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ADITYA BIRLA NUVO LIMITED A PREMIUM CONGLOMERATE

CORPORATE PRESENTATION

MAY 2016

Aditya Birla Group (ABG) Snapshot 1 Pg 4

Aditya Birla Nuvo (ABNL) : Vision – Mission - Values 2 Pg 5

ABNL Structure 3 Pg 6

Key Highlights 4 Pg 7

ABNL Businesses : 5

Aditya Birla Financial Services 5.1 Pg 17

Telecom 5.2 Pg 27

Divisions 5.3 Pg 29 New Ventures 5.4 Pg 34

Annexure 6 Pg 35

2

3

Technical

Company ABG – Aditya Birla Group

ABNL – Aditya Birla Nuvo Limited

ABCAP – Aditya Birla Financial Services Limited

ABFL – Aditya Birla Finance Limited

ABHFL – Aditya Birla Housing Finance Limited

ABIBL – Aditya Birla Insurance Brokers Limited

ABCAP – Aditya Birla Capital Advisors Pvt Limited

ABML – Aditya Birla Money Limited

ABMM – Aditya Birla Money Mart Limited

ABHIL - Aditya Birla Health Insurance Limited

BSLI – Birla Sun Life Insurance Company Limited

BSLAMC – Birla Sun Life Asset Management Company Limited

Technical

AUA – Assets Under Advisory

AUM – Assets under Management

AAUM – Quarterly average Assets under Management

ARPU – Average Revenue Per User

ARMB – Average Revenue Per Megabyte

APE – Annual Premium Equivalent

CY : Current Year

CAGR – Compounded Annual Growth Rate

EBITDA – Earnings Before Interest, Tax, Depreciation and Amortization

EBIT – Earnings Before Interest and Tax

ECU – Electro Chemical Unit

FCF – Free Cash Flow

FY : Financial Year (April-March)

EBO – Exclusive Brand Outlet

MBO – Multi Brand Outlet

JV – Joint Venture

NBFC – Non Banking Financial Company

NPA – Non-Performing Asset

PQ – Previous Quarter

PY – Corresponding period in Previous Financial Year

Q1 – April-June

Q2 – July-September

Q3 – October-December

Q4– January-March

QoQ – Quarter on Quarter (Previous Quarter)

ROA – Return on Asset

ROACE : Return on Avg. Operating Capital Employed based on EBIT

ROE – Return on Equity

RMS – Revenue Market Share

TPA – Tons per annum

VAS – Value Added Services

VFY – Viscose Filament Yarn

VLR – Visitor Location Register

VSF – Viscose Staple Fibre

YOY – Year on Year ( Corresponding period in previous Financial Year)

YTD – Year to date

Technical

NOTE 1 : The financial results of ABNL are consolidated financial unless otherwise specified NOTE 2 : The financial figures have been rounded off to the nearest ₹ 1 crore NOTE 3 : 1 USD = ₹ 65

GLOSSARY

Global positioning In India

Strong Parentage of Aditya Birla Group (ABG)

A USD 41 billion Indian multinational, Aditya Birla Group is in the league of Fortune 500

Operating in 36 countries across 6 continents deriving

over 50% of revenue from overseas operations Ranked 4th in global top companies for leaders & 1st in Asia Pacific

(Source: Aon Hewitt, Fortune Magazine & RBL - 2011)

Among the largest and the most reputed business houses in India Anchored by 120,000 employees from 42 nationalities.

Trusted by 1.2 Mn shareholders & 180 Mn+ customers

Ranked 1st in Nielsen’s Corporate Image Monitor 2014-15 – Occupying pole position for 3 consecutive years

Flagship listed companies

Aditya Birla Nuvo (ABNL)

(Conglomerate)

Grasim & Ultratech

(VSF & Cement)

Hindalco - Incl. Novelis

(Aluminium & Copper) Idea Cellular (Telecom)

Aditya Birla Fashion & Retail Ltd (ABFRL)

Leadership Aluminium, Cement, Carbon Black, VSF, VFY, Position Branded Apparels,Copper, Chlor-alkali, Insulators (in terms of capacity/production/sales) Top 3 Telecom (in terms of wireless revenue market share) Top 5 Life Insurance (in private sector in terms of APE) Asset Management (in terms of average AUM)

ABNL Vision – Mission

ABNL Structure

Key Highlights

Aditya Birla Financial Services

Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

4

Largest Indian MNC with manufacturing operations in the US Aluminium World’s largest aluminium rolling unit VSF Among the top 2 producers in the world Carbon Black World’s largest in terms of capacity Cement Among the top global players Insulators & acrylic fibre Globally 4th Largest

Kumar Mangalam Birla

Chairman

Vision “To be a premium conglomerate building leadership in businesses and creating value for all the stakeholders”

Mission Investing in 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

Values • Integrity

• Commitment

• Passion

• Seamlessness

• Speed

ADITYA BIRLA NUVO LIMITED (ABNL) : VISION, MISSION & VALUES

5

Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

Telecom

Annexure

ABNL Structure

Telecom

Divisions

New Ventures

Annexure


Divisions

ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot


6


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

New Ventures

ABNL - A USD 3.6 billion Conglomerate

6

SOLAR

Life Insurance$

(51%) Aditya Birla Financial Services Ltd. (100%)^ Telecom$#

(23.26%)

DIVISIONS

NBFC (100%)^

Housing Finance (100%)^

Asset Management (51%)$

General Insurance Advisory (50.01%)^

Private Equity (100%)^

Broking (75%)^#

Wealth Management (100%)^

Health Insurance (100%)^

Jaya Shree*

Agri*

Rayon*

Insulators*

*Represents Divisions ^Represents subsidiaries $Represents Joint ventures #Listed

Note 1 : Percentage figures indicated above represent ABNL’s Shareholding in its subsidiaries/JV’s

Note 2 : Major investments include 9.1% stake in Aditya Birla Fashion & Retail Ltd.

Aditya Birla Health

Insurance Co. Ltd.

