Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2

8/14/2019 Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2

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ADITYA BIRLA NUVO LIMITEDADITYA BIRLA NUVO LIMITEDCORPORATE PRESENTATIONCORPORATE PRESENTATION

strong foundationstrong foundation energisedenergised growthgrowth

Stock Code BSE : 500303 NSE : ABIRLANUVO Reuters : ABRL.BO / ABRL.NS / IRYN.LU Bloomberg : ABNL IN / NABNL IN / IRIG LX


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The Aditya Birla Group

Among the largest and the most reputed business houses in India

Flagship Companies: Idea Cellular, Grasim, Hindalco, Aditya Birla Nuvo and UltraTech

A USD 28 billion Corporation operating in 25 countries across 5 continents

About 50% of revenues generated from overseas operations

Anchored by ~ 1,25,000 employees belonging to 25 nationalities

Trusted by over 1.5 million shareholders

In India

Leadership Aluminium, Cement, Carbon Black,Position Branded Apparels, Copper, VSF,(in terms of VFY, Chlor-alkali, Insulatorsproduction/sales)

Top 5 Telecom (in terms of subscribers base)Life Insurance (in terms of Weighted New

Received Premium - WNRP)

Asset Management (in terms of average AUM)BPO (in terms of revenue size)

Global positioning

VSF Worlds largest producer

Aluminium Worlds largest aluminium rolling unit

Carbon Black 4th largest producer in the world

Insulators 4th largest producer in the world

Cement 11th largest producer in the world

Our Values Integrity, Commitment, Passion, Seamlessness, Speed


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Aditya Birla Nuvo : Vision and Strategy

Vision

Strategy

To increase the share of Growth businesses in the

consolidated revenues by deploying surplus cash from

Value businesses to nurture the Growth businesses

To become a premium conglomerate with market

leadership across businesses delivering superior

value to shareholders on sustained basis


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Rs. 136 billion in FY08-09

Rs. 18 billion in FY02-03

Financial Services

Telecom IT-ITES Garments

Value Businesses : Strong Foundation

Grow

thBu

sines

ses

Energisedgrowth

Consolidated Revenue Mix

Value businesses

28%

(Rs. 38 billion)

Growth businesses

72%

(Rs. 98 billion)

Valuebusinesses

67%(Rs. 12 billion)

Growth

businesses

33%

(Rs. 6 billion)

Transformation from a manufacturing company to a premium conglomerate

Aditya Birla Nuvo : A Growth Story

CarbonBlack

Fertilisers

Insulators

Rayon

Textiles

CAGR 41%


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Life Insurance JV withSun Life, Canada

Acquisition ofMadura Garments

Entry into new age businesses with high growth-potential

2000 2001 2003 2004 2005 2006 1999 2007

1999

Raised Rs. 7.8billion through

rights issue

Carbon BlackBrownfield

expansion by

60K MT to230K MT

De merger ofCement unit /Surplus cash

returned to

shareholdersthrough buybackof equity shares

Successful history of transformation & rejuvenation of businesses

2008/09

Acquired PSI DataSystems, an IT

services company

Acquired 76%stake in Apollo

Sindhoori, a retailbroking companyForay into the

BPO sectorthrough the

acquisition ofTransworks

Carbon BlackBrownfield

expansion by 40KMT to 160K MT

Merger of IndoGulf Fertilisers

and Birla Globalwith Company

Indian Rayon

rechristened asAditya Birla

Nuvo

Increased stakefrom 4.3% to

20.74% in 2005;further to 35.74%

in 2006

Acquired Minacs,a leading

Canadian BPO

Insulatorssubsidiary merged

with Nuvo w.e.f.April 1, 2007

Promoters infused

Rs. 341.3 Cr. onconversion of 17

lacs warrants and

Rs. 377.4 Cr. as10% applicationmoney on 1.88Cr. warrants in

Mar08

Acquired balancestake in Birla Sun

Life Distribution

Entered PrivateEquity biz.


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Value BusinessesGrowth Businesses

TextilesRayon FertilisersCarbon

Black

BPO(88.28%)

GarmentsFinancialServices

Telecom(27.02%)

Asset Management

(50%) *

Life Insurance

(74%)*

Distribution (100%)Retail broking (76%)

NBFCInsurance Advisory

Private Equity

Represent Joint Ventures

ContractExports (100%)

IT Services(76.89%)

Minacs(100%) Represent SubsidiariesApparel

Retail (100%)

De-risking with optimum blend of value & growth businesses

Insulators

Aditya Birla Nuvo : Premium Conglomerate by design

* JV with Sunlife Financial, Canada

Note : Percentage figures indicated above represent

Nuvos shareholding in its subsidiaries /JVs


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Carbon Black

8%

Fertilisers 9%

Textiles 4%

Insulators 3%

Garments 8%

IT & ITeS 13%

Life Insurance

28%

Telecom 21%

Rayon 4%Financial

Services 2%

Growth Wheel

ConsolidatedRevenues-Mix

FY 2008-09

Rs. 136 billion

(~ USD 3 billion)

Note : 1 USD = Rs. 45


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Aditya Birla Nuvo : House of power brands

A leading player in the financial services space

A leading player in the premium branded apparel sector

Value businesses generating stable cash flows


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Financial snapshot

Average rate : 1 USD = Rs. 40 (FY07-08) & Rs. 45 (FY08-09) 1 billion = 100 Crores

FY'07-08 FY'08-09 FY'07-08 FY'08-09

3,953 4,786 Rs. Cr. 11,861 13,643

988 1,064 USD Mn 2,965 3,032

243 137 Rs. Cr. 151 (431)

61 31 USD Mn 38 (96)

7.8% 5.5% ROACE (%) (Annualised) % 5.9% 0.6%

0.7:1 1.1:1 Total Debt / Equity ratio (x) x 1.6:1 1.5:1

155,028 155,497 Nuvo's Shareholders Nos.

13,253 4,220 Rs. Cr.

3,313 938 USD Mn

Standalone ConsolidatedUnit ofmeasurement

Particulars

Market Capitalisation (Nuvo)

Revenues

Net Profit

Proposed infusion of Rs. 1,000 Cr. through preferential allotment of 1.85 Cr. warrants

to the Promoters will strengthen financial position


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Telecom : Indian industry overview

Tele-density in India at ~ 37% as on 31st Mar09 (Source : TRAI)

2nd largest population after China; tele-density far lower than about 45% in China & over 80% in US

Indian cellular industry : Fastest growing cellular market in the world

Wireless subscribers at 391.76 million in Mar09 grew at a CAGR of 66% in past 3 years

2nd largest wireless subscribers base in the world after China

Expected to reach 737 million subscribers by 2012 (Source : Gartner)

Indian Cellular Industry : Pan India Market Share(in terms of subscribers)

As on 31st Mar09

Source : TRAI

Aditya Birla Nuvo holds 27.02% share

Aditya Birla Group holds 49.13% share

Reliance

18.5%

Vodafone17.6%

Tata

9.0%

IDEA

(incl. Spice)

11.0%

BSNL

13.3%

Airtel

24.0%Others

6.7%


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8.4% 8.9%9.2%

11.0%

19.5%17.5% 18.0%

18.6%

Mar'07 Sep'07 Mar'08 Mar'09

Pan India 8 established operating circles

Idea Cellular : Moving towards Pan India presence

Idea is 5th largest in India with 11% (incl. spice) all India share

43.02 million subscribers as on March 31, 2009Ranks 2nd with 19.5% share in combined subscribers base of 8

established operating circles (Airtel ranks 1st with 19.8% share)

