Nuvo Corporate Presentation Final

8/13/2019 Nuvo Corporate Presentation Final

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Aditya Birla Nuvo A Snapshot 3 15

Our businesses :

Financial Services 17

Fashion & Lifestyle 26

Telecom 33

IT-ITeS 36

Manufacturing 38

Annexure 46 51

Contents


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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 50% 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 4 th in global top companies for leaders & 1 st in Asia Pacific (Source: Ao n 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

Leadership Aluminium, Cement, Carbon Black, VSF, VFY,Position Branded Apparels, Copper, Chlor-alkali,

Insulators (in terms of production / sales)

Top 3 Telecom (in terms of wireless revenue market share)

Top 5 Life Insurance (in terms of new business premium) Asset Management (in terms of average AUM)

Global positioning

Aluminium Worlds largest aluminium rolling unit

VSF Worlds largestmanufacturer

Carbon Black Worlds largest in terms of capacity

Cement 9 th largest manufacturer in the world

Our Values Integrity, Commitment, Passion, Seamlessness, Speed


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Aditya Birla Nuvo : Vision Mission

Kumar Mangalam BirlaChairman

VisionTo 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

Delivering best value to all the stakeholders To be a responsible corporate citizen


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Savings led Consumption led Infrastructure &Agriculture led Outsourcing led

Growth Drivers

High rate of savings Rising income levels High rate ofcapital formation Rising outsourcing trend

Lower penetration offinancial services A large young population

Steady economicreform regime

Highly skilledhuman capital

Growing awarenessfor financial planning Burgeoning middle class

Investor friendly policiesIncreasing FII & FDI flow Low cost destination

Key sectors tobenefit Financial Services

Telecom, Fashion &Lifestyle, Textiles,

Automobiles,

Power, Roads,Agriculture IT-ITeS

ABNL : Well positioned to tap growth opportunities

Aditya Birla Nuvo :

A large eco-system

1995 2013

Revenue 0.2 4.75

Businesses 5De-risking through portfolio of 15

businesses representing varied sectorsof Indian Economy

Brands ~ 6 ~30

Customers < 1 million Touching lives of 125 million Indians

Employees ~ 13,500 Anchored by strong management teams& more than 65,000 employees


6/52Invested ~ USD 1.5 billion over these years to support growth

Aditya Birla Nuvo : Transformation from a Mfg. company ..

2000: Foray in Fashion & Lifestyle biz. through acquisition of international brands

2006 : Became largest shareholder in Idea

2005 : Merger of Agri and other Financial Services in ABNL

2001 : Foray in Life Insurance biz. through JV with Sun Life Canada

2013 : Acquisition of Pantaloons


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to a USD 4 75 billion conglomerate

Manufacturing

Rayon *

Agri*

IT-ITeS ^(99.85%)

Fashion &Lifestyle

FinancialServices

Telecom $ #(25.27%)

Asset Management ^(51%) @

Life Insurance ^(74%) @

NBFC ^Private Equity ^Broking (75%) ^

Wealth management ^General Insurance Advisory (50%) ^

Insulators *

Note 1 : Having received the shareholders approval, ABNL is in the process of divesting the Carbon Black business.

Represent Joint VenturesRepresent Subsidiaries @ JV with Sun Life Financial, CanadaRepresent Divisions # Listed, Aditya Birla Group holds 45.88%* ^ $

Leadership position in India

Leader Top 3 Top 5

Carbon Black *

(Refer Note 1)

Pantaloons ^

Madura*

Textiles *

Note 2 : Percentage figures indicated above represent ABNLs shareholding in its subsidiaries /JVs


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Sector Market Position Brand

Financial Services Among top 5 fund managers (excl. Banks and LIC)

Fashion & LifestyleLargest premium branded apparel player

Largest linen manufacturer

Telecom Among top 3 cellular operators by revenuemarket share

Agri BusinessRayon

Insulators

2nd best energy efficient urea plant2nd largest manufacturer

Largest manufacturer

IT-ITeS Ranks 6 th Indian BPO company by revenue

Leadership position across businesses in India


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Strongly placed in its businesses

Size : Large sizeable player across the businesses

Competitive edge : Well positioned vis--vis competition

Operating Performance : Marching on profitable growth

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


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Financial snapshot : Consolidated

Earnings growing at robust CAGR

All the businesses are contributing to theprofitable growth

With Idea and Birla Sun Life insurance declaringdividend, ABNL has started generating return onits long term investments

Net Profit ( ` Cr.)

151

(436)

155

822 8901,059

FY08 FY09 FY10 FY11 FY12 FY13

Revenue ( ` Cr.)

11,37514,331 15,523

18,18821,840

25,490


1,153867

1,686

2,6853,259

4,142


EBITDA ( ` Cr.)


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Consolidated Mix FY13

FinancialServices

27%

Telecom24%

Fashion &Lifestyle

21%

IT-ITeS10%

Manufacturing18%

FinancialServices

32%

Telecom29%

Fashion &Lifestyle

14%

IT-ITeS

8%

Manufacturing17%

RevenueEBIT

Note : Revenue and EBIT Mix is without Carbon Black business. Having received shareholders approval, ABNL is in the processof divesting the Carbon Black business


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1

Achieved revenue growth across the businesses

Note 1 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately co nsolidated @ 50% in ABNLs financials, being a 50:50 Joint Venture till 9th Oct12.Thereafter it is consolidated as subsidiary since ABFS holds 51% w.e.f . 10th Oct12.