(Proposed 51% JV)

Online Money Management (100%)^

Solar Power JV

(51%)$

Payments

Bank $

49% 51%

7

2000 2001 2003 2005 - 06 2005 - 11 2012 2013 2015 2014

Invested USD 2 billion over past 15 years to fund the growth of its businesses leading to transformation from a manufacturing company to a premium conglomerate

ADITYA BIRLA NUVO : PROGRESSING IN LINE WITH ITS VISION

Investing in the Promising Sectors

Forayed in Life Insurance business through JV with Sun Life, Canada

Enhanced strategic stake in Telecom through Idea

Augmented Fashion offerings through acquisition of Pantaloons, a top 3 big box apparel retailer

Expanded Linen Yarn and Fabric Capacities Commenced Housing Finance operations

Entered Fashion business through acquisition of Madura

Entry into IT-ITeS Business

Expanded Financial Services portfolio by merger of Asset management & NBFC business and entry in broking, private equity etc. Created India’s largest

online money management platform “My Universe”

ABNL receives in-principle approval from RBI to set up Payments bank in a 51 : 49 joint venture with Idea Cellular Entered into JV agreement with MMI Holdings Ltd. to foray in health insurance business in India ABNL enters into a 51:49 JV with Abraaj Group to invest in the Solar Power Business in India.

Added New Superfine Yarn capacity in Rayon


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot


BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES

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

Note 2 : Including Housing Finance lending book

Note 3 : Established businesses include Life Insurance, Asset Management, NBFC, Private Equity, Broking, Wealth Management & General Insurance Broking businesses.

Note 4 : 1 USD = ₹ 65 8


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot Augmenting Portfolio

• ABNL has entered into a JV agreement in June 2015 with MMI Holdings Ltd., to enter into health insurance business in India

• Proposed to be a 51:49 Joint venture with MMI Holdings.

• Received an in-principal approval from FIPB

• Final regulatory approval from IRDAI is awaited.

Corporate Action

• Sun Life Financial, Canada raises its stake in Birla Sun Life Insurance (BSLI) from 26% to 49% in April 2016

• ABNL sold 437 million equity shares in BSLI, constituting its 23% stake, and received a sum of ₹ 1,664 Crore in April 2016

• ABNL continues to hold the controlling stake in BSLI at 51%

• ABNL & Sun Life are committed to fund the growth requirements of BSLI, if & when required. Considering current growth plan & with about 2x solvency margin, BSLI is well capitalised

Industry Positioning

Among the top 5 fund managers

in India (excl .LIC)

AUM USD 28.4 billion1

(₹ 184,276 Crore) Mar’16 - 12%↑ y-o-y

Diversified Portfolio

Having 12 lines of businesses

NBFC Lending Book

USD 4.3 billion2

(₹ 27,728 Crore) Mar’16 - 57%↑ y-o-y

Revenue – FY16 (Established businesses3)

USD 1.4 billion (₹ 9,192 Crore)

16%↑ y-o-y

EBT – FY16 (Established businesses3)

USD 171 million (₹ 1,110 Crore)

21%↑ y-o-y


Strong ROACE –FY16 (annualised)

JayaShree 44% p.a.

Agri 11% p.a.

Rayon 30% p.a.

Insulators 22% p.a.

Divisions 21% p.a.

Divisions Telecom (Idea Cellular)

BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES

Note 1 : In terms of subscribers and based on operations in a single country (Source : GSMA, Dec’15)

Note 2 : Based on gross revenue for UAS & Mobile licenses only for Q3 FY16, as released by TRAI Note 3 : Q3FY16 over Q3FY15 9


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot Industry

Positioning 6th largest1 in the world

3rd largest2 in India

Strong Balance Sheet

Net Debt to EBITDA : 3.25x (Standalone)

(as on 31st Mar’16)

Revenue - FY16 USD 5.5 billion

(₹ 35,935 Crore) 14%↑ y-o-y

Outperforming Industry

Revenue share grew y-o-y from 17.5% to 18.9%2

Incremental RMS @ 59%3

Cash profit – FY16 (post tax)

USD 1.6 billion (₹ 10,120 Crore)

19%↑ y-o-y

EBITDA – FY16 USD 2.0 billion

(₹ 13,257 Crore ) 18%↑ y-o-y

Industry Positioning India’s largest Linen, VFY and

Insulators manufacturer

One of the Leading manufacturers of Urea

Free Cash Flow – FY16 (pre-tax)

USD 74 million (` 478 Crore)

52%↑y-o-y

EBITDA – FY16 USD 117 million

(` 764 Crore) 24%↑ y-o-y

Outlook Expanding linen yarn & VFY

capacities to tap sector growth

Long term anti-dumping duty to benefit Insulators sector

Gas pooling policy to benefit urea sector

Revenue - FY16 USD 841 million (` 5,466 Crore)

1%↑ y-o-y

5.8

3.7

3.0

4.5

0.87 0.68 0.42 0.44

Mar'09 Mar'12 Mar'15 Mar'16

Net Debt/annualised EBITDA Net Debt/Equity

Standalone Ratios Standalone Net Debt

306 676 1,193 1,112

3,591

3,854 3,584 3,786

Mar'09 Mar'12 Mar'15 Mar'16

O/s

Fertilisers

Subsidy

A PLATFORM TO DRIVE SYNERGY OF RESOURCES

(₹ Crore)

10


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

Standalone balance sheet has been ABNL’s growth engine & a platform to drive synergy of capital resources

• In FY16, it incurred capex of ` 110 Cr. for divisions and infused capital of ` 967 Cr. in Financial Services business

Proceeds of ` 1,664 Cr. from sale of 23% stake in Birla Sun Life Insurance and Fertilisers subsidy of ` 489 Cr. have been realised in Apr’16

leading to reduction in the debt of ABNL. Adjusting for sale proceeds & subsidy realisation, Net Debt / EBITDA stands at comfortable position

Coupled with steady FCF generation from divisions & its ability to pool cash resources, ABNL’s standalone balance sheet stands strong to drive

its growth plans. Capital requirements for FY17 are :

• Capex of ~ ` 325 Cr. for divisions including ` 191 Cr. & ` 40 Cr. towards Linen Yarn & VFY capacities expansion

• Equity funding for its 51% share in new ventures viz., (a) Solar Power (b) Payments Bank & (c) Health Insurance

• Capital requirement to the tune of about ` 750 Cr. mainly for scaling up NBFC, Housing Finance & MyUniverse

Exit from sub scale businesses to achieve greater focus on other businesses

Business Divested Carbon Black

IT-ITeS

Effective Date 1st April 2013 9th May 2014

Enterprise Value USD 240 million USD 260 million

Outcome

Supported ABNL’s growth plans

& strengthened balance sheet

Greater focus on core businesses

Creation of India’s largest branded apparel company

To unlock shareholders’ value by consolidating its branded apparels businesses under the pure play listed vehicle, ABNL demerged its Madura division into its erstwhile listed subsidiary Pantaloons Fashion & Retail Ltd. (PFRL) w.e.f. 1st April 2015, through a court scheme of arrangement

Scheme became effective on 9th Jan ‘16 and PFRL was renamed as Aditya Birla Fashion & Retail Ltd. (ABFRL) w.e.f. 12th Jan’16.