Holding licenses and spectrum for all 22 circles with operations

in 16 circles covering over 150K towns and villages

Spice is rebranded as Idea in Punjab and Karnataka circles

Rolled out in Mumbai and Bihar & Jharkhand in FY09, Orissa in Apr09

Key Enabler : Achieving pan India presence by Dec09

Targeting pan India operations with planned launch of services in

remaining 6 circles by the end of calendar year 2009

Source : TRAI

Idea - Market Share trend (%)

Idea derived net cash inflow of over Rs. 45 billion out of spice deal to fund its growth plans

Acquired 40.8% stake in Spice at Rs. 77.30 per share for Rs. 27.2 billion incl. non-compete fee of Rs. 5.4 billion

Idea made preferential allotment of 464.73 million equity shares to Telecom Malaysia (TMI) in Aug08 at

Rs. 156.96 per share collecting about Rs. 73 billion; post allotment Nuvos stake in Idea reduced to 27.02%

Open offer for additional 20% stake in Spice communication at Rs. 77.30 per share completed in Oct08

Spice will be merged with Idea. Swap ratio will be 49 shares of Idea for every 100 shares of Spice

Providence infused Rs 21 billion in Aditya Birla Telecom Ltd. (ABTL) in Dec08

ABTL, a subsidiary of Idea, has license for Bihar & Jharkhand & holds 16% stake in Indus Towers


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76

212

502

1042

901

FY05 FY06 FY07 FY08 FY09

2,2622,965

4,366

6,720 10,125


Idea Cellular : Growing at a pace higher than industry

Revenues (Rs. Cr.)TMI and Providence deal strengthened financial position of Idea

Net debt to equity (net of cash surplus of Rs. 5,131.6 Cr.) is 0.27 as at 31st Mar09

Cash inflows will be used for financing capex plans and 3G spectrum auction

Spices ILD license & TMIs presence in 10 Asian countries will be leveraged

IRU for Indus Towers, a JV with Bharti & Vodafone for tower sharing signed

Effective from 1st Jan09, JV will pillar speedy roll out in Ideas new circles

PAT (Rs. Cr.)

391.76

129.54

165.1198.78209.07

261.09

43.02

24.00

7.3710.36

14.01

18.67

Mar'06 Sep'06 Mar'07 Sep'07 Mar'08 Mar'09

Industry Idea

Subscribers base (Million)

Source : TRAI

Financials at Page 49


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Aditya Birla Nuvo Financial Services : Structure & Vision

VISION

To be a leader and role model in

financial services sector with a broad based and integrated business

LifeInsurance

A

ssetManageme

nt

Non-Banking

FinancialCompany

In

suranceadviso

ry

Distribution&

WealthManageme

nt

Leveraging synergies to be more competitive and cost effective

RetailBroking

PrivateEquity


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Faster growing economy

Indian economy grew by 9% in terms of GDP in past

three years (Source : CMIE)

Despite global slowdown, managed to grow by 6.5% in

FY2008-09 (Source : CMIE)

Large population & young demographics

Fast growing aspirations

High rate of savings

Financial simpleton

Safety over returns

Seeking reassurance from a Trusted face

Lower penetration

55% of savings lying in bank deposits

Household penetration in

Mutual Funds ~ 5%,

Life Insurance ~ 15%

Huge opportunity in tier 2 & 3 cities

Financial Services Sector in India

The Indian Financial Services sector has yet to tap Indias true potential

Geographical Dispersion of Financial Services Products (2006)


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Built momentum in Life Insurance and Asset Management businesses

Put together a winning team & set scalable processes

Setting goals for Distribution & Wealth management and NBFC & Insurance advisory

Acquired 76% stake in Apollo Sindhoori, a retail broking company

Entered Private Equity business

EXPANSION

Growing fasterthan the market

Scaling updistributionreach acrossmarkets and

channelsImprovingproductivityacross thechannels

People bound bya Vision

Productinnovation

Speed to market

Consistent andsuperiorinvestmentperformance

Customerengagementmodel

Capital efficient

DIFFERENTIATION

Leveraging onsynergies

within AdityaBirla FinancialServicesGroup

within AdityaBirla Group

Sun LifeFinancial

Outsourcing &Decentralisation

Technology

Best employer

Trusted Brand

Risk &Compliance

TalentRetention

STRATEGY TRANSFORMATION

ACTION PLAN

EXCELLENCE

Aditya Birla Nuvo Financial Services : Road Map

STATUS


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Life Insurance : Indian industry overview

Lower life insurance penetration in India (4.1% of GDP against World average of 7.5%)

Penetration in India expected to rise to ~ 6.6% of growing GDP in 2012

Indian Life Insurance Industry : New business premium size expected to grow to Rs. 2,000 billion

by 2012 from current Rs. 900 billion

Number of lives covered expected to rise to ~ 300 million by 2012 from current 150 million

Marketing efforts from private players is increasing market size through mass education

Market share of private players in weighted new received premium rose to 48% in FY09 from 33% in FY07

Indian Life Insurance Industry : Market Share amongstprivate players (in terms of WNRP)

(FY2008-09)

Source: IRDA

74:26 JV with Sunlife, Canada

SBI Life

15.0%

Bajaj Allianz

13.1%

HDFC Standard7.6%

Birla Sunlife

9.0%

Others

19.5%

Reliance Life

9.8%

ICICI Prudential

20.7%

Max New York

5.2%


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85137

339

600

Mar'06 Mar'07 Mar'08 Mar'09

18

57100

166


Birla Sun Life Insurance : Focus To Achieve Leadership

Distribution Centres(Nos.)

Key Enablers :

Pioneered Unit Linked Insurance Plan (ULIP) & bancassurance

Tie-ups: 6 banks & over 400 corporate agents

Continued thrust on strengthening distribution reach across channels

Branch network and Direct Sales Force grew multifold during last three years

to reach 600 branches and 166K agents respectively

Further branch expansion to be aligned with industry growth outlook

Product portfolio strengthened in last year through launch of 10

products in individual life segment and 2 products in group business

In the current year, further launched pension plan-Freedom 58, Platinum

Plus-II, Traditional Life plan & Health Plan

Strengthening management team and putting in place robust ITplatform to support growth

Focus on superior and consistent fund performance

More than 85% of equity as well as debt AUM is invested in fundamentally

strong large caps & highest rated instruments respectively as on 31st Mar09

To be amongst top 3 private players

Direct Selling Agents (000)

Key Aspiration


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New business Renewals & other income

Birla Sun Life Insurance : Regaining Market Share

In FY09, BSLI ranked 5th with 9% share (in terms of WNRP) amongst privateplayers up from 6.6% in FY07-08

Weighted New Received Premium (WNRP) of BSLI grew YoY by 44% while

private life insurers grew by 6% and industry de-grew by 3%

Achieved 2nd best growth rate amongst top 7 private players

For the month of Mar09 per se, BSLI garnered 11.2% market share amongst

private players

Revenues at Rs. 3743.6 Cr. in FY09 grew at a CAGR of 41% in last 4 years

AUM at Rs. 9,168.4 Cr. as on 31st Mar09 more than doubled in last 2 years

Strong support from promoters : Aditya Birla Nuvo & Sun Life Financial

Infused Rs. 603 Cr. in FY07-08 to fund growth of the business

Further capital infused Rs. 725 Cr. during FY08-09

Revenues (Rs. Cr.)

