU with MMI Holdings to enter health insurance sector in India Invested USD 2 billion over past 15 years to fund the growth of its businesses leading to transformation from a manufacturing company to a premium conglomerate 5 Building Leadership Position across its businesses Aditya Birla Financial Services Market Positioning AUM NBFC Lending Book Among the top 5 fund USD 27.5 billion1 USD 3 billion managers in India (` 164,995 Crore : 35%↑ y-o-y) (` 17,550 Crore : 52%↑ y-o-y) Diversified Portfolio Revenue Earnings before Tax Having 10 lines USD 1.3 billion USD 141 million of businesses (` 7,926 Crore : 19%↑ y-o-y) (` 849 Crore : 17%↑ y-o-y) Fashion & Lifestyle (Madura & Pantaloons) Market Positioning Retail Network Scale #1 branded menswear & 1869 Stores (4.8 mn sq. ft.) Selling two branded womenswear player in India Largest in fashion space apparels every second Customers Base Revenue EBITDA A large 10.8 million USD 910 million USD 89 million loyalty customers base (` 5,450 Crore : 15%↑ y-o-y) (` 532 Crore : 32%↑ y-o-y) Note 1 : Includes AUM of Life Insurance, Private Equity and quarterly AAUM of Asset Management business 6 Building Leadership Position across its businesses Telecom (Idea Cellular) Market Positioning Outperforming Industry Strong Balance sheet 6th largest1 in the world Revenue share grew y-o-y Net Debt to EBITDA : 1.31x 3rd largest2 in India from 16.1% to 17.5%2 (Standalone) Revenue EBITDA Cash profit (post tax) USD 5.3 billion USD 1.9 billion USD 1.4 billion (` 8,482 Crore : 32% y-o-y ) (` 31,527 Crore : 19%↑ y-o-y) (` 11,281 Crore : 32%↑ y-o-y ) ↑ Divisions (Jaya Shree, Indo-Gulf fertilisers, Indian Rayon, Aditya Birla Insulators) Outlook Market Positioning Expanding linen yarn capacity to tap sector growth Leading manufacturer of Long term anti-dumping duty to benefit Insulators sector Linen, Urea, VFY & Insulators in India Gas pooling policy to benefit urea sector Revenue EBITDA Free Cash Flow (pre-tax) USD 901 million USD 102 million USD 52 million (` 5,405 Crore : 9%↑ y-o-y) (` 615 Crore : 11%↑ y-o-y) (` 314 Crore : 36%↑ y-o-y) Note 1 : In terms of subscribers and based on operations in a single country (Source : GSMA, Dec’14) Note 2 : Based on gross revenue for UAS & Mobile licenses only for Oct-Dec14, as released by TRAI 7 A platform to drive synergy of resources Standalone Net Debt Standalone Ratios ( ` Crore) Net Debt/annualised EBITDA Net Debt/Equity 5.8 3854 3591 3584 3.7 0.87 3.0 0.68 O/s Fertilisers 1193 0.42 306 676 Subsidy Mar'09 Mar'12 Mar'15 Mar'09 Mar'12 Mar'15 Standalone balance sheet has been the growth engine for ABNL & a platform to drive synergy of capital resource Invested ~USD 1 billion to fund the growth capital requirements of its businesses over past six years Healthy financial position : Net Debt to EBITDA at 3x & Net Debt to Equity at 0.42x as on 31st Mar’15 Contributed by strong cash flow from operations, dividend income, proceeds from divestment of sub-scale businesses and capital support from the promoters Received dividend of ` 89 Cr. in FY15 (~` 600 Cr. over past 6 years) 8 Delivering best value to all the stakeholders … Exit from sub scale businesses to achieve greater focus on other businesses Divestment of Effective Date Enterprise Value Supported ABNL’s growth plans & Carbon Black business 1st April 2013 USD 240 million strengthened balance sheet Divestment of Effective Date Enterprise Value Greater focus on core businesses IT-ITeS business 9th May 2014 USD 260 million Consolidation of Branded Apparels Businesses to unlock value for the shareholders Aditya Birla Fashion & Retail Ltd. # 1 Menswear player # 1 Womenswear player Creating India’s largest pure-play fashion & lifestyle company Presence across entire spectrum of fashion through India’s leading fashion brands Unlocking value for shareholders by giving them direct holding in a best-in-class fashion powerhouse Largest retail network in fashion space in India Sound Balance sheet to act as a strong enabler for growth Note : Refer slide 52 for transaction details 9 … and driving strong earnings growth Financials Services, Telecom & Divisions Branded Apparels Consolidated Revenue Consolidated EBITDA (Rs. Crore) (Rs. Crore) 26,516 21,840 5,798 14,331 3,247 867 FY09 FY12 FY15 FY09 FY12 FY15 Consolidated Net Profit Market Capitalisation (Rs. Crore) (Rs. Crore) 21,654 1,416 890 10,723 4,227 -436 Mar'09 Mar'12 Mar'15 FY09 FY12 FY15 10 ABNL - A USD 4.4 billion Conglomerate Financial Telecom $ # Fashion & Divisions Services (23.28%) Lifestyle Life Insurance^ * (74%) @ Madura Jaya Shree* Asset Management^ Pantaloons^ # Agri* (51%) @ (72.62%) NBFC (100%) ^ Rayon* Housing Finance (100%) ^ ^ * Private Equity (100%) Insulators ^ # Leadership position in India Broking (75%) ^ Wealth management (100%) Leader Top 3 Top 5 General Insurance Advisory (50.01%) ^ Online Money Management (100%)^ * ^ $ Represent Divisions Represent Subsidiaries Represent Joint Ventures @ JV with Sun Life Financial, Canada # Listed Note : Percentage figures indicated above represent ABNL’s shareholding in its subsidiaries /JV’s 11 Anchored by a strong Management Team Board of Directors • Independent directors have rich experience in their respective fields and incl. ex-secretary to the The Company has a balanced Board, comprising of 2 President of India and former top executives from Executive, 2 Non-Executive, 1 nominee & 5 Independent the esteemed organisations viz., Exim Bank, LIC, Directors, including 2 women directors. IDBI, UTI etc. Business Head Business • Each business is run as an independent SBU under Mr. Lalit Naik, Managing VFY , Chemicals, Agri, the leadership of a business head Director Insulators • Chief Financial Officer heads the finance function which is the life blood for a business Mr. Ajay Srinivasan Financial Services • Business heads & the Chief Financial Officer have wide-ranging experience in the areas of business Mr. Pranab Barua Fashion & Lifestyle development, strategy formulation, restructuring, (Madura & Pantaloons) acquisitions, technology management etc. Mr. Thomas Varghese Textiles • Some of the senior management team members, prior to joining Aditya Birla Group, have also played Mr. Himanshu Kapania Telecom key roles in the globally renowned organisations viz., Saint Gobain, Dow Chemicals, Prudential Corporation Asia, Hindustan Unilever, Reckitt Whole Time Director & Chief Financial Officer Benckiser etc. Mr. Sushil Agarwal 12 13 Achieved revenue growth across the businesses Revenue ( ` Crore) Financial Services 1 Telecom 2 7926 31527 6637 26432 6542 6378 22407 6304 19489 15438 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Fashion & Lifestyle3 Divisions4 5450 4759 5300 5405 3802 4979 4301 2243 3101 1811 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 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 27.02% from 12th August 2008 upto 1st March 2010, at ~ 25.3% till 10th June 2014, at 23.63% till 23rd July 2014 and at 23.29% thereafter as per AS 27.