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 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.