938

1,5591,930

3,710

BSLI Market Share trend (%)13.7%

6.6%

8.1% 8.2% 8.5%9.0%

3.0% 2.5%1.6%

2.9%4.2% 4.2% 4.3% 4.3%

5.3%

8.2%

2004- 05 2005- 06 2006-0 7 2007- 08 YTD J un'08 YTD Sep'08 YTD D ec '08 YTD Mar '09

Amongst Private Players Overall

#2

Source : IRDA

#5

3,744

P 50


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Indian Mutual Fund Industry : Today

Assets Under Management Average AUM : Rs. 4,933 billion as on 31st March 2009

Present customer penetration : 1.9% and AUM / House hold financial savings: 3.8%

Every 1% increase in AUM penetration will lead to an increase of Rs. 400 billion in AUM size

Expected face of Indian Mutual Fund Industry in 2011

AUM : Institutional ~ Rs. 4,500+ billion (CAGR 27%); Retail ~ Rs. 5,900+ billion (CAGR 41%)

Revenues : Institutional ~ Rs. 9+ billion (CAGR 28%); Retail ~ Rs. 36+ billion (CAGR 39%)

Geographical penetration to increase substantially

Contribution of top 15 cities to reduce from current 80-85% to around 50%

Mutual Fund : Indian industry overview

Indian Mutual Fund Industry : Market Share(in terms of average AUM)

As on 31st Mar09

Source: Internal Research and few sectoral reports

Source : AMFI50:50 JV with Sunlife, Canada

Others

36.6%

Reliance

16.4%

UTI

9.9%

Birla Sunlife

9.5%

SBI

5.3%

ICICI

10.4%

HDFC

11.7%


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Branches (Nos.)

To be amongst top 3 players

8

18

29

Mar'07 Mar'08 Mar'09

32

78

115

Mar'07 Mar'08 Mar'09

Created history by winning Mutual Fund House of the Year award by

CNBC TV18-Crisil, for the second year in a row

Awarded India Onshore Fund house by Asia Investor in 2009

Runner up in Best Mutual Fund House Category by Outlook Money NDTV

Profit Awards 2008

Ranks 5th in India with 9.5% share in Mar09 up from 6.8% in Mar08

Average domestic AUM as on 31st

March 2009 at Rs. 47,096 Cr.Achieved 31% growth in average AUM during the financial year while industry

de-grew by 7%; highest growth rate amongst top 5 players

Avg. PMS AUM grew from Rs. 16 Cr. in Mar08 to Rs. 287 Cr. in Mar09

Avg. offshore AUM (all equity) stood at Rs. 1,265 Cr. as on 31 st Mar09

Scaled up multi-channel non-polarised network to support growth

Distribution network trebled since Mar07 to reach 115 branches & over 29K

financial advisors in Mar09

Offering over 90 Mutual Fund schemes including 2 offshore funds

Key Enablers : Consistent investment performance, building offshore

proposition, CRM, PMS and alternate channels

Average AUM (Incl. offshore & PMS)(Rs. Cr.)

10,072

5,85966

16,709

7,04723

28,381

10,01416

42,489

5,872287


Debt & Liquid Equity PMS

15,997

23,779

38,411

48,649

FinancialAdvisors (000)

Birla Sun Life Asset Management : Mutual Fund House of the Year

Key Aspiration

CAGR

45%

Domestic avg. AUM crossed Rs. 50,000 Crores mark in April 2009 P 51


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Birla Sun Life Distribution

Nuvo acquired remaining 50.01% stake in BSDL for Rs. 7.6 Cr. in March 2009

BSDL became wholly owned subsidiary of Nuvo w.e.f. 31 st March 2009

Lines of business

Private Client Group Wealth management advisory services to HNIs

Channel Partners - Sub-broker model to distribute mutual funds

Institutional Investment advisory services to Corporates

Insurance Direct Sales force based life insurance selling

Over 2,50,000 customers country-wide

Nationwide presence with 44 branches and over 4,500 channel partners

Key Enablers

Expanding presence across spectrum of financial products

Market and customer segmentation

To be amongst top 5 players in the wealth management spaceKey

Aspiration

P 52


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Apollo Sindhoori

Nuvo acquired 76% stake in Apollo Sindhoori Capital Investments Ltd. (ASCIL), a retail broking

company, in Feb-Mar09 for Rs. 251.6 Cr.

ASCIL became subsidiary of Nuvo w.e.f. 6th March 2009

A leading player with over 14 years of experience in the retail broking business in India

Lines of business

Trading facility in Equity segment and Derivative segment on NSE & BSE.

Trading facility in commodity segment, including bullion, oils, gaur seed etc. through a subsidiary

Depository Participant [DP] services of NSDL and CDSL at major locations

Online bidding for IPOs

Distribution of Mutual Funds

Strong distribution network of over 240 own and 840 franchisee branches across over 150 cities

A large 175,000 customers base

Key Enablers

Deriving synergies through cross selling

Capitalising on distribution reach P 52


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Birla Global Finance

Lines of business

NBFC (BGFCL)

Loan against Securities

IPO financing

Corporate Finance

General Insurance advisory (BIASL)

Highest rating of A1+ assigned by ICRA for short term debt

NBFC business performed well during FY09 despite depressed

stock markets

Key Enablers

Expanding presence across a range of asset products

Market and customer segmentation

Key

Aspiration

To be among top 5 NBFCs in India by profitability

Birla Global Finance Company Limited

Birla Insurance Advisory and

Broking Services Limited

P 52


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Business Process Outsourcing : Industry overview

Outsourcing of support services offers significant opportunities in the sector

Global offshore BPO market to reach USD 61 billion by FY12-13 from USD 26 billion in FY07-08E

Share in global BPO spend (incl. captive) currently at 6% is expected to grow to 9% by FY12-13

Indian BPO industry expected to grow at a CAGR of 22% to USD 29.7 billion by FY12-13

KPO segment is estimated grow at a CAGR of 32% to reach USD 5.3 billion by FY12-13

Aditya Birla Nuvo holds 88.3% share


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Auto

54%

Telecom

7%Others

3%Hi-Tech

18%

BFSI

18%

Aditya Birla Minacs : Global delivery solution provider


Asia pacific N or th Amer ica

Revenues (Rs. Cr.)Transworks, a small BPO acquired in 2003

Nurtured the business to grow multifold in 2 years

Acquired Minacs in August 2006, a leading Canadian BPO with annual

turnover of USD 250 million & re-branded as Aditya Birla Minacs

Ranked among Top-5 outsourcers in India in FY07-08 (Source : NASSCOM)

Amongst the top-100 global outsourcing service providers in 2008

(Source : International Association of Outsourcing Professionals, 2008)

Delivering solutions to 54 clients across 50 countries in 41 languagesthrough 27 centres in US, Canada, Europe, India & Philippines

Operating through 8,326 seats and 11,621 employees

Clientele includes 27 Fortune 500 clients

Business impacted by global slowdown, under utilisation of capacity

and forex loss

Special efforts initiated to improve profitability

Key Enablers

Controlling overheads besides optimising seats and sites utilisation

Migration towards new low cost geographies

Continue to grow high value KPO segment

108 163

1,016

1,578 1,687

Revenues Mix (FY09)

P 53


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Garments : Indian industry overview

Indian ready made garments (RMG) industry expected to reach ~ Rs. 2.4 trillion in 2012

from ~ Rs. 1.3 trillion in 2007 growing at a CAGR of 12.7%

Domestic RMG market is expected to grow at a CAGR of 13% to reach ~ Rs. 1.6 trillion in 2012

Organised apparel retailing is expected to grow faster at a CAGR of 24-28% over next 5 years

Share of organised apparel retailing is expected to reach ~ 30-40% in 2012 from current ~ 20%

Entry of international players will intensify the competition

The ultimate status symbol Premium formal wear Friday Dressing

The Honest Shirt

Life Style Brands

Popular Brands

Madura Garments Brands

Fun, Fashion and Family


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Madura Garments : Leadership built by strong brands


Branded Garments Contract Exports

Revenues (Rs. Cr.)