ABFRL allotted 26 equity shares to ABNL’s shareholders (as on Record date 21st Jan ‘16) for every 5 equity shares held in ABNL.

With the reduction in resultant holding of ABNL in ABFRL to 9.1%. ABFRL has ceased to be the subsidiary of ABNL. ABNL’s financial results have been recast to exclude ABFRL (Madura + Pantaloons) w.e.f. the appointed date, i.e., 1st April 2015. (Refer Slide 41 for transaction structure)

# 1 Womenswear player

# 1 Menswear player

Aditya Birla Fashion & Retail Ltd.

DELIVERING BEST VALUE TO ALL THE STAKEHOLDERS …

11


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.glassdoor.com/Reviews/Madura-Fashion-Reviews-E526235.htm&ei=9r9DVf-vAsmxuAT8tIHwCg&bvm=bv.92189499,d.c2E&psig=AFQjCNEnawGcUgur11lqWLpu_JqfbuHPgg&ust=1430589778482196

-436

890

1,416

1,886

FY09 FY12 FY15 FY16

Consolidated Net Profit (₹ Crore)

CAGR 56% (FY10-FY15)

14,331

21,840

26,516

23,129

FY09 FY12 FY15 FY16

… AND DRIVING STRONG EARNINGS & VALUE GROWTH

Branded Apparels Financials Services, Telecom & Divisions

867

3,247

5,798 6,535

FY09 FY12 FY15 FY16

Consolidated Revenue (₹ Crore)

Consolidated EBITDA (₹ Crore)

CAGR 11% CAGR 37%


ABNL Structure

Key Highlights

Aditya Bira Financial Services

Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

Note : Pursuant to demerger of Madura Fashion & Lifestyle into Pantaloons Fashion & Retail Ltd.(PFRL), Madura business ceased to be a division of ABNL w.e.f. 1st April 2015 and hence excluded from ABNL’s Standalone financials. Previous year financials are not comparable to that extent.

12

ANCHORED BY A STRONG MANAGEMENT TEAM

ABNL has a balanced Board, comprising of 1 Executive, 2 Non-Executive, 1 nominee & 4 Independent Directors, including 2 women directors.

Independent directors have rich experience in their respective fields and incl. ex-secretary to the President of India and former top executives from

the esteemed organizations viz., Exim Bank, LIC etc.

Ms. Pinky Mehta

Board of Directors

Mr. Lalit Naik, Managing Director

Mr. Ajay Srinivasan

Mr. Thomas Varghese

Mr. Himanshu Kapania

VFY , Chemicals, Agri, Insulators

Financial Services

Textiles

Telecom

Business Head Business

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

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

Business heads & the Chief Financial Officer have wide-ranging experience in the areas of business development, strategy formulation, restructuring, acquisitions, technology management etc.

Some of the senior management team members, prior to joining Aditya Birla Group, have also played key roles in the globally renowned organizations viz., Saint Gobain, Dow Chemicals, Prudential Corporation Asia etc.

Chief Financial Officer

13


ABNL Structure

Key Highlights


Telecom

Divisions

ABG Snapshot

Str

Annexure

New Ventures

CSR

To actively contribute to the social and economic development of the communities in which we operate. To build a better, sustainable way of life for the weaker and marginalized sections of society and raise the country’s human development index.

THE FOCUS AREAS

Vision

Education Health Ca re Sustainable Livelihood

Infrastructure Development Social Causes

Our hospitals & medical centres at plant locations in remote areas of the country attended to over 1 lac patients for minor and major ailments.

Organised over 49 medical camps & 23 speciality medical camps in remote villages in Karnataka, Jagdishpur, Rishra, Veraval and Halol.

Dental and eye camps were organised for school children.

More than 800 rural women participated in the 10 cancer awareness camps organised at Anekal and Ramnagar.

HEALTHCARE

EDUCATION

Supported in the campaign for enrolment, and reduction of dropouts at Bangalore Rural and Urban Districts, Jagdishpur, Veraval, Rishra and Halol. We reached out to 119 schools and 20,053 children.

Initiated special coaching classes and career counselling programmes for students. Uniforms, books, notebooks, writing pads, bags and stationery was distributed to 6,965 children

We continue to support Kasturba Gandhi Balika Vidyalaya (KGBV - Government residential schools for girls). Channapattana,Krishnagiri, Veraval, Jagdishpur and Halol.

Two residential schools at Jagdishpur & Bangalore to help visually impaired children. Functional literacy program conducted in 11 villages at Jagdishpur

Aditya Birla Nuvo’s community engagement spans 163 villages, inclusive of 14 model villages. Our CSR work is in proximity to our 5 manufacturing units across 3 states of the country.

ABNL has spent ` 7.4 Cr. in FY16 on CSR activities in the areas of Education, Healthcare, Sustainable Livelihood, Women Empowerment & Infrastructure Development. Mobilised ` 22.1 Cr. through Govt. schemes, acting as catalysts for the community

Some of the initiatives taken

14


ABNL Structure

Key Highlights


Telecom

Annexure

ABG Snapshot

Telecom

Divisions

Annexure

New Ventures

CSR

SUSTAINABLE DEVELOPMENT

Helping farmers earn better through farmer training programmes on advance cropping techniques and other processes to improve yield.

Launched Project Kaushalya – A Skills Training Centre in collaboration with CII. Integrated Livestock Development, run in collaboration with BAIF providing veterinary support, artificial insemination and vaccinated 5,664 cattle.

Project ANYA, the Women Economic Empowerment initiative:

Through our 17 production centres at Jagdishpur, Veraval and Rishra we trained 717 rural women in Apparel and Jute products manufacturing

Infrastructure Development such as the construction and repair of school buildings, road / repairs in remote locations.

SOCIAL CAUSES To promote dowry less marriages, our unit at Veraval organised mass marriages for 50 couples from the underprivileged community.

Distribution of 40,478 garments to underprivileged people at various charitable organisations at Bangalore. organised a relief camp to help the flood victims of J&K. We reached out to 3,000 families and we gave them 44,060 garments

15


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

CONSOLIDATED EARNINGS MIX – FY16

Segment Revenue Segment EBIT

16


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

40%

36%

24%

Financial Services

Telecom

Divisions

` 23,129 Cr.

31%

48%

21%

Financial Services

Telecom

Divisions

` 3,101 Cr.