Note 2 : Full financial numbers of Idea Cellular. Being a JV, Idea Cellular has been consolidated at 31.78% from 10 th March 2007 upto 12 th August 2008, at 27.02% upto 1 st March 2010 andat ~ 25.3% thereafter as per AS 27 .

Note 3 : Represents Branded apparels & Accessories (Madura & Pantaloons) and Textiles. In FY13, nine months financials for Pantaloons are included pursuant to its acquisition w.e.f. appointed date 1 st July 2012Note 4 : Represents Agri , Rayon and Insulators. Having received shareholders approval, ABNL is in the process of divesting the Carbon Black business

Revenue

3500

4778

5871 6313 6550 6390



1622 1688 18262576

3281

4930



1677 17771530

1692

2082

2466


IT-ITeS

16622212 1988

2327

3255

4155


Manufacturing 4

( ` Crore)

672010131

1239815438

1948922407


Telecom 2


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1

Augmented profitability across the businesses

-351-586

-231

544 661819



107-104

66

235339

466



454

105

193 189

251


IT-ITeS

363

474426 420 406

446


Manufacturing 4

EBITDA ( ` Crore)

23763051

3621 3903

51356091


Telecom 2

Note 1 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately co nsolidated @ 50% in ABNLs financials, being a 50:50 Joint Venture till 9th Oct12.Thereafter it is consolidated as subsidiary since ABFS holds 51% w.e.f . 10th Oct12.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 10 th March 2007 upto 12 th August 2008, at 27.02% upto 1 st March 2010 andat ~ 25.3% thereafter as per AS 27 .

Note 3 : Represents Branded apparels & Accessories (Madura & Pantaloons) and Textiles. . In FY13, nine months financials for Pantaloons are included pursuant to its acquisition w.e.f. appointed date 1 st July 2012Note 4 : Represents Agri , Rayon and Insulators. Having received shareholders approval, ABNL is in the process of divesting the Carbon Black business


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1

Growth supported by strong Standalone Balance SheetStandalone Capital Employed

(` Cr.)

Strong balance sheet with Net Debt to EBITDA @ 3.3x and Net Debt to Equity @ 0.53x

Despite more than 50% of standalone capital employed being deployed in long term investments

Going forward, the Companys balance sheet will be further strengthened & growth plans will be supported by :

Proceeds from divestment of Carbon Black business

Balance equity infusion of ` 671 Cr. by promoters on conversion of remaining 9.82 million warrants

Realisation of subsidy & receivables in Agri business which rose to ~ ` 1,625 Cr. in Mar13 (PY : ` 700 Cr.). Thisincludes ~` 500 Cr. w.r.t. trading of imported P&K fertilisers. Subsidy of ` 376 Cr. was received after 31 st Mar13Distribution of dividend / surplus funds by Idea and Birla Sun Life Insurance

1,4153,478

3,910 4,9825,436 5,424

5,5985,857

2,524

2,652

3,0583,767 3,044

3,4374,696

5,157

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Long TermInvestments

Fixed Assets &

Working Capital

2.83.9 3.8

5.8

4.13.3 3.6 3.3

0.58

0.78

0.62

0.87 0.74

0.580.66

0.53


Net Debt / EBITDA Net Debt / Equity

Standalone Ratios


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1

Anchored by a strong Management Team

Business Head/Director Business

Dr. Rakesh Jain Sector Head - Agri,Insulators, Chemicals

IT-ITeSMr. Ajay Srinivasan Financial Services

Mr. Pranab Barua Fashion & Lifestyle

Mr. Thomas Varghese Textiles

Mr. Lalit Naik VFY , Chemicals, Agri,

Insulators

Mr. Himanshu Kapania Telecom

Whole Time Director & Chief Financial Officer

Mr. Sushil Agarwal

Board of Directors

The Company has a balanced Board, comprising of 3Executive, 3 Non-Executive and 6 IndependentDirectors.

Each business is run as an independent SBU under theleadership of a business head

Chief Financial Officer heads the finance function whichis the life blood for a business

Business heads and the Chief Financial Officer havewide-ranging experience in the areas of business

development, strategy formulation, restructuring,

acquisitions, technology management etc.

Some of the senior management team members, priorto joining Aditya Birla Group, have also played key rolesin the globally renowned organisations viz., GE,

Prudential Corporation Asia, Hindustan Unilever, Reckitt

Benckiser etc.

Independent directors have rich experience in theirrespective fields and incl. ex-secretary to the Presidentof India and former top executives from the esteemedorganisations viz., Exim Bank, LIC, IDBI, UTI etc.


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1


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1

Aditya Birla Financial Services

Adi Bi l Fi i l S i (ABFS)


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1

Ranks among top 5 fund managers in India (excl. LIC)

Funds under management @ ~USD 20 billion

Revenue of ~USD 1.2 billion

Anchored by ~14,750 employees & trusted by ~5 mn customers

Nation wide presence through ~1,550 branches / touch points and

~160,000 agents / channel partners

Strong growth in profitability

Generated return on average capital employed of 31% in FY13

Aditya Birla Financial Services (ABFS)

Note 1 : Includes AUM of Life Insurance, Private Equity and quarterly AAUM of Asset Management business

Note 2 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately co nsolidated @ 50% in ABNLs financials, being a 50:50 Joint Venture till 9thOct12. Thereafter it is consolidated as subsidiary since ABFS holds 51%w.e.f . 10th Oct12.Interest cost of NBFC biz., being operating expense as per AS17, is deducted from segmental EBITDA.