Branded Garments

Revenues almost doubled in last 3 years to Rs. 906 Cr. in FY09

Successful migration from shirt to lifestyle proposition

Brand leadership : Louis Philippe, Van Heusen, Allen Solly & Peter

England; Strategic distributorship tie-up with leading brand Esprit

Launched sub-brands to serve various customer segments

Key Enabler : Enlarged presence in apparel retailing space

Nuvo grew controlled retail space rapidly from almost nil in 2001 to 7.02

Lacs sq. ft. across 340 Exclusive Brand Outlets (EBOs) as on 31st Mar09

Scaled up retail channel led to 33% YoY growth during FY09 amidst

lower footfalls and higher discounting

Higher lease rentals due to retail space expansion and high

discounting lowered profitability during FY09

473

621

8301,026

Retail Penetration

Individual Focus through four Strategic Business Units (SBUs)

Life Style Brands Louis Philippe, Van Heusen, Allen Solly

Mens Exclusive Life Style Retail Stores The Collective

Peter England and Peter England People Retail Stores

Contract Exports Madura Garments Export Limited

168

340

Mar'07 Mar'09

309

702

Mar'07 Mar'09

Square Feet(000)

EBOs(Nos.)

1115

P 55


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Madura Garments : Launched two new formats

Contract Exports

One of the largest branded garments exporters in India

Manufacturing Capacity expanded in Aug07 to 15.4 million pieces

Scaling full service provider segment in US, UK and India

Key Enablers

Improving capacity utilisation

Reducing dependence on USD business Expanding European and domestic business

Large format apparel retailing : Pursuing high end apparel retailing through two new formats

Launched Peter England people- A mass family brand

5 stores of an average size of 12-15K sq. ft. launched in 2008

Launched THE COLLECTIVE - An international shopping experience

One store spanned across 17.5K sq ft opened in Bangalore offering mens lifestyle wardrobe collection

Offers Madura garments fashion brands as well as international brands under one roof

P 55


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Carbon Black : Industry overview

A key ingredient in Tyre processing

Tyre sector accounts for about 65% of Carbon Black demand

Global Carbon Black industry has a production capacity of 10.7 million MT

Global demand for Carbon Black to reach ~ 11 million MT in 2010 growing at a CAGR of 3.6%

Indian Carbon Black industry has a production capacity of 0.62 million MT

Domestic Carbon black demand estimated to grow at ~ 6.6% p.a. from 2007-08 to 2012-13

Usage of Carbon Black

25%

Tyre

65%

Belts & hoses

10%

Rubber

15%

Printing Ink and

other specialty

10%


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Hi-Tech Carbon

77

92

132

153

50


467564

739

864

1096


Revenues (Rs. Cr.)

PBDIT (Rs. Cr.)

Aditya Birla Group is 4th largest producer globally (Capacity : 750K MTPA)

Operating in 4 countries : Thailand, Egypt, India & China

Achieving synergies through marketing under brand Birla Carbon & central

procurement of feed stock (CBFS)

Nuvo is 2nd largest domestic player with about 36% market share

Lowest cost producer in India and has coastal location at one plant

Value contribution from energy sales

Capacity doubled from 110K MTPA in 2002 to 230K MTPA in 2007

Out of this, 60K MTPA capacity was added in July07

Environmental clearance received & project activities initiated in

Western India for Greenfield expansion by 75K MT

Growth achieved in revenues in FY09 while sharp volatility in crude oil

prices impacted profitability across the industry

P 56


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Indo Gulf Fertilisers has 4.8% (approx.) domestic market share

Strong brand Birla Shaktiman is preferred choice of farmers

Also offering value adding variety Neem coated Krishi Dev

Repositioning itself as a Total agri-solution provider

Scaling agri-inputs & outputs trading business

Performance in FY08 impacted due to shutdown for

about 2 months for annual maintenance & subsequent breakdown

Posted significant growth in FY09 supported by higher volumes and

receipt of higher subsidies for higher capacity utilisation

Indo Gulf Fertilisers : Total agri-solution provider

Acute deficit of urea in India Approximately 25% of the demand is imported

Demand expected to grow by ~ 6-7% p.a. to reach 35.4 million MT in FY2012

Industry moving towards non-regulated agri-products

Demand for non-regulated agri-inputs like seeds, pesticides, nutrients etc

expected to grow at 5-7% p.a.

136 130 130

102

229


676647

785 787

1250


Revenues (Rs. Cr.)

PBDIT (Rs. Cr.)

P 57


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Aditya Birla Insulators is largest domestic producer & 4th largest globally

Capacity 38,800 TPA at two plants

Further capacity expansion by 10,000 TPA in Apr09

is under trial run

Forayed in composite insulators through installation of pilot plan in Mar09

Power Grid corporation of India and State Electricity Boards (SEBs),

ABB, Areva, Siemens etc. are amongst major customers

In FY09, revenues at Rs. 424.8 Cr. and PBDIT at Rs. 122.8 Cr.

Operating margin at 28.9% and ROACE at 43%

Aditya Birla Insulators

Revenues (Rs. Cr.)

PBDIT (Rs. Cr.)

6

44

54

136

123


186

247 241

399 425


Insulators are used in power generation, Transmission and distribution

(T&D) and by Original Equipment Manufactures (OEMs)

Global T&D market expected to grow at a CAGR of 6% by 2010;

expected growth in India higher at ~ 20%+ p.a. (Source : Enam research)

Areva, ABB, Siemens control 45% of global market

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2nd largest producer and largest exporter of VFY in India with 38%

market share

Integrated facilities

Capacity : VFY - 16,400 TPA; Caustic soda - 250TPD

Cost effective 34.5 MW captive power plant

Domestic VFY market has limited growth prospects

Growth is driven by quality exports to extract premium

Became largest Indian VFY exporter for consecutive fourth year withabout 50% share in VFY exports from India in FY09

Rs. Cr.

352

88

386

90

441

120

476

124

537

123


Revenues PBDIT

Domestic market leader in Linen segment

Branding & promoting linen fabric under Linen Club

Spinning & weaving capacities 15,084 spindles & 106 looms

One of the largest player in Wool segment in India

Worsted yarn capacity at 25,548 spindles

Wool combing capacity at 7 card machines

Jayashree Textiles : Niche play459

33

528

57

625

67

600

68

573

54


R even ues PBD IT

Rs. Cr.