17

ADITYA BIRLA FINANCIAL SERVICES (ABFS)

Vision : To be a leader & role model in a broad based & integrated financial services business

Nation wide presence through ~1,350 branches / touch points and more than 1,20,000 agents / channel partners

6,542 6,378 6,637 7,926

9,299

FY12 FY13 FY14 FY15 FY16

Revenue (₹ C ro re )

600 761 727 848

995


Earnings Before Tax (₹ C ro re )

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

AUM at ₹184,276 Cr. (12%↑ y-o-y)

(Mar’ 16)

Anchored by >11,500 employees &

trusted by > 8 million customers

Diversified portfolio with 12 lines of businesses

Entering Strategic Partnerships & Investing in promising sectors

Foray in the NBFC Business

Acquisition of schemes of Apple mutual fund

Consolidation of financial services businesses under Aditya Birla Nuvo Acquisition of Alliance mutual fund

Launched Private Equity Fund

Foray in Housing Finance business Acquired mutual fund schemes & portfolio accounts from ING Mutual Fund IFC became strategic financial investor in MyUniverse

Foray in Mutual Fund business

Foray in Life Insurance business through JV with Sun Life, Canada

Entered retail broking through acquisition of Apollo Sindhoori

Launched India’s largest online money management portal “MyUniverse”

Entered into JV with MMI Holdings to foray into health insurance in India

Sun Life to raise its stake in BSLI from 26% to 49%

Lending book (Including housing finance) at ₹ 27,728 Cr. (57%↑ y-o-y) (Mar’ 16)

-

88,201 107,539


ASSET UNDER MANAGEMENT Others

Equity

1,64,940 1,22,362

CAGR 20%


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

1,84,276

ADITYA BIRLA FINANCE (ABFL) - NBFC

Established in 1991, one of India’s most reputed NBFC’s

Net worth grew 16x from ₹ 235 Crore in Mar’10 to ₹ 3,696 Crore

in Mar’16

Gross NPA - 0.63% Net NPA - 0.22%

(FY16)

Lending book reached

USD 4.0 billion mark (47%↑ y-o-y) (Mar’ 16)

ROE – 15.4% ROA – 2.1%

(FY16)

Highest A1+ rating for short term debt and AA+ rating for long term debt from ICRA and India Ratings

Industry Landscape :

About Business & Competitive Edge:

Strong Parentage Support: Capital Infusion of ~₹ 2,200 Crore in past 5 years to support growth

Experienced Management: Over 200 man years of domain expertise in financial services

Portfolio diversification, client selection & active management key to sustainable growth

Robust Credit Appraisal & Risk Management leading to healthy book and return ratios 3,425

8,000

11,550

17,564

25,755

Mar'12 Mar'13 Mar'14 Mar'15 Mar'16

Lending Book (₹ Crore)

CAGR 66%

Domestic credit provided by the financial sector as % of GDP in India at 75% is very low if compared with 170% to 375% in large economies like China, UK, Hong Kong , US & Japan.

The Share of NBFCs has steadily grown from 10.7% of banking assets in 2009 to 14.3% in 2014, thus gathering systematic importance

Lowering of interest rates, growing capital markets, infrastructure focus of government and projects like “Make In India” & “Digital India” will spur

growth of NBFCs.

18

ABNL Structure

Key Highlights

Divisions

Annexure



ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

628

1079

1769

2585

3696


Net Worth (₹ Crore)

CAGR 56%

ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS

35 36

31 29

25


Opex to Net interest (%)

348 715 1201 1776 2442

56

100

166

271

409


Revenue & Net Profit (₹ Crore)

Revenue Net Profit

19

ABNL Vision –Mission

ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

1.16% 1.23% 1.29%

0.90%

0.63%

0.84% 0.83%

0.58%

0.32% 0.22%


Gross NPA Net NPA

11.4%

14.3% 13.1%

14.6% 15.4%

2.2% 1.9% 1.9% 2.0% 2.1%


ROE ROA

LAP13%

LRD8%

Construction Finance 4%

Promoter 6%

HNI 5%

Broker 3%

Retail & Bonds 3%

SME 11%

Large Corp.9%

Mid-Corp.7%

Corporate Loan 9%

Structured Finance 4%

Project Loan 16%

` 25,755 Cr.(Mar’16)

Segment wise Loan book

Others

2%

20

Total Income / Average Loan Book

Interest Cost / Average Loan Book

Net Interest Income (Incl. Fee income)

Opex / Average Loan Book

Provisioning & Write-offs / Average Loan Book

ROA

13.5%

8.3%

5.1%

1.5%

0.8%

1.85%

13.1%

8.2%

5.0%

1.5%

0.5%

2.0%

12.6%

7.8%

4.8%

1.2%

0.4%

2.1%

Spread Analysis FY 13-14 FY 14-15 FY 15-16

Capital Adequacy ratio at 16.2% (Tier I : 13.7% & Tier II : 2.5%)

Total borrowings at ₹21,409 Crore

Leverage at ~6x

Out of total borrowings 70% is long term Well placed ALM strategy

Aditya Birla Housing Finance (ABHFL)

Footprint expanded to 32 markets in Mar’16 through 36 branches in

15 states.

Net worth at ₹205 Cr. (as on Mar’16)

Commenced operations in Oct’14

Lending book as on Mar’16 is ₹ 1,973 Cr.

Healthy borrowings Profile

ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS

Industry Landscape The housing finance loan book has crossed ₹10 trillion mark (Dec’14). Housing Finance Companies & NBFCs account for 37% of this loan book. An investment to the tune of USD 2 trillion is expected in the housing sector over the next decade, to achieve the Government’s vision of “Housing for All by 2022” and “Development of 100 smart cities”. ABHFL Investing in key systems and processes for loan origination till on-boarding and servicing. An online customer acquisition platform has been setup for digital presence.


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

21

BIRLA SUN LIFE INSURANCE (BSLI)

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between Aditya Birla Nuvo Ltd. and Sun Life Financial Inc, one of the leading international financial services organizations from Canada. BSLI is one of the leading life insurance companies in the country.

AUM

of $ 4.7 billion (as on Mar’16)

No 1 in group business with 25.6% market share2 (FY16)

Among top 5 private life insurers in terms of APE1

FY 15 EV: ₹3260 Crore

VNB Margin : 14.1%

India’s Insurable population to touch 75 crore by 2020.

Ranked 10th among the 147 countries in the life insurance business.

Life insurance sector to increase at a CAGR of 12-15% over next five years

Total Market size of India’s Insurance sector projected to touch US$ 350-400 billion by 2020 from US$66.4 billion in FY13

Industry Outlook*

About Business :

A nation-wide presence with 489 branches, 3 key bancassurance partners, ~ 70 thousand direct selling agents and more than 150 corporate

agents & brokers.