-351-586

-231

544661

819


2 EBITDA

3500

4778

58716313 6550 6390


2 Revenue

51445 57825

8347288309 88393

107560

Mar '08 Mar '09 Mar'10 Mar'11 Mar'12 Mar'13

1 Funds under Management

Adi Bi l Fi i l S i (ABFS)


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1


Gained market share across the businesses

Strong growth in lending book and assets under management

Business Parameter FY12 FY13

Life Insurance Private sectors newbusiness premium 7.8% 8.0% Asset Management Domestic avg. AUM 9.2% 9.4%

Non-life Insurance Advisory Non-life industry premium ~0.5% ~0.9%

Broking Retail cash equity broking 1.16% 1.50%

Business Parameter FY12 FY13

Life Insurance AUM (Y-o-Y growth%) 21,110 22,929 (+9%)

NBFC Book Size (Y-o-Y growth%) 3,425 8,000 (+135%)

Asset Management Avg. AUM - Q4 (Y-o-Y growth%) 66,082 83,451 (+26%)

Wealth Management Avg. assets under advisory 14,000 16,500 (+18%)

Non-life Insurance Advisory Premium placed (Y-o-Y growth%) 304 634 (+108%)

( ` Crore) ( ` Crore / y-o-y growth)

Adit Bi l Fi i l S i (ABFS)


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2

Sound fund performance in Asset Management

and Life Insurance businesses

Capital Infusion to support growth in NBFCLending book grew @ 100% CAGR in past 3

years to reach ` 8,000 Cr. in Mar13 A sum of ` 650 Cr. was invested during this period

years to support growth

Returning surplus funds to the shareholders by

Birla Sun Life Insurance (BSLI)

Birla Sun Life Insurance turned profitable in FY11

Distributed interim dividend of ` 98 Cr. in FY12

and ` 197 Cr. in FY13

Plan for 2013-14 : ~ ` 400 Cr.

This will support ABNLs capital commitmentstowards the Financial Services business


2012-13 2011-12

Revenue

Birla Sun Life Insurance 5,037 5,691

Birla Sun Life Asset Management 405 315

Aditya Birla Finance 713 348

Aditya Birla Money 84 88

Aditya Birla Money Mart 76 60 Aditya Birla Insurance Brokers 57 32

Aditya Birla Capital Advisors (PE) 24 21

Elimination (6) (5)

Revenue 6,390 6,550

Earnings before tax 761 600

Net Profit 672 539

` Crore

Note : Including full figures of Asset Management business. As per AS27, AssetManagement business has been proportionately consolidated @ 50% in ABNLsfinancials, being a 50:50 Joint Venture till 9 th Oct12. Thereafter, it is consolidated assubsidiary since ABFS holds 51% w.e.f. 10 th Oct12.

Bi l S Lif I


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2

Birla Sun Life Insurance (BSLI)

Growth in Total Premium Income Growth in AUM ( ` Crore)

BSLI ranks 5 th among private players with a market share of 8% in FY13.

Balanced sales mix : During FY13, non ULIP contributed to 56% (PY: 46%) of individual new business.

Strong distribution reach : A nation-wide presence with more than 600 branches, over 100,000 direct selling agents, 5

bancassurance partners and about 200 corporate agents & brokers

As on 31 st Mar13, 13th month premium persistency is at ~81.3% & 25 th month premium persistency at ~76.6%

Embedded Value at ` 4,015 Cr. & VNB margin at 22.8% in FY12

Going Forward : Augmenting product offerings and strengthening sales relationships to gain market share besides

focusing on persistency and expense management

( ` Crore)

1,307 1,7512,546

3,597 3959 33801,965

2,8212,960

2,080 1926 1837

FY 08 FY 09 FY 10 FY 11 FY12 FY13

3,272

4,5725,506

52%

New Business

Premium

RenewalPremium

5,677 5,885

5,216

19,760

Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13

6,8939,168

16,130

40% 35%

47%

Debt

Equity46%

21,110

45%

22,929

41%

Birla Sun Life Asset Management ( SA C)


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2

Birla Sun Life Asset Management (BSAMC)

Growth in AUM ( ` Crore)

17 years + journey of continued wealth creation

Ranked 4 th in India with market share of 9.4% in Q4FY13

Registered 2nd highest y-o-y growth rate among top 5 players

Building alternate assets : Maiden Real Estate Onshore Fund of ` 1,060 Cr.

Offshore AUM grew to ~USD 850 million

Expanding International Presence : Set up offices in Dubai & Singapore

Posted revenue at ` 405 Cr. & Net profit at ` 73 Cr. in FY13

Going forward : Growing profitable assets with a thrust on improving distribution efficiency and fund performance

1Equity AUM (Domestic & Offshore) + PMS + Real Estate Onshore Fund

28,38142,489

52,902 52,383 50,54366,284

16,1716,168

13559 15,285 15,539

17,167

Mar'08 Mar'09 Q4FY10 Q4FY11 Q4FY12 Q4FY13

44,552

66,461

48,657

Equity & Alternate Assets 1

Debt & Liquid

67,668 66,082

83,451

Financials


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2

Financials

Birla Sun Life Asset Management

` Crore 2012-13 2011-12

New Business Premium

Individual Business 1,048 1,250

Group Business 788 676

New Business Premium (Gross) 1,837 1,926

Renewal Premium (Gross) 3,380 3,959

Premium Income (Gross) 5,216 5,885 Less : Reinsurance ceded & Service tax (313) (261)