Indian Rayon : VFY and Chlor-alkali

P 60

P 59


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Business Outlook and Strategy


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Strategy Going Forward : Growth Businesses

Telecom : Achieving Pan India presence

Speedy roll out in remaining six circles and increasing presence in existing circles

Accelerating profitability on rollout capex incurred in new circles & expansion capex in existing ones

Improving quality of services in Punjab & Karnataka circles as per Idea standards

Deriving full benefits from Tower Joint Venture, international long distance (ILD) license held by

Spice and TMIs presence in ten Asian countries

Financial Services : Striking balance between growth and profitability

Life Insurance / Asset Management

Improving productivity and augmenting relationships across distribution channels

Building newer channels to achieve sustainable growth in future

Launching contemporary products to optimise product suite

Delivering consistent & superior returns to customers

Increasing share of high margin equity & PMS AUM along with expanding foot print in overseasmarket and real estate arena in the Asset Management business

Deriving synergy across business verticals to achieve vision

Utilising the client base and distribution network of Apollo Sindhoori for cross selling

Delivering differentiated and superior but uniform customer experience


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Strategy Going Forward : Growth Businesses

BPO : Achieving profitable growth

Improving seats utilisation and sites rationalisation to reduce overheadsImproving SLA and client retention

Off-shoring support functions and supporting new business from low cost locations

Thrust on growing high margin KPO segment

Leveraging Aditya Birla Group Ecosystem particularly in the Telecom and Insurance verticals

Garments : Improving profitability

Improving retail productivity with emphasis on product and merchandise grid for higher sell through

Controlling overheads and enhancing supply chain efficiency

New initiatives being re-modeled to curtail losses

Regaining profitability in the garments exports business by right sizing the business and cost

reduction.


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Carbon Black

Regaining profitability by managing CBFS procurement costsAligning completion of Greenfield expansion by 75,000 MTPA with revival of demand

Fertilisers

Improving profitability by higher capacity utilisation and by scaling up agri-product trading segment

Insulators

Full utilisation of capacity expansion by 10,000 MTPA

Augmenting capacity further by 4,000 MTPA

Yield enhancement to improve margins

Rayon

Improving yarn quality to derive premium in exports markets

Textiles

Expanding presence in high margin retail segment under Linen Club brand

Finance

Reducing Debt burden

Strategy Going Forward : Value Businesses


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Financial PerformanceFinancial Performance FY08FY08--0909


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39

Rs. Cr.

Revenues : FY 2008-09

3,953

4,786

FY08 FY09

21%

ConsolidatedStandalone

11,861

13,643

FY08 FY09

15%


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40

Consolidated Revenues - Segmental

Revenues

2008-09 2007-08

Telecom (Nuvo's share) @ 2, 890. 2 2, 135. 6

Premium income 4, 414. 3 3, 223. 1

(670.7) 487.3

BPO 1,687.2 1,577.7

Garments (Incl. apparel retail) 1,115.8 1,025.8

Other Financial Services 249.6 197.5

IT Services 95.4 101.1

Carbon Black 1,095.6 863.8

Fertilisers 1,249.8 787.5

Insulators 424.8 398.9

Rayon 537.1 476.0

Textiles 573.2 600.3

Inter-unit Elimination (19.1) (13.4)

Consolidated Revenues 13,643.2 11,861.1

Standalone Revenues 4,786.2 3,953.1

Full Year

Life InsuranceInvestment income / (loss)

on policyholders' funds

Rs. Cr.

35%

37%

15%

7%

9%

59%

21%

51%

27%

7%

@Idea is consolidated at 31.78% till 12th Aug08 and at 27.02% afterwards. Full financial numbers are as under:

13%

26%

Idea Cellular (Telecom) 10,125.2 6,720.0


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41

Consolidated revenues grew by 15%

Consolidated net income from operations grew by 15% from Rs. 11,861.1 Cr. to Rs. 13,643.2 Cr.

Idea Cellular revenues grew by 51% driven by subscribers growth and launch of new circles

Nuvos share could grow only by 35% due to dilution of Nuvo stake in Idea from 31.78% to 27.02%

While Life Insurance business witnessed 37% growth in net premium income, loss on policyholders

investments arrested revenues growth

Other financial services grew considerably in revenues despite depressed market conditions

World-wide slowdown impacted revenues growth in BPO and IT services businesses in the second half

In the Garments business, sales from expanded retail channel grew by 33% year on year while lowerwalk-ins & prolonged discounting reduced overall growth to 9%

Revenues in the contract garments exports business were impacted due to reduced order flow

In the fertilisers business, sharp rise in natural gas and naphtha prices resulted in higher subsidies while

volumes grew by 23%

Rise in feedstock prices pushed realisation up in Carbon black business, while sales volumes de-grew

by 5%

Improved product mix in the Rayon and the Insulators businesses resulted in higher realisation

Revenues in the textiles business were impacted by slowdown

continued


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Standalone FinancialRs. Cr.

Particulars

2008-09 2007-08

Net Sales 4,687. 6 3, 842. 3

Other Operating Income 98.6 110.8

Net income from operations 4,786. 2 3, 953. 1

Operating Profit (PBDIT) 585.7 633.9

Interest (Net) 257.4 179.0

Gross Profit (PBDT) 328.3 454.9

Depreciation/ Amortisation 166.0 141.1

Exceptional Gain / (Loss) - 0.7

Provision for Taxation (Net) 24.9 71.5

Net Profit 137.4 243.1

Full Year

Interest costs grew from Rs. 179 Cr. to Rs. 257.4 Cr. due to higher debt level to fund :

Capex requirements in Garments, Rayon, Carbon Black and insulators businesses per se

Investments in Life Insurance and other financial services

Increased working capital requirement in Carbon black and Garments businesses per se


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43

Standalone Operating ProfitRs. Cr.

Branded Garments 1.7 67.1

Carbon Black 49.7 152.6

Fertilisers 228.5 102.4

Insulators 122.8 136.3

Rayon 123.0 124.4

Textiles 54.2 67.9

Corporate / Others 5.9 (16.8)

PBDIT 585.7 633.9

PBDIT2008-09

Full Year

2007-08


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Standalone operating profit

Standalone operating profit de-grew from Rs. 633.9 Cr. to Rs. 585.7 Cr.

In the Garments business profitability was impacted due to high lease rentals and prolongeddiscounting.

The Carbon Black business was impacted due to unprecedented volatility in the feed stock prices

The Fertilizers business posted its highest ever profitability driven by higher capacity utilisation,

surplus ammonia sales and scaling of agri-products trading segment

The Rayon business maintained its profitability amidst higher sulphur and wood-pulp prices

prevailing for a large part of the year

The Insulators business was affected by higher input and fuel prices

The Textiles business was impacted due to lower volumes consequent to slowdown

Usage of high prices stock impacted wool industry due to sudden fall in commodity prices

continued


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45

Consolidated Net Profit

2008-09 2007-08

Telecom (Nuvo's share) @ 259.1 331.2

BPO & IT (127.9) (86.3)

Life Insurance (702.1) (445.3)

Asset Management (Nuvo's share 50%) @ 3.9 1.4

Other financial services 26.9 30.7

Contract Garments Manufacturing (83.8) (22.0)

Apparel R etail (128.7) (25.5)

Others (0.5) 0.4

Total JVs / Subs (753.1) (215.3)

Less: Contra / Minority Interest (185.1) (123.1)

Nuvo's Share in JVs/Subs (568.0) (92.3)

Nuvo Standalone 137.4 243.1

Nuvo Consolidated (430.5) 150.8

Net Profit

Full Year

Rs. Cr.