Balanced sales mix: In FY16, non-ULIP contributed to 63% of individual new business, out of which share of PAR products was 43%

Ranks among top 5 private players in India with new business1 market share of 7.6% in year ended 31st Mar’16

Sun Life has bought 23% stake in BSLI from ABNL for ` 1,664 Cr. in April 2016 valuing BSLI at ` 7,235 Cr.

* Media Reports, Press Releases, IRDA Journal

Note 1: APE = Annual Premium Equivalent =100% of regular premium + 10% of single premium Note 2 : In terms of APE among private sector players


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

22

BSLI: FINANCIAL HIGHLIGHTS

99

315 350

FY12 FY13 FY14

Surplus funds distributed through Dividend & Buy-back

(₹ Crore)

4015 3687

3225 3260

FY12 FY13 FY14 FY15

Embedded Value (₹ Crore)

3,959 3,380 3,136 3,295 3,359

1,926

1,837 1,697

1,938 2,220


Total Premium Income (₹ C ro re )

New business Renewal


GROWTH IN AUM (₹ Cro re )

Equity AUM Debt & Liquid

5691

5037 4702

5267 5,708

461 542 371 285 140


Revenue & PAT (₹ Crore)

Revenue PAT

5,885

5,216 4,833

5,233

21,110 22,929

24,775

30,185 30,811

55% 59% 58% 62% 71%

45% 41% 42% 38% 29%

22.8%

16.6% 16.2% 14.1%

FY12 FY13 FY14 FY15

VNB Margin %


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

5,580

23

BIRLA SUN LIFE ASSET MANAGEMENT (BSLAMC)

It offers a range of investment options, including diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds. With monthly SIP book size of ` 282 Crore (59% ↑ y-o-y) and live SIP market share of 9.69% (82 bps↑ y-o-y), BSLAMC is consistently gaining market share with a strong focus on scaling up retail and higher margin assets.

4th Largest AMC In India

AAUM of

$23.5 billion (as on Mar’16)

109 branches & over 47000 IFAs

#4 in Equity AAUM Asset Management

House of the year award by Money Today FPCIL 2015

9.09%

10.09% 10.10%

5.50%

7.11%

7.61%

Q4FY11 Q4FY15 Q4FY16

Rising market share

Domestic Market Share Equity Market Share

Established in 1994, Birla Sun Life Asset Management Company Limited (BSLAMC) is a joint venture between Aditya Birla Nuvo and Sun Life Financial Inc,

315

405

502

596

765

59 73 95 123

203


Revenue & PAT (₹ Crore)

Revenue PAT


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

11,313 25,881 31,891

52,383

93,871 104,612

3,864

13,718

15,924

Q4FY11 Q4FY15 Q4FY16

Growth in AAUM

Equity Fixed Income Offshore & Alternate assets

67,560

133,470

152,427 CAGR 18%

24

Aditya Birla Insurance Brokers (ABIBL) (General insurance advisory)

INSURANCE ADVISORY, PRIVATE EQUITY, HEALTH INSURANCE

₹ Crore ABCAP

2014-15 2015-16

Revenue 21 20

Earning Before Tax 6 6

Net Profit

4 5

PE Funds under management (net) at ₹1,037 Cr.

Both Fund 1 & Sunrise fund have invested their net deployable corpus as on 31stMar16.

Planning to launch 3rd fund soon.

Aditya Birla

Capital Advisors

(ABCAP)

Leading General Insurance advisory Player

In FY16, ABIBL’s premium placement increased y-o-y by 43% to ₹ 1,624 Cr. while

industry premium grew by 14%

Consistently outperforming industry and gaining market share

₹ Crore ABIBL

2014-15 2015-16

Revenue 73 97


Net Profit 18 21

Health

Insurance 0.50%

0.93% 1.16%

1.33%

1.68%


ABIBL Market share


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot Entered into a JV agreement with MMI Holdings Ltd. (a leading South African insurance-based financial services group) in Jun’15 to foray in health insurance business in India.

MMI holdings Ltd. has received an in - principle approval from FIPB

Regulatory Approval from IRDAI is awaited

Aditya Birla Health Insurance Co. Ltd ., currently a 100% Subsidiary of ABFS, is proposed to be a 51:49 joint venture with MMI Holdings Ltd.

Launch of services likely in H2 FY17, subject to regulatory approvals

25

ADITYA BIRLA MONEY

Online Money Management

Aditya Birla Money MyUniverse

The Broking, Wealth management and Online Money Management businesses serves over

2.3 million customers through more than 675 branches

MyUniverse is India’s #1 online personal finance management platform

enjoying trust of over 2.6 million registered users who are managing more than ₹ 20,000 Cr. through MyUniverse

IFC has become strategic financial investor in My Universe

MyUniverse is the 7th largest SIP distributor by numbers in India

₹ Crore ABMM

2014-15 2015-16

Revenue 86 60

Earning Before Tax 6 (9)

Net Profit/(Loss)

5 (9)

₹ Crore ABML

2014-15 2015-16

Revenue 119 120


Net Profit/(Loss) 6 3

Broking

Aditya Birla Money (ABML)

ABML is a broking and distribution player, offering Equity and Derivative trading through NSE and BSE and Currency

Derivative on MCX-SX. It is registered as a Depository Participant with both NSDL and CDSL and also provides

commodity trading on MCX and NCDEX through its subsidiary.

ABMM is a wealth management and distribution player, offering third

party products like company deposits, mutual funds, insurance,

structured products, alternate investments, property services and has a

premier wealth management service arm to cater to HNI customers.

Avg. Assets under Advisory at ₹7,814 Cr. (Q4 FY16)

Equity assets under advisory at ₹2,185 Cr (20%↑ y-o-y)

Wealth Management

Aditya Birla Money Mart

(ABMM)


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

ABFS : FY2015-16 PERFORMANCE

Earnings before Tax at ₹ 1,110 Cr. (21%↑ y-o-y) Revenue at ₹ 9,192 Cr. (16%↑ y-o-y)

₹ Crore

26


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

Revenue

FY15 FY16 ∆% Company

EBT

FY15 FY16 ∆% Remarks on profitability

1,776 2,442 37% NBFC 411 626 52% Expansion of lending book (47%↑ y-o-y)

5,267 5,708 8% Life Insurance 285 140 51% Lower in-force book & higher expense gap

596 765 28% Asset Management 182 314 73% Growth in AUM (14%↑ y-o-y)

73 97 33% General Insurance Advisory 27 33 23% Higher premium placement (43%↑ y-o-y)