Premium Income (Net) 4,903 5,624

Other Operating Income 134 67

Revenue 5,037 5,691


Net Profit 542 461

Capital 2,450 2,450

Assets under management 22,929 21,110

Q4FY13 Q4FY12

Equity 10,860 10,631

Debt & Liquid 66,284 50,543

Domestic AUM 77,144 61,174

Off shore 4,600 3,368 PMS 643 461

Real Estate Fund 1,063 1,078

Total AUM 83,451 66,082

2012-13 2011-12

Revenue (Fee Income) 405 315


Net Profit 73 59

Average AUM ` Crore

` Crore

Birla Sun Life Insurance Birla Sun Life Asset Management

Aditya Birla Finance (NBFC)


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2

Aditya Birla Finance (NBFC)

Closing book size as on 31 st Mar13 more than doubled y-o-y to reach ~ ` 8 ,000 Cr.

All the segments are contributing to the growth

Posted revenue at ` 713 Cr. & Net profit at ` 100 Cr. in FY13

Net worth as on 31 st Mar13 is ` 1,079 Cr. (PY : ` 628 Cr.)

Share Capital of ` 350 Cr. was infused in FY13 to support growth.

The business is growing at a good pace and will require further

capital for future growth

Scaling up the book size while keeping risk under control

600 9001,850

3,425

8,000

Mar'09 Mar'10 Mar'11 Mar'12 Mar'13

NBFC : Book Size( ` Crore)

Crore Mar'13 Mar'12

Capital Market 2,750 1,625

Corporate Finance 1,650 850

Infra Financing 2,100 650

Loan against property/ LeaseRental Discounting

1,400 65

Broad break-up of NBFC book

` Crore 2012-13 2011-12

Revenue 713 348


Net Profit 100 56

Other Financial Services


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2

Other Financial Services

Aditya Birla Private Equity : Of ` 1,179 Cr. corpus, ABPE has deployed / committed ~58% of the deployable surplusABPE Fund I (Size : ` 881 Cr.) has invested in Anupam Industries, Bombay Stock Exchange, Credit Analysis &Research Ltd., GEI Industrial systems, Alphion India Pvt. Ltd., Trimax IT Infrastructure & Services and Ratnakar Bank

Sunrise Fund (Size : ` 299 Cr.) : Investment made in SMS Paryavaran Ltd., Olive Bar and Kitchen Ltd. and TreeHouse Education & Accessories Ltd.

Aditya Birla Money : is a retail broking company with nationwide network of more than 800 touch points (includingfranchisees) serving over 300,000 customers across more than 150 cities

Aditya Birla Money Mart : Among the leading corporate mutual fund distributors in India having Assets under Advisoryof more than ` 135 billion (Q4FY13) and a nationwide presence with 24 branches and ~16,000 channel partners

Aditya Birla Insurance Brokers : A leading non-life insurance broking company in India. The premium placementmore than doubled year on year to ` 634 Crore

2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-

Revenue 24 21 84 88 76 60 57 32

Earnings before tax 9 6 (15) (19) (2) (21) 16 9

Net Profit / (Loss) 6 4 (15) (18) (2) (21) 11 6

` Crore

Aditya Birla CapitalAdvisors (Private Equity)

Aditya Birla Money Mart(Wealth Management)

Aditya Birla InsuranceBrokers (General

Insurance Advisory)

Aditya Birla Money(Broking)


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2

Fashion & Lifestyle

Fashion Lifestyle


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2

The largest branded apparel player in India selling one apparel every

second

Largest manufacturer of linen fabric in India

Nationwide reach through a large controlled retail presence of 1,443

stores spanning across 3.7 million sq. ft.

Besides, reaching customers through more than 4,750 MBOs &

Department Stores.

Combined revenue (annualised) 1 of ~USD 1 billion

Generated return on operating capital employed @ 25%

Fashion Lifestyle

Business EBOs /Stores

RetailSpace

(million sq. ft.)

Madura 1,272 1.9Pantaloons (incl.Factory Outlets) 95 1.7

Jayashree Textiles(Linen Club) 76 0.1

1,443 3.7

1FY13 includes nine months financials of Pantaloons Fashion business acquired w.e.f. the appointed date 1 st July 2012

Madura51%

Pantaloons26%

Jayashree23%

Revenue mix 1 (FY13)

(For 9 monthsJul12-Mar13)

1622 1688 18262576

3281

4930


Revenue 1

107-104

66

235339

466


EBITDA1

2

2FY13 EBITDA excludes interest income of ` 62 Cr. on current investments to make performance comparable

Madura Fashion Lifestyle


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2

1,026 1,116 1,251

1,8112,239 2,523


Madura Fashion LifestyleRevenue ( ` Cr.)

39

(158)

(4)

136196

245


EBITDA ( ` Cr.)