@Idea is consolidated at 31.78% till 12th Aug08 and at 27.02% afterwards. Full financial numbers are as under:

Idea Cellular (Telecom ) 900.9 1042.3

Birla Sun Life AMC (Asset Management) 7.9 2.8


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Consolidated Net Profit

Consolidated net loss at Rs. 430.5 Cr. against net profit of Rs. 150.8 Cr. last year.

In the telecom business, despite strong growth in revenues, bottom line was constrained due tostart up costs of new roll outs and share of losses in Spice and Indus tower

The BPO business was impacted by site closure costs and forex losses

In the Life Insurance business, the infrastructure created for growth led to new business strain

affecting the bottom-line

Other financial services posted satisfactory performance amidst sector challenges

The contract exports business suffered forex loss & lower capacity utilisation due to reduced order

flow

Apparel retail subsidiaries incurred start up losses due to investment in infrastructure and brand

building

continued


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47

Consolidated FinancialRs. Cr.

Particulars

2008-09 2007-08

Net Sales 14,200.4 11,249.6

Investment income / (loss) on policyholders' funds (670.7) 487.3

Other Operating Income 113.4 124.2

Net income from operations 13,643.2 11,861.1

PBDIT 772.5 1,101.3

Depreciation 695.9 524.9

PBIT 76.5 576.3

Net Interest 624.1 425.0

Profit Before Tax (547.6) 151.3

Exceptional Gain / (Loss) (2.2) 0.7

Provision for Taxation (Net) 75.3 125.9

Minority Interest (194.6) (124.6)

Net Profit after minority interest (430.5) 150.8

Full Year


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Business Financials


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49

Telecom Idea Cellular Ltd.

Particulars

2008-09 2007-08

13 Service areas 38.89 24.00

Punjab & Karnataka 4.13

Revenues 10,125.2 6,720.0

PBDIT 3,049.6 2,375.7

PBIT 1,645.7 1,498.8

PAT 900.9 1,042.3

Net Worth 13,828.6 3,544.6

Total Debt 8,916.5 6,515.4

Capital Employed 22,745.1 10,060.0

ROACE (Annualised) (%) 10.0 18.2

Full Year

Subscribers

(Nos. Million)

Rs. Cr.

Revenues jumped YoY by 51% to Rs. 10,125.2 Cr.

supported by growth in subscribers

Spice results since 16th Oct08 have been consolidated at

41.09% as a Joint Venture

Net Profit lower at Rs. 900.9 Cr. vis--vis Rs. 1,042.3

Cr. last year

Cash profit grew from Rs. 1,991.6 Cr. to Rs. 2,341 Cr.

despite start up losses in Mumbai & Bihar

Share in losses of Spice and Indus towers lowered net

profit by Rs. 74.5 Cr.

Depreciation rose from Rs. 876.8 Cr to Rs. 1,403.9 Cr.

due to new roll outs, Spice & Indus Consolidation and

capacity & quality enhancement efforts in existing circles,

benefit of which will accrue going forward

Financial position and leveraging capacity of Idea

strengthened through two strategically timed deals

Pan India presence will drive economies of scale and

operational synergies

P 12


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50

Birla Sun Life Insurance Company Ltd.Rs. Cr.

2008-09 2007-08

First Year Premium

Individual Business 2,480.8 1,741.0

Group Business 343.2 224.0

Total First Year Premium (Gross) 2,823.9 1,965.0

Renewal Premium (Gross) 1,753.7 1,307.2

Net Premium Income(Net of reinsurance and service tax) 4,414.3 3,223.1

Investment income / (loss) on

policyholders' funds (670.7) 487.3

Revenues 3,743.6 3,710.4

Net Profit/(Loss) (702.1) (445.3)

Share Capital 1,879.5 1,274.5

Assets under management 9,168.4 6,892.7

Full Year

Particulars Achieved 44% YoY growth in new business premium

income at Rs. 2,823.9 Cr in FY09

Garnered market share amidst slowdown woes

supported by expanded customer reach and launch of

contemporary products to suit market conditions

Traditional Life, Pension plan, Health Plan and Platinum

Plus-II launched during the year

Net loss higher at Rs. 702.1 Cr. vis--vis Rs. 445.3 Cr.incurred last year

Initial strain of growing size of new business premium

coupled with expansion of distribution reach

P 18


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Birla Sun Life Asset Management Co. Ltd.Rs. Cr.

2008- 09 200 7-08

Equity 4,607 7,525

Debt & Liquid 42,489 28,381

Domestic AUM 47,096 35,906

Off shore (All Equity) 1,265 2,489

PMS 287 16

Total AUM 48,649 38,411

177.9 119.3

7.9 2.8

Particulars

Average AUM

Revenues

PAT

During the year, revenues grew by

49% from Rs. 119.3 Cr. to Rs. 177.9 Cr.

Net profit increased from Rs. 2.8 Cr. to

Rs. 7.9 Cr.

P 20


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Other Financial ServicesRs. Cr.

2008-09 2007-08

Revenues 120.3 97.0

PAT 29.6 22.7

Capital Employed 210.9 200.3

Revenues 21.1 37.5

PAT (9.1) 2.7


Revenue 16.5 10.6

PAT 4.8 3.2

Revenue 83.3 122.2

PAT 1.2 22.0

Apollo Sindhoori Capital Investments Limited

Birla Insurance Advisory & Broking Services Limited

Full Year

Particulars

Birla Global Finance Company Limited

Birla Sun Life Distribution Company Limited

Birla Global Finance (NBFC) posted excellent

performance despite depressed stock markets

Revenues grew by 24% to Rs. 120.3 Cr. and net profit

rose by 31% to Rs. 29.6 Cr.

Revenues of Birla Insurance Advisory grew from

Rs. 10.6 Cr. to Rs. 16.5 Cr. and net profit rose from

Rs. 3.2 Cr. to Rs. 4.8 Cr.

Impacted by volatility and downturn in stock

market, revenues of Birla Sun Life Distribution

Company de-grew from Rs. 37.5 Cr. Rs. 21.1 Cr.

Investment in people, process and technology related

infrastructure strained bottom-line

Reported net loss of Rs. 9.1 Cr. vis--vis net profit of

Rs. 2.7 Cr. attained last year

Apollo Sindhoori reported revenues of Rs. 83.3 Cr.

and net profit of Rs. 1.2 Cr.

Volumes in the retail broking business impacted by

sharp volatility in the capital markets P 21-23


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BPO Aditya Birla MinacsRs. Cr.

2008-09 2007-08

Operating Seats (Nos.) 8,326 9,089

Employees (Nos.) 11,621 12,908

Revenues 1687.2 1577.7

CAD Mn 348.9 357.1

Asia Pacific USD Mn 53.6 45.5

PBIT (61.0) (26.5)

- North America (48.7) (20.4)

- Asia Pacific (12.3) (6.1)

Net Profit/(Loss) (121.1) (88.9)

Full Year

Particulars

North America

Focusing on efforts critical to improve profitability

and mitigate impact of global slowdown

Three loss making sites in Canada closed by shifting

their operations to cost effective sites

Incurred cost of Rs. 27 Cr. for closure of sites

which will reduce overheads going forward

Two new sites will be launched in India adding over

1,000 seats

Revenues up by 7% to Rs. 1687.2 Cr. supported by

18% growth in Asia Pacific

Revenues in North America impacted due to lower

business from existing clients suffering slowdown

Business reported PBDIT (before one-time site

closure costs) at Rs. 31.9 Cr.