119 120 Broking 6 4 28% Lower volumes in retail equity cash & F&O

86 60 30% Wealth Management 6 (9) 127% Cap on upfront commission on MF sales

21 20 3% Private Equity 6 6

(18) (20) Others / Elimination (7) (4)

7,920 9,192 16% Established businesses 915 1,110 21%

5 107 New Businesses (67) (115) Housing Finance, MyUniverse & Health

Insurance are in the investment phase

7,926 9,299 17% Total 848 995 17%

Source: (1) As of Nov 30, 2015 based on TRAI report (2) As of June 2015, TRAI performance Indicator Report (3) Q3FY16 over Q3FY15 (4) TRAI revenue for Q3FY16 for UAS and mobile licenses only

IDEA CELLULAR (TELECOM)

Industry Growth Drivers:

Voice: Indian Active subscriber penetration (measured on VLR) at 71.7% (~907 million subscribers)(1) Low rural subscriber penetration of 49.5% (432Mn)(1). In FY15 ~65% of new subscribers came from rural areas

Data: Wireless Internet penetration at 30.6% (300Mn)(2) of Total Mobile Subscribers. Another 580Mn+ users yet to adopt Digital Services. Nascent 9.5%(2) penetration of mobile broadband subscribers (93Mn subscribers)

About business & Competitive Edge

Strong 72.7% y-o-y mobile data traffic growth (FY16 over FY15) Incremental RMS growth @ 59%3 over last year Highest RMS improvement in the industry at 4.1% over last 3 years5

Idea has grown more than 2 times faster than industry over last 3 years6 with CAGR 17.9%. (Industry CAGR - 8.5%) Idea holds 16% stake in one of the world’s largest tower company Indus Towers With 3G & 4G spectrum covering 87% of its revenue, Idea is competitively well placed to capture the data opportunity Capex guidance for FY16 (excl. spectrum payouts) stands at ` 65-70 billion on account of accelerated 4G rollout Annual cash profit generation of over ` 10,000 Cr. will support balance sheet and growth plans

19489 22407

26432

31527

35935

FY 12 FY 13 FY 14 FY 15 FY16

Consolidated Revenue (₹ Crore)

The fastest growing Indian Telco

580 mn 93 mn

Wireless Internet Users

Mobile Broadband Users- 9.5% of wireless subs

Users yet to adopt digital services

Mobile Data : The Next Opportunity

# 6 mobile Operator in the World with 184 million

active subscribers

# 3 mobile Operator in India with 18.9% RMS

4

Strong Balance sheet Net Debt to EBITDA : 3.25x

(Standalone as on 31st Mar’16)

Pan India Pure Play Wireless Operator – (Voice + Data)

(2G+3G*+4G**)

(5) Q3FY16 over Q3FY13

(6) Q2FY16 over Q2FY13

*3G in 21 service areas including 8 intra-Circle Roaming arrangements.

**4G in 10 service areas 27

CAGR 17%


ABNL Structure

Key Highlights


Divisions

New Ventures

Annexure

ABG Snapshot

Telecom

300 mn

14.4 14.8 16.1

17.5 18.9

Q3FY12 Q3FY13 Q3FY14 Q3FY15 Q3FY16

Revenue Market Share (%)

IDEA : FINANCIALS HIGHLIGHTS

131 143 165

230 258

133 140

206

269

415


Balance Sheet (Figures in ₹ billion)

Net Worth Net Debt

86 165

243

363

453 532

588

683

786

24 43

64

90

113 122

136

158

184

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Robust growth in Subscribers & MOUs

Robust growth in MOUs (billion minutes)

Subscribers

55 104 150 147

33.9

25.3

25.7

22.9

Q4FY13 Q4FY14 Q4FY15 Q4FY16

Improving Data ARPU

Data ARPU(INR) ARMB(paisa)

586 MB

163 MB

410 MB

641 MB

Usages per subs

Incremental

RMS 59%

36.1

47.0

64.4

84.8

101.2


Cash Profit - Standalone (₹ Crore)

50.85 60.71

85.19

112.81

132.57

7.2 10.1 19.7

31.9 30.8


EBITDA Net Profit

CAGR 27%

(₹ billion)

CAGR 29%

28


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

Business Market Position Opportunity & Outlook Strong ROACE%

(FY16)

Jaya Shree India’s #1 Linen player & leading

manufacturer of wool tops & worsted yarn

• 70% of linen yarn demand in India is met through

imports 44% p.a.

Agri 8th largest urea manufacturer and among the top 2 energy efficient urea plants in India

• 28% of urea demand in India was met through imports during FY15

• Gas pooling policy to benefit the urea sector

11% p.a.

Rayon Largest manufacturer & exporter of VFY in India

• Premium is driven by quality and value added yarns

• Indian market continues to favour fine & superfine

denier yarn

30% p.a.

Insulators India’s largest & world’s 4thlargest • Long term anti-dumping duty (till Sep’2019) to

benefit domestic manufacturers 22% p.a.

DIVISIONS (JAYA SHREE, INDO-GULF FERTILISERS, INDIAN RAYON & ADITYA BIRLA INSULATORS)

Revenue (FY16) at ₹ 5,466 Cr. (1%↑ y-o-y) EBITDA (FY16) at ₹ 764 Cr. (24%↑ y-o-y)

ROACE improved from 14% p.a. in FY14 to 16% p.a. in FY15 to 21% p.a. in FY16

29


ABNL Structure

Key Highlights


Telecom

New Ventures

Annexure

ABG Snapshot

Divisions

1,046 1,144 1,300

1,435 1459

FY 12 FY 13 FY 14 FY 15 FY 16

Revenue (₹ Crore)

CAGR 9%

JAYA SHREE

VFY has a niche market globally - Premium is driven by quality and value added yarns

Expansion Plans :

Rising share of linen led by expansion contributing to profitable growth. Targeting to further expand Linen Yarn capacity from 3,400 TPA to 6,200 TPA to tap sector growth.