Madura Fashion & Lifestyle is the largest branded apparel player in India

Strong Brands : Louis Philippe, Van Heusen, Allen Solly, Peter England,Collective, Plant Fashion, People

Louis Philippe & Van Heusen are the best selling brands in IndiaEBITDA margin of brands enhanced to 11.5% (PY:10.2%)

Revenue doubled in past 3 years to cross ` 2,500 Cr. mark growing @ CAGR

of 26% while capital employed is managed at similar levels leading toROACE expansion from 11% in FY11 to 29% in FY13

Expanding retail channel to strengthen market leadership

Besides these EBOs, Madura is reaching customers through more than 1,750MBOs & Department Stores

Retail Channel

698895

1,1291,272

Mar'10 Mar'11 Mar'12 Mar'13

1.0 1.31.6 1.9

Retail Space(Million Sq Ft)

No. of EBOs



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2


46%37%

17%

Channel-wise revenue Mix

Clearance Sale

& Exports

Retail (EBOs incl.Planet Fashion)MBOs &

Department Stores

(PY : 38%)

(PY : 44%)

(PY : 18%)

2012-13 2011-12

Revenue (excluding Esprit) 2,483 2,167

Esprit Revenue 40 73

Total Revenue 2,523 2,239

EBITDA (excluding Esprit) 269 204

Esprit EBITDA (24) (7)

Total EBITDA 245 196

Segment EBIT 157 123

Capital Employed 479 615

ROACE (Annualised) (%) 29 20

` CroreFull Year

Launched online shopping portal : One-stop shopping destination for Madura brands.

Going Forward : Leveraging brand leadership, expanding retail space & strengthening channel relationships

Note : Madura exited distribution tie up with Esprit and closed all Esprit stores in FY13

Pantaloons Fashion & Retail Ltd.


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3

Status

ABNL, through its subsidiary Peter England Fashions & Retail Ltd. (PEFRL) invested ` 800 Cr. throughOptionally 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 filed with the Honble Bombay High Court

The shareholders of PRIL approved the scheme in their meeting held on 6 th Dec12

The Competition Commission of India approved the transaction vide its order dated 21 st Dec12

PRIL, through court scheme of arrangement, transferred all undertakings, business activities andoperations pertaining to the Pantaloons Fashion alongwith debt of ` 1,600 Cr. to PEFRL. PRILredeemed ` 800 Cr. OFCDs and redemption proceeds utilised by PEFRL to reduce debt. The AppointedDate of the transfer is 1 st July 2012. Scheme made effective on 8 th Apr13.

PEFRL rechristened as Pantaloons Fashion & Retail Limited (PFRL). PFRL issued equity shares to shareholders of PRIL as per share entitlement ratio. Shareholding of ABNL,

through its wholly owned subsidiary Indigold Trade & Services Ltd. (ITSL), in PFRL, became 50.09%

A voluntary open offer was made by ITSL to the public shareholders of PFRL up to 24.91% of the postdemerger paid up equity share capital of PFRL at a predetermined price of Rs 175 per share.

On receipt of requisite approvals, the equity shares of PFRL will be listed on the National Stock Exchangeof India and The Stock Exchange, Bombay Jun13

Pantaloons Fashion Retail Ltd.


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3

Pantaloons : Posted revenue 1 at ` 1,285 Cr. & EBITDA^ at ` 67 Cr . (incl. 9 months financials of the acquired Pantaloons business)

Gross margin was sustained, however, moderated sales growth and higher sellex impacted EBITDA

One time costs on account of change in accounting policy also lowered profitability

Customer reach stands expanded to 69 Pantaloons stores & 26 Factory Outlets across 1.7 million sq. ft.

Added 6 Pantaloons stores & 3 Factory Outlets during 9 months

Menswear 35%

Womenswear 38%

Kidswear 9%

Non-apparel18%

Revenue Mix2012-13(Including nine

months financialsof Pantaloons)

Revenue 1,285

EBITDA^ 67

Finance Cost^ 82

Depreciation 54

Net Profit / (Loss) (69)

^ Net of interest income of ` 62 Cr. on c urrent investments

` Crore

1

1FY13 includes nine months financials of Pantaloons Fashion business acquired w.e.f. the appointed date 1 st July 2012

` CroreAs on

31st Mar'13

Net Fixed Assets 488

Goodwill 1,168

Net Working Capital 44

Capital Employed 1,700

Net Worth 770

Net Debt# 931

# Net of current investments of ` 800 Cr.

Jaya Shree Textiles


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3

Jaya Shree Textiles (JST) is the domestic market leader in Linen segment

Branding & promoting linen fabric under Linen Club

Focus on high margin linen fabric OTC segment

Contributes to 50% of total linen fabric sales

One of the largest player in Wool segment in India

Revenue crossed ` 1,000 Cr. mark

ROACE improved considerably: Earnings doubled in past 3 years while capital employed is managed at a lower level.

To capitalise on buoyant demand in the linen segment, JST is expanding 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. in Q2FY14

y

600573 577

774

1,0461,144


Revenue ` Cr.)

68 54 6999

141154

11.3%9.5%

12.0% 12.8%13.4%

13.5%


EBITDA ` Cr.) OPM(%)

359 345281

198

88

179

15% 9%15% 32%

82%

97%


Capital Employed ` Cr.) ROACE (%)


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3

Telecom

Idea Cellular (Telecom)


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3

672010131

1239815438

1948922407


Revenue ( ` Cr.)

Having a market cap of ~USD 8 billion, Idea is the biggest revenue market share gainer in India since past four years

Ranks 3 rd in terms of pan India revenue market share 1 at 14.8% up from 14.4% a year ago.Contributed to 20.5% of industrys incremental mobilerevenue 1 in 9mFY13

Ranks among top 10 players globally with total Minutes of voice usage of about 1.6 billion per day

Base of 121.6 mn subscribers provides a platform for upgrading pure voice customers to wireless data services in future

Winner of 3G spectrum in 11 service areas which contribute more than 75% of Ideas existing2G revenue

Idea holds 16% stake in the worlds largest Indus Towers

Strong balance sheet & cash profit to support growth :Standalone Net Debt/EBITDA 2.16 & Net Debt/Equity 0.82

Idea was free cash flow positive (after capex but before spectrum payout) in FY13.