Savings in overheads made up for higher manpower

costs and forex loss

Net loss increased from Rs 88.9 Cr. to Rs 121.1 Cr.

due to unabsorbed interest and depreciation costs

P 25


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IT Services PSI Data SystemsRs. Cr.

2008-09 2007-08

Revenues 95.4 101.1

PBIT (2.6) 6.5

PAT (6.8) 2.5


ParticularsFull Year

IT services business reported revenues at Rs. 95.4 Cr.

and net loss of Rs. 6.8 Cr.

Weak order flow and resulting forex loss impacted

revenues and profitability

PSI de-listed from the BSE w.e.f. April 6, 2009

PSI will become back end IT solution provider for

BPO subsidiary Aditya Birla Minacs


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Garments Madura Garments

2008-09 2007-08

Shirts (A) 511.7 449.5

Trousers (B) 197.8 193.0

Suits (C ) 90.7 80.3

Others (D) 106.3 102.8

Revenues (A+B+C+D) 906.4 825.7

Op erating Pro fit b ef ore ad sp end 5 0.6 1 15 .5

Advt. Expenses 48.9 48.4PBDIT 1.7 67.1

PBIT (48.5) 35.1


Full Year

Branded Garments

Rs. Cr.

Branded Garments

Revenues up by 10% at Rs. 906.4 Cr. vis--visRs. 825.7 Cr. attained last year

Growth was impeded by lower walk-ins and prolonged

discounting to meet competition

Revenues from retail channel rose by 33% supported

by expanded retail space

Higher rentals on expanded retail space and

discounting pressure impacted bottom-line

Apparel Retail (PEOPLE and COLLECTIVE)

Revenues at Rs. 20.8 Cr. & net loss at Rs. 128.7 Cr.

including business building & brand promotion costs

Contract Manufacturing

Revenues at Rs. 198.8 Cr. and net loss at

Rs. 83.8 Cr.

Weak order flow / order cancellation led to

forex loss and lower capacity utilisation

2008-09 2007-08

Sales Volume (Lacs Pcs) 65.9 66.7

Revenues 198.8 209.1

PBIT (68.6) (14.0)

PAT (83.8) (22.0)


Full Year

Contract Exports

P 28


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Carbon Black Hi tech CarbonRs. Cr.

2008-09 2007-08

Production (MT) 202,076 215,103

Capacity Utilization % 87.9 102.4

Sales Volumes (MT) 203,827 214,617

Realisation (Rs./MT) 51,521 38,485

Revenues 1,095.6 863.8

PBDIT 49.7 152.6

OPM (%) 4.5 17.7

PBIT 24.7 130.3



Particulars

Full YearRevenues at Rs. 1095.6 Cr. grew by 27% from


High feedstock (CBFS) prices (linked to crude oil

prices) are reflected in higher realisation

Sales volumes de-grew by 5% due to lower off

take from tyre customers, particularly in exports

market

Operating profit reduced from Rs. 152.6 Cr. to

Rs. 49.7 Cr.Consumption of high priced CBFS & subsequent

steep fall in crude oil prices impacted

Lower sales volumes and consequent lower

capacity utilisation also strained bottom-line

Demand from tyre industry has improved in

Q4FY09 compared to previous quarter

Capacity utilisation at Hi tech carbon has improved

from 67% in Q3FY09 to 79% in Q4FY09

P 30


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Fertilisers Indo Gulf FertilisersRs. Cr.

2008-09 2007-08

Urea Production ('000 MT) 1,070 881

Urea Sales ('000 MT) 1,073 870

Revenues 1,249.8 787.5

Urea 1,135.2 722.3

Agri-Inputs trading 114.5 65.1

PBDIT 228.5 102.4

OPM (%) 18.3 13.0

PBIT 209.7 84.5



Full Year

Particulars

Revenues grew by 59% from Rs. 787.5 Cr. to

Rs. 1249.8 Cr. supported by 23% volume growth

Sharp rise in spot natural gas and naphtha prices

reflected in higher subsidies

Revenues from agri-products marketing grew to

Rs. 114.5 Cr. vis--vis Rs. 65.1 Cr. last year

Operating profit more than doubled to Rs. 228.5 Cr.

Higher volumes of urea and agri-products contributed

coupled with subsidy arrears

Fetched incentives for achieving higher than targeted

production as fixed under new policy

Sale of carbon credits fetched Rs. 4.6 Cr. (vis--vis

Rs. 2.5 Cr. last year)

Provided mark to market loss of Rs. 5.1 Cr. on

fertilisers bonds (vis--vis Rs. 3.2 Cr. last year)

P 31


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Insulators Aditya Birla InsulatorsRs. Cr.

2008-09 2007-08

Production (MT) 32,904 32,921



PBDIT 122.8 136.3

OPM (%) 28.9 34.2

PBIT 108.4 122.5



Full Year

Particulars

Revenues grew from Rs. 398.9 Cr. to Rs. 424.8 Cr.

supported by higher realisation

Improved product mix pushed realisation up

Operating profit decreased to Rs. 122.8 Cr. from


Operating margins reduced to 28.9% due to rise in

fuel & input costs

P 32


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Rayon India Rayon

2008-09 2007-08

VFY

Production (MT) 16,625 17,000

Capacity Utilization (%) 101.4 103.7


Realisation (Rs./Kg.) 203.7 173.3

Revenues (Rs. Cr.) 342.1 310.6Chemical

ECU Realisation (Rs./MT.) 22,671 19,999

Revenues (Rs. Cr.) 195.0 165.4

Total Revenues 537.1 476.0

PBDIT 123.0 124.4

OPM (%) 22.9 26.1

PBIT 89.8 91.5



Full Year

ParticularsIndian Rayon sustained its performance amidst

challenges of higher input / fuel costsBusiness revenues grew by 13% from Rs. 476 Cr.

to Rs. 537.1 Cr.

VFY revenues up by 10% at Rs. 342.1 Cr.

Sales volumes at 16,792 MT lower by 6% due to

focus on finer denier yarn

VFY realisation rose by 18% due to improvedproduct mix and pass on of rise in input costs

Chlor-alkali revenues rose by 18% to Rs. 195 Cr.

primarily due to higher ECU realisation

Operating profit marginally decreased from

Rs. 124.4 Cr. to Rs. 123 Cr.

Higher VFY realisation compensated lower VFY

volumes and high sulphur & wood-pulp prices

Rise in coal and salt prices offset by higher ECU

realisation in the Chlor-alkali segment P 33


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60

Textiles Jaya Shree TextilesRs. Cr.

2008-09 2007-08

Linen Segment 183.0 169.7

Wool Segment 390.2 411.6

Continued operations

(Linen and Wool)573.2 581.3

Discontinued (Synthetic Yarn) - 19.1


PBDIT 54.2 67.9

PBIT 32.7 48.7



Particulars

Full Year Domestic and exports demand hit by global

slowdown and liquidity crunchTextiles industry witnessed substantial production cut

across the value chain

Business revenues decreased from Rs. 600.3 Cr. to

Rs. 573.2 Cr. due to lower fabric volumes

Operating profit lower at Rs. 54.2 Cr. vis--vis

Rs. 67.9 Cr. achieved in the previous yearLower volumes coupled with high flax fiber prices

impacted

Usage of high prices stock impacted wool industry due

to sudden fall in commodity prices

Last year profit includes gain on sale of fixed assets

and gain from sale of carbon credit

Recent imposition of anti dumping duty on Linen

Fabric will benefit domestic industry.