141 154 172 175 175

FY 12 FY 13 FY 14 FY 15 FY 16

EBITDA (₹ Crore)

39%

61%

50% 50%

Revenue Mix LINEN WOOL

India’s #1 Linen player Leading manufacturer of wool tops and worsted yarn in India

Drove journey of linen from a commodity to a lifestyle symbol in India & expanded its Market size

Opportunity :

Increasing popularity of Linen as a comfort & style fabric will drive growth of linen fabric demand at a CAGR of 10% in next five years. Currently ~70% of linen yarn demand is met through imports denoting expansion opportunity for domestic players

88 179 317 237 416

82%

97%

57% 53% 44%

FY 12 FY 13 FY 14 FY 15 FY 16

Capital Employed (₹ Cr.) ROACE (%)

CAGR 6%

30


ABNL Structure

Key Highlights


Telecom

New Ventures

Annexure

ABG Snapshot

Divisions

Linen Capacities : Yarn – 3,400 TPA, Fabric - 10.1 million metres p.a. Wool Capacities : Worsted Yarn - 26,356 spindles, Wool Combing - 8 Cards Focusing on retail expansion & brand promotion to fortify ‘Linen Club’ fabric brand - Retailing linen fabric through 131 EBOs and 4,000+ MBOs Operating at a sound ROACE of 44% p.a. (FY16)

Leadership Position:

INDO GULF FERTILIZER (AGRI-BUSINESS) 8th Largest urea manufacturer in India &

Among the top 2 energy efficient urea plants in India

A complete agri-solutions provider offering Fertilisers, Seeds and agro-chemicals Strong brand “ Birla Shaktiman” is preferred choice of farmers also offering value adding variety – Neem coated “Krishi Dev”

1st company to introduce the principles of Six Sigma in the agricultural fields

Business Overview :

Industry Scenario & Regulations :

Acute deficit of urea in India – 28% of the urea demand in India was met through imports during 2014-15 Due to government policy for urea production beyond 100% quantity as permissible under Pricing mechanism, few urea manufacturers had to shutdown their plant during 2013-14 and 2014-15 Indo-Gulf had to take plant shutdown for 41 days in 2013-14 and for 35 days in 2014-15, thereby, pulling down earnings from normalised level. Government’s gas pooling policy aiming to improve plant efficiency & reduce subsidy outgo will benefit the urea sector

Earnings : Revenue at ₹ 2,498 Cr. and EBITDA at ₹209 Cr. (41%↑y-o-y) during FY16. Highest Production achieved in FY16 led by gas pooling policy.Led by realisation of subsidy, capital employed reduced to ₹ 1,525 Cr. in Mar’16 and ROACE improved to 11% p.a. in FY16.

2,107

2,924

2,313 2,558 2,498


Revenue (₹ crore)

176 211 197

77

148

209

FY11 FY12 FY13 FY14 FY15 FY16

EBITDA (₹ crore)

984

1,854 1,616 1,641 1,525

26%

12%

3% 7%

11%



A Complete Agri-solution provider with

strong brand ‘Birla Shaktiman Stronger farmer connect & strategically located in the

heartland of Indo-Gangetic plains

31


ABNL Structure

Key Highlights


Telecom

New Ventures

Annexure

ABG Snapshot

Divisions

80%

20%

Revenue Mix

VFY

Chemicals FY16

32

INDIAN RAYON (VFY AND CHEMICALS)

Opportunities:

Expanded its presence in fine & superfine yarn segment using Spool Technology from Germany in Mar’13. Current VFY capacity at 19,800 TPA and caustic soda capacity at 91250 TPA

680 777

860 865 928


Revenue (₹ crore)

128

189 222

197

266


EBIDTA (₹ crore)

515 681

759 757 715

19%

26% 24%

21%

30%



The Largest manufacturers and Exporter of VFY in India

43% VFY production share & 55% share in VFY exports in FY15

Integrated facilities with Caustic Soda & 34.5 MW captive power plant

Business Overview:

VFY has a niche market globally – Premium is driven by quality & value added yarns. Indian market continues to favour fine & super fine denier yarn. Anti Dumping duty imposed on caustic soda imports from China & Korea for 5 years

Earnings :

In FY15, VFY segment posted highest ever profitability led by expanded new superfine yarn capacity and enhanced product quality & range. In Chemicals Segment, maintenance shutdown in Caustic Soda plant & lower ECU realisation impacted earnings. Revenue at ₹ 928 Cr. & EBITDA at ₹266 Cr. (35%↑y-o-y) in FY16 led by higher volumes & improved realisation in both VFY & Caustic Segments ROACE improved to 30% p.a in FY16


ABNL Structure

Key Highlights


Telecom

New Ventures

Annexure

ABG Snapshot

Divisions

ADITYA BIRLA INSULATORS(ABI)

ABI is the largest producer of insulators in India with a capacity of 45,260 TPA. Power Grid corporation of India & State Electricity Boards , ABB, Areva, Siemens etc. are amongst major customers

Business Overview: :

Recorded revenue of ₹ 581 cr. (6%↑Y-o-Y) in line with volume growth while EBITDA rose by 19% to ₹ 114 Cr. during FY16. ROACE improved to 22% p.a. in FY16

Earnings:

468 454 505

548 581


Revenue (₹ Crore)

67 61

83 95

114


EBITDA (₹ Crore)

375 395 430 455 401

12% 10%

15% 17%

22%


Capital employed (₹ Cr.) ROACE (%)

#1 manufacturer of insulator in India. Exporting to over 58 countries worldwide.

4th largest manufacturer of insulator globally.

The power generation , transmission & distribution sector is the key growth driver for insulators industry. With mission of “Power for all by 2019”& “Make in India” campaign, power sector is expected to witness encouraging medium to long term growth opportunities Cheaper Chinese imports had adversely impacted domestic players over past few years and the industry had appealed for anti-dumping duty. The Ministry of Finance, on 16th Sep’14, imposed an interim anti-dumping duty on imports of insulators from China and on 11th Apr’15, extended the duty till 15th Sep’19 to create a level playing field for the domestic manufacturers.

Industry Scenario :

33


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

Solar Power : ABNL had entered into a 51:49 JV with the Abraaj Group, will bid for the solar power projects, with an aim to build a large scale renewable energy

Won a total of 60 MW Solar Power projects in three talukas of Karnataka in March 2016.

platform focused on developing utility-scale solar power plants in India

The JV brings together highly experienced management and operations teams with strong execution capabilities

Industry Landscape:

With Increasing demand for power and favourable regulatory policies to foster use of renewable energy, Renewable energy is set for explosive

growth. India has a solar power installed capacity of 3.7GW as of Mar’15 & has an ambitious target of 100 GW by 2022.

To promote renewable energy and energy security, cabinet has approved amendments in power tariff policy mandating 8% share of Solar energy

in total electricity consumption (excl. hydro power) by March 2022

NEW VENTURES

34


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

RBI has given an in-principle approval to ABNL for setting up a Payments Bank as promoter. The proposed Payments Bank incorporated as

Aditya Birla Idea Payments Bank Ltd. in a 51:49 Joint Venture (JV) between ABNL and Idea Cellular. The JV will apply to RBI for the final grant

of license which will be subject to fulfilment of certain regulatory pre-requisites.

Gearing to launch consumer services by H2 of calendar year 2016, the JV will capitalise on Idea’s nationwide reach of 2 million+ retail distribution

channel across 383,000 towns & villages & ABNL’s experience of successfully promoting & scaling up a number of consumer centric businesses

The JV will promote range of services incl. opening of savings bank account, domestic remittances, merchant payments etc. & tying up with third

parties for offering range of Credit, investment & Insurance products. In the long run the NEFT/IMPS and PPI business of Idea Cellular will be

integrated with the proposed Payments Bank

Payments Bank:

SHAREHOLDING PATTERN & MARKET CAP

Category

As on 31st March 2016

No . of Shareholders

No. of Shares held (in million)

Shareholding (%)

Promoter & Promoter Group 19 76.05 58.4%

Foreign Institutional Investors 203 15.66 12.0%

Domestic Institutional Investors 235 18.08 13.9%

Non-Institutional Investors 1,35,446 20.42 15.7%

Total 1,35,903 130.22 100.0%

Trusted by 131,379 shareholders

Over 98% of shares are in dematerialised form

Face value of ₹ 10 per share

For analysts coverage on ABNL visit :

http://www.adityabirlanuvo.com/Analyst_Coverage.php

Institutions Shareholding %

Life Insurance Corp. of India 4.7

Reliance Capital Asset Management Ltd. 3.3

HSBC Global Investment Funds 1.4

Franklin Templeton Asset Management (India) Pvt. Ltd. 1.1

UTI Asset Management Company Ltd 0.9

Tata Asset Management Limited 0.8

Stock Code:

BSE : 500303

NSE : ABIRLANUVO

Reuters : ABRL.BO / ABRL.NS

Bloomberg : ABNL IN

9,336 9,244 10,723 11,727 14,196

21,654

10,712 13,227

Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 25th May'16

906 814 945 976 1091

1664

823 1016

ABNL Share Price (₹) Market Cap (₹ Cr.)

35


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

ABG Snapshot

Annexure

Demerger of Fashion Business



CONSOLIDATED RESULTS – SEGMENTAL (FY15 & FY16)

Consolidated Results Revenue EBIT 2014-15 (PY) 2015-16 (CY) 2014-15 (PY) 2015-16 (CY)

9,299

5,708

3,598

(6)

8,361

5,466

1,459

2,498

928

581

7

(4)

23,129

-

-

-

23,129


Life Insurance

Other Financial Services*

Elimination

Telecom (Nuvo’s Share) @

Divisions

Jaya Shree

Agri

Rayon

Insulators

Solar

Inter-segment Elimination

Consolidated Results (From Continuing Operations)

Aditya Birla Fashion & Retail $

IT-ITeS^

Inter-Segmental Elimination

Consolidated Results

977

140

837

-

1,484

639

144

176

223

96

1

-

3,101

-

-

-

3,101

36


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

ABG Snapshot

Annexure

(₹ Crore)

* Other Financial Services include Asset Management, NBFC, Housing Finance, Private Equity, Broking, Wealth Management, Online Money Management & General Insurance Broking businesses. Interest cost of NBFC business, being an operating expense as per AS 17, is deducted from Segment EBIT

@ Idea is consolidated at ~25.3% till 10th June 2014, at 23.63% till 23rd July 2014 and at ~23.3% thereafter ^ IT-ITeS business was divested w.e.f 9th May 2014 $ Madura Fashion & Lifestyle has been de-merged into listed subsidiary Pantaloons Fashion & Retail Ltd. (PFRL). PFRL was renamed as ABFRL. ABFRL has ceased to be a subsidiary of ABNL w.e.f. 1st April 2015

7,926

5,267

2,666

(7)

7,467

5,405

1,435

2,557

865

548

-

(0)

20,798

5,450

283

(16)

26,516

814

285

529

-

1,305

494

146

116

156

76

-

-

2,613

261

(16)

-

2,857

CONSOLIDATED RESULTS (Like-to-Like)

37


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

ABG Snapshot

Annexure Note 1: Pursuant to demerger of Madura Fashion & Lifestyle into Pantaloons Fashion & Retail Ltd. (PFRL), Madura & Pantaloons businesses ceased to be division and subsidiary of ABNL, hence excluded

from consolidated financials w.e.f. 1st April 2015. IT-ITeS subsidiary was divested w.e.f. 9th May 2014. To make the performance comparable, like-to-like financials for the previous year are exhibited excluding Madura, Pantaloons and IT-ITeS businesses.

Note 2: Net profit for the year ended 31st Mar’16 includes exceptional gain of ` 357 Cr. pertaining to cessation of PFRL as subsidiary of ABNL.

Revenue

( ` Crore)

5,673 6,425

FY15 FY16Like-to-Like1 Reported

13%

20,798 23,129

11%

EBITDA

( ` Crore)

1,378

1,781

29%

5,272

6,535

24%

Net Profit

( ` Crore)

333 327

2%

1,447 1,886

30%

Q4

Full Year






2

STANDALONE RESULTS (Like-to-Like)

38


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

ABG Snapshot

Annexure

Note 1 : Pursuant to demerger of Madura Fashion & Lifestyle into Pantaloons Fashion & Retail Ltd.(PFRL), Madura business ceased to be a division of ABNL w.e.f. 1st April 2015 and hence

excluded from ABNL’s previous year financials to make the performance comparable.

Revenue

( ` Crore)

1,134 1,189


5%

5,405 5,466

1%

EBITDA

( ` Crore)

108

181

67%

710 846

19%

Net Profit

( ` Crore)

18

62

325 360

11%

Q4

Full Year






248%

2014-15 (PY)

5,466

846

-

280

566

119

447

56

503

143

-

360

23,129

6,535

1,600

717

4,218

1,727

2,491

414

2,905

872

147

1,886

Revenue

EBITDA

Less : NBFC Interest Expenses

Less : Other Interest Expenses

EBDT

Less : Depreciation

Earnings Before Tax(Before exceptional items)

Exceptional Gain / (Loss)

Earnings Before Tax

Less : Provision for Taxation (Net)

Less : Minority Interest

Net Profit One-off items:

Pursuant to demerger of Madura Fashion & Lifestyle into Pantaloons Fashion & Retail Ltd.(PFRL), Madura & Pantaloons businesses ceased to be division & subsidiary of ABNL w.e.f. 1st April 2015 & hence excluded from

ABNL’s consolidated financials. Previous year financials are not comparable to that extent.

In FY15, exceptional loss of ` 13 Cr. pertains to divestment of Minacs. This loss is without considering deferred consideration of ~` 42 Cr. receivable over next 3 years. In FY16, exceptional gain includes (a) ` 357 Cr.

w.r.t. cessation of PFRL as