Generated cash profit of ` 4,697 Cr. in FY13 attaining 30% y-o-y growth

Maiden dividend proposed @ 3% of share capital : Overall payout of ` 116 Cr. (incl. dividend distribution tax)

11.7%12.6%

13.6%14.4% 14.8%

Q4FY09 Q4FY10 Q4FY11 Q3 FY12 Q3 FY13

Revenue Market Share 1

23763051

3621 3903

51356091


EBITDA ( ` Cr.)

1Based on gross revenue for UAS & Mobile licenses only, as released by TRAI

Idea Cellular (Telecom)


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Currently, 26.2 million subscribers use mobile data services, contributing 6.6% of total service revenue in Q4FY13

As on 28 th Feb13, Idea has around 98.4% of reported subscribers as active subscribers, highest in the industry.Going forward: Capitalising on brand !DEA, consolidating position in voice market & expanding in evolving wireless

broadband business

10.4 8.8 9.5 9.0 7.210.1


Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13

35

133 114123 131

14365

8979 121

133 140

Net Wort

Total Deb

Strong Balance Sheet (Figures in ` billion)

4,76310,114 24,793

49,86066,187 73,668

96,015 107,234

Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13

Subscribers (In Million)

Cell Sites: Capacity grew multifold

Robust growth in MOUs (billion minutes)

21 46 86 165 243 363453 532


7.4 14.0 24.043.0 63.8

89.5112.7 121.6

Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar '12 Mar '13

Net Profit ( ` billion)


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IT-ITeS

Aditya Birla Minacs (IT-ITeS)


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Ranked 6 th 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 20,500 (North America : ~8,000, APAC : 12,500) as on 31 st Mar13

Revenue reaches near to ` 2,500 Cr. mark in FY13 and EBITDA margin improved y-o-y from 9.1% to 10.2%

On constant currency 2 basis, revenue grew y-o-y by 8% & EBITDA by 13% during FY13

Net profit surged by 80% from ` 70 Cr. to ` 125 Cr. in FY13

Generating steady cash profits to fund its capex and working capital requirementsNet Debt as on 31 st Mar13 at ` 977 Cr. stands reduced y-o-y by ` 129 Cr.

ROACE of 11.5% at capital employed of ` 1,449 Cr. (PY : ` 1,399 Cr.)

Going Forward : Enhancing profitability with focus on operational efficiencies to improve margins.

1677 17771530

1692

2082

2466


Revenue ( ` Cr.)

454

105

193 189

251


1

EBITDA ( ` Cr.)

1Received employment incentive arrears of ` 25 Cr. in 2010-11

US77%

Canada14%

Asia

Pacific6%

Europe3%

Revenue Mix by Customer Location

2Normalising for CAD/INR translation impact due to forex movement


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Manufacturing

Manufacturing Businesses


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Revenue

FY12 FY13Business

EBITDA

FY12 FY13Remarks on profitability

2,107 2,924 Agri 211 197Lower urea sales volume and higher energy costs due toplanned maintenance shutdown

680 777 Rayon 128 189 Higher VFY & ECU realisation and growth in volumes

468 454 Insulators 67 61 Sales volume & margins were impacted due to cheaper imports

3,255 4,155 Total 406 446 Revenue grew by 28% and EBITDA by 10%

1,943 2,036 Carbon Black 2 204 132 Constrain on sales volume & margins due to cheaper importsand lower off-take from tyre manufacturers

5,198 6,191 611 579

Revenue 1 grew by 28% to ` 4,155 Cr. in FY13

EBITDA1 is up by 10% to ` 446 Cr.

Operating at an ROACE1

of 15.4%

2Having received shareholders approval, ABNL is in the process of divesting the Carbon Black business, w.e.f. 1st April 2013

1 Agri, Rayon and Insulators

Indo Gulf Fertilisers (Agri-business)


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

Indo Gulf Fertilisers has 10-20% market share in the target markets

of Uttar Pradesh, Bihar, Jharkhand and West Bengal

Strong brand BirlaShaman is preferred choice of farmers Also offering value adding variety Neem coated Krishi Dev

A complete agri-solutions provider Fertilisers, Seeds, Pesticides

Capital employed has increased primarily due to higher outstanding subsidy on account of slower recovery, rise in natural

gas prices and increase in trading sales of imported P&K fertilisers. Received ` 376 Cr. since 31 st Mar13

The Board of Directors has approved proposal for urea brownfield expansion by 3,850 TPD (~1.3 million TPA)

Proposed capacity, subject to government approvals, will more than double the existing capacity

102

228

155 176211 197

13%

18%

15% 14%

10%7%



531 587307

496

984

1,854

18%

38%31%

39%

26% 12%



7871,250

1,0221,244

2,107

2,924

870 1073 1106 1099

1152

1091


Revenue ` Cr.) Sales ('000 MT)

Urea Brownfield Expansion proposal


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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 requisiteGovernment 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

BirlaShaktiman 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

Project completion period : About 3 years

Project Capex : ~ ` 4,000 Cr.

Indian Rayon (VFY and Chemicals)


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2nd largest producer of VFY in India with ~38% domestic production share

Largest Indian VFY exporter for consecutive 8 th year

with ~48% share in VFY exports from India in FY13

Integrated facilities : Cost effective 34.5 MW captive power plant

VFY has a niche market globally

Premium is driven by quality and value added yarns

Expanded its presence in fine & superfine VFY segment using Spool Technology from Germany at a capex of ~ ` 270 Cr.

in Mar13. New VFY plant has been commissioned and is currently under ramp up. New capacity will enhance theproduct range and will cater to the premium segments.

Increase in capital employed in FY13 is primarily on account of VFY capacity expansion. ROACE improved to 26%

454437

430

440515

681

20% 20%

28%

17% 19%

26%



476 537 538565

680 777

17923 16792 16616 15592 16183 16806


Revenue ` Cr.) VFY Sales Volume (MT)

124 123 155 110 128

189

26%23%

29%

19%19% 24%



Aditya Birla Insulators


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Used in power generation, Transmission & distribution (T&D) and by Original Equipment Manufactures (OEMs)

Aditya Birla Insulators is largest domestic producer & 4 th largest globally with a capacity of 45,260 TPA at two plants

Power Grid corporation of India & State Electricity Boards , ABB, Areva, Siemens etc. are amongst major customers

Insulators industrys domestic sales volume de-grew y-o- y by 15% during Apr12-Feb13(Source : IEEMA)

Deferment of projects coupled with cheaper imports from China impacted sales and margins across the industry

Liquidity crunch in the power sector is also restricting dispatches

Aditya Birla Insulators contained de-growth in its volumes to 8% during the year

Finance Ministry has imposed safeguard duty of 35% on insulators imports from China from 20 th Dec12 to 19th Dec13and then 25% till 31stDec13.

136 123 116 134

67 61

34%29% 27% 26%

14% 13%



240 264294

362 375 395

58% 43% 35% 34% 12% 10%


Capital Employed ` Cr.) ROACE (%

399 425 428518 468 454

32304 32561 37050

4428139024 35889


Revenue ` Cr.) Sales Volumes (MT)

Hi-Tech Carbon


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Having received shareholders approval, ABNL is in the process of divesting Carbon Black business, w.e.f. 1st April 2013

Aditya Birla Group is largest player globally (Capacity : 2 million MTPA)

Operating in 12 countries through 17 plants globally

Indian operations are through ABNL which accounts for 2% of global industry capacity

Carbon Black imports in India increased y-o-y by ~50% in FY12 & 19% in FY13. Cheaper imports & lower offtake from

tyre manufacturers impacted capacity utilisation of domestic players and constrained sales volume & cost pass through

Finance Ministry imposed safeguard duty of 30% on carbon black imports from China from 5 th Oct12 to 4th Oct13 and

then 25% till 31stDec13. The duty will apply on carbon black used in rubber applications (incl.tyres).

Despite imposition of safeguard duty on imports from China total imports remained at high level

Export volumes were also impacted due to cheaper exports from China 25%

8641,096 1,161

1,5881,943

2,036215 204 230

275 270 252


Revenue ` Cr.) Sales ('000 MT)

15350

253

257 204132

18%

5%

22% 16%11%

7%



668 753942

1,235 1,365 1,24923%

3%

27%

20%

13%7%



Divestment of Carbon Black business


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The Committee of Directors of ABNL, at its meeting held on 6 th April 2013 decided, subject to the approval of

Shareholders and other requisite approvals, to divest the Carbon Black Business, on a going concern basis, by way of

slump sale to SKI Carbon Black (India) Private Limited, an Aditya Birla Group Company, for a lump sum consideration

of ` 1,451 Cr. as enterprise value, subject to adjustment for net working capital.This is on the basis of an independent valuation carried out by M/s Deloitte Touche Tohmatsu India Pvt. Ltd.

The appointed date is 1 st April 2013.

Given that multi-national tyre manufacturers prefer to deal with carbon black players having global delivery capabilities,

the scale & global positioning in the Carbon Black sector has become increasingly important.

ABNLs Carbon Black business contributes to merely 2% of the global industry capacity.

Moreover, in view of ABNLs capital commitments towards funding the growth of its other businesses, it is challenginfor ABNL to become a global player.

The cash inflow from the divestment of Carbon Black business will reduce the debt and strengthen the ABNLs balancsheet. This will support ABNLs growth plans and ensure greater focus in the other businesses.

Having received the shareholders approval, ABNL is in the process of divesting the Carbon Black business.


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Segmental Revenue EBIT - Consolidated ( ` Crore)


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Consolidated

2012-13 2011-12 2012-13 2011-12

6,295 6,392 Aditya Birla Financial Services 706 541

5,037 5,691 Life Insurance 542 461

1,258 702 Other Financial Services* 165 80

5,662 4,933 Telecom (Nuvo's share) @ 639 534

4930 3281 Apparels & Textiles 299 242

3,802 2,243 Branded Apparels & Accessories 170 125

1,144 1,046 Textiles 129 117

(16) (8) Inter-segment Elimination - -

2,466 2,082 IT-ITeS 164 111

4155 3255 Manufacturing 369 329

2,924 2,107 Agri-business 177 192

777 680 Rayon 153 92

454 468 Insulators 39 46

2,036 1,943 Carbon Black 93 164 (54) (46) Inter- segment Elimination - -

25,490 21,840 Segmental EBIT 2,270 1,921

Revenue EBIT

* Other Financial Services include Asset Management (proportionately consolidated at 50%, being a 50:50 JV till 9 th Oct12 and thereafter consolidated as subsidiary since ABFS holds51% w.e.f. 10 th Oct12), NBFC, Private Equity, Broking, Wealth Management & General Insurance Advisory. Interest cost of NBFC business, being an operating expense as per AS17, is deducted from Segmental EBIT

@ Idea is consolidated at ~25.3%

Profit Loss Account ( ` Crore)


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2012-13 2011-12 2012-13 2011-12

9,754 8,433 Revenue 25,490 21,840

1,116 1,050 EBITDA 4,142 3,259

- - Less : NBFC Interest expenses 456 202

360 313 Less : Other Interest Expenses 865 636

756 737 EBDT 2,821 2,422

219 203 Less : Depreciation 1,295 1,092

537 534 Earnings before Tax (before exceptional items) 1,526 1,330

- (104) Exceptional Gain / (Loss)* - (104)

537 430 Earnings before Tax 1,526 1,226

114 85 Less : Provision for Taxation (Net) 342 216

- - Less : Minority Interest 125 120

423 345 Net Profit 1,059 890

Standalone

Profit & Loss Account

Consolidated

* A provision of ` 104 Cr. was made in Q4FY12 towards entry tax liability (largely related to previous years, ear lier recognized as contingent liability) w.r.t. Renukoot(U.P.) plant of the Carbon Black business; the matter is sub-judice.

ConsolidatedStandalone

Balance Sheet ( ` Crore


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6,854 5,679 Net Worth 9,384 7,517

- - Minority Interest 940 301

4,005 4,457 Debt 11,799 9,224

- - NBFC borrowings 6,903 2,973

155 158 Deferred Tax Liabilities (Net) 428 317

11,014 10,294 Capital Employed 29,455 20,331

- - Policyholders' funds (Incl. fundsfor future appropriation) 21,576 19,964

11,014 10,294 Total Liabilities 51,031 40,295

2,226 1,976 Net Block (Incl. Capital Advances ) 10,710 9,385

- - Goodwill

4,793 3,146

- - NBFC Lending 8,000 3,425

2,577 2,012 Net Working Capital 1,837 1,177

5,857 5,598 Long Term Investments 354 319

- - Life Insuranc e Investments 22,929 21,110

- - Policyholders' Investments 21,559 20,095

- - Shareholders' Investments 1,371 1,015

353 707 Cash Surplus & Current Invest ments 2,409 1,733

570 500 Book Value (`) 781 662

3.3 3.6 Net Debt / EBITDA (x) 2.3 2.3

0.53 0.66 Net Debt / Equity (x) 1.00 1.00

11,727 10,723 Market Capitalisation - NSE

Mar-13

Consolidated

Mar-12Mar-12 Mar-13

Standalone

Balance Sheet

Excluding MTM gain of ` 22 Cr. as on 31 st Mar13 and MTM loss of ` 104 Cr. as on 31 st Mar12w.r.t. fully hedged foreign currency working capital debt

Standalone Capex


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( ` Crore)

Plan To be spent(A) in FY14

Major Projects

Agri 296 53 243 162

Madura (Retail Stores) 144 - 144 113

Textiles 100 31 69 69

Rayon 71 45 27 27

Other Capex 437 107 330 286

1,049 235 814 657

CapexBalance to

be spent(C = A-B)

Spent tillMar'13

(B)

Shareholding Pattern Market Cap


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2,409

6,246

9,992

13,265

4,227

9,336 9,24410,723

11,727

402 748 1071

1396

445 906 814 945 976

Mar'05 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13

Market Cap ` Crores) Closing Share price (`)

Trusted by 146,139 shareholders

Over 91% of shares are in dematerialised form

Face value of ` 10 per share

For analysts coverage on ABNL visit :

Market Cap & Share Price

Source : NSE website

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

http://www.adityabirlanuvo.com/investors/downloads/third_party_analysts_coverage.aspx

Category

No. of No. of Shares Shareholding

Shareholders held (in million) (%)

Promoter & Promoter Group 21 64.62 53.76%

Foreign Institutional Investors 290 18.65 15.51%

Domestic Insti tutional Investors 206 15.29 12.72%

Non-Insti tutional Investors 145,618 18.46 15.36%

GDRs 4 3.18 2.65%

Total 146,139 120.21 100.00%

As on 31st March 2013

DisclaimerCertain statements made in this presentation may not be based on historical information or facts and may be forwardlooking statements including
http://www.adityabirlanuvo.com/investors/downloads/third_party_analysts_coverage.aspxhttp://www.adityabirlanuvo.com/investors/downloads/third_party_analysts_coverage.aspx


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Certain statements made in this presentation may not be based on historical information or facts and may be forwardlooking 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 notremain 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 conductsbusiness. Important factors that could make a difference to ABNLsoperations include global and Indian demand supply conditions, finished goodsprices, feed stock availability and prices, cyclical demand and pricing in ABNLsprincipal 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 aslitigation 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 beconsidered 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 reviseany forward looking statements on the basis of any subsequent developments, information or events or otherwise. Unless otherwise stated in thisdocument, the information contained herein is based on management information and estimates. The information contained herein is subject tochange without notice and past performance is not indicative of future results. ABNL may alter, modify or otherwise change in any manner thecontent of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied anddisseminated in any manner.

INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF ABNLThis presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. Thesematerials are not an offer of securities for sale in or into the United States, Canada or Japan.

Aditya Birla Nuvo LimitedRegd. Office: Indian Rayon Compound, Veraval 362 266 (Gujarat)

Corporate Office: 4th Floor A Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai 400 030Website: www.adityabirlanuvo.com or www.adityabirla.com or Email: [email protected]
http://www.adityabirlanuvo.com/http://www.adityabirla.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.adityabirla.com/http://www.adityabirlanuvo.com/

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Nuvo Corporate Presentation Final