P 33


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61

AnnexureAnnexure


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62

Shareholding Pattern Aditya Birla Nuvo

Mutual funds

4.6%

Banks, FI's &

Insurance

Co's

11.9%

FII's

20.5%

NRI's/ OCB's

1.2%

GDRs

3.4%

Other

Corporates

2.6%Individuals

14.2%Promoters

41.5%

Note:

95.58% of shares are in dematerialised formFace value of Rs. 10 per share

Well diversified shareholding pattern

Category As on 31st March 2009

No. of Shares % of No. of

held Shareholding Shareholders

Promoters 39,444,787 41.5 21

Mutual funds 4,414,293 4.6 88

Banks, FI's & Insurance Co's 11,303,869 11.9 114

FII's 19,487,623 20.5 147

NRI's/ OCB's 1,168,909 1.2 5,789

GDRs 3,277,725 3.4 3Corporates & others 2,447,152 2.6 1,794

Individuals 13,464,932 14.2 147,541

Total 95,009,290 100 155,497


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63

Consolidated Profit and Loss and Balance Sheet SnapshotRs. Cr.

Particulars Ma rch Ma rch

2009 2008

Equity 95.0 95.0Pre fe re nce Sha re Capital 25.5 50.0

Ne t W orth 5,894.4 4,032.9

Minority Inte rest 179.2 174.4

Tota l De bts 8,894.0 6,647.9

De fe rre d Tax Liabilities 214.0 226.2

Ca pital Employe d 15,181.6 11,081.3

Policyholders' funds 8,596.9 6,484.7

Tota l Liabilities 23,778.5 17,566.0

Goodw ill on consolida tion 3,422.6 2,571.0

Ne t Block 6,812.8 5,447.8

Ne t W orking Ca pital 926.4 1,433.0

Long Term Inve stme nts 218.9 93.0

Life Insura nce I nve stm ents 9, 168. 4 6,892.7

Ca sh & Ca sh Equivalents 3,229.5 1,128.4

ROCE (%) (Annua lise d) 0.5 5.3

RONW (%) (Annualised) (7.3) 3.7

Book Va lue (Rs.) 620.4 424.5

Tota l De bt Equity (x ) 1.5:1 1.6:1

Particulars

2008-09 2007-08

Net Turnove r 13,643.2 11,861.1

PBDIT 772.5 1,101.3

PBDIT Margin (%) 5.7 9.3


PBDT 148.3 676.2

Net Profit(after Minority Interest) (430.5) 150.8

Annua lise d EPS (Rs.) (45.7) 16.0

Annua lise d CEPS (Rs.) 26.8 76.3

Full Year


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64

Standalone Profit and Loss and Balance Sheet Snapshot

Ma rch Ma rch

2009 2008

Equity 95.0 95.0

Net W orth 4,121.7 4,023.7

Long Te rm De bt 2,651.2 1,841.2

Short Te rm De bt 1,848.0 902.2

Tota l De bts 4,499.2 2,743.4

Defe rre d Ta x Lia bilitie s 180.2 200.3Capita l Employe d 8,801.1 6,967.5

Net Block 1,605.0 1,501.6

Net W orking Capita l 1,393.9 1,361.4

Long Te rm Inve stme nts 4,982.4 3,909.3

Ca sh a nd Ca sh Equiva le nts 819.8 195.2

ROACE (%) (Annua lise d) 5.5 7.8

ROANW (%) (Annua lise d) 3.4 6.8

Book Va lue (Rs.) 433.8 423.5

Tota l De bt Equity (x ) 1.1:1 0.7:1

Long Te rm De bt Equity (x ) 0.6:1 0.5:1

Ma rke t Ca pita lisa tion (Rs. Cr.) 4,220 13,253

Particulars

Rs. Cr.

Particulars

2008-09 2007-08

Net Turnover 4,786.2 3,953.1

PBDIT 585.7 633.9

PBDIT Margin (%) 12.2 16.0


PBDT 328.3 454.9

PAT 137.4 243.1

PAT Margin (%) 2.9 6.1

Annua lise d EPS (Rs.) 14.5 26. 1

Annualised CEPS (Rs.) 29.7 43.9

Full Year


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Aditya Birla Nuvo: Management Team

Mr. Pranab Barua

Mr. Arun Maira

Dr. Rakesh Jain, Joint Managing Director

Mr. K. K. Maheshwari, Whole Time Director

Dr. Bharat K Singh, Managing Director

Mr. S. C. Bhargava

Mr. G. P. Gupta

Ms. Tarjani Vakil

Mr. P. Murari

Mr. B. L. Shah

Mr. H. J. Vaidya

Mrs. Rajashree BirlaMr. Kumar Mangalam Birla, Chairman

Mr. B. R. Gupta

Board of Directors

Chief Financial

Officer

Mr. Sushil Agarwal

Financial ServicesMr. Ajay Srinivasan

InsulatorsDr. Bharat K Singh

IT Services

BPO

Fertilisers

Textiles

GarmentsMr. Pranab Barua

Mr. Sanjeev Aga

Dr. Rakesh Jain

Mr. K. K. Maheshwari

Business

Head/Director

Telecom

Carbon Black

Rayon

Business


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Websites

www.birlacarbon.com , www.hitechcarbon.comCarbon Black

www.minacs.adityabirla.comBPO

www.maduragarments.com , www.louisphilippe.com ,www.vanheusenindia.com , www.allensolly.com ,www.peterengland.com

Garments

www.birlaglobal.com, www.apollosindhoori.com,

www.adityabirla-pe.com

Other financial services

www.psidata.comIT Services

www.birlasunlife.comLife Insurance, Asset Management

and Distribution

www.ideacellular.comTelecom

www.adityabirlainsulators.comInsulators

www.jayashree-iril.comTextiles

www.adityabirla.comAditya Birla Group

www.adityabirlanuvo.comAditya Birla Nuvo

Rayon

Business

www.rayone.co.in

Websites


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Aditya Birla Nuvos operations across India

NUVO Corporate officeMumbai o

Rayon Division

o Renukoot

Birla Sun Life Insurance

Hi-Tech Carbon

NUVO-Registered Office

Aditya Birla Minacs

oBangaloreMadura Garments

PSI Data Systems


Jaya Shree Textiles


Aditya Birla Minacs

oHalol

Veraval

o

oRishra

o Gummidipoondi

o Jagdishpur

Indo Gulf Fertilisers

Birla Sun Life Asset Management

o Pune

Idea CellularRegistered office

Garments Contract Exports

Apparel Retail Subsidiaries

Other Financial Services

Idea Cellular Corporate Office Ideas 16 operating circles

Life Insurance : 600 branches

AMC : 115 branches

Distribution : 44 branches

Birla Global Finance : 13 branches

Retail broking : 1080 branches

Madura garments : 340 EBOs

Aditya Birla Minacs

Barodao

o Chennai

Retail Broking

Registered office


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Disclaimer

Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements

including those relating to general business plans and strategy of Aditya Birla Nuvo Limited ("ABNL"), its future outlook and growth

prospects, and future developments in its businesses and its competitive and regulatory environment. 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, itscompetitive 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. 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.

THE 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

Documents

Aditya Birla Nuvo[Nuvo Corporate Presentation May09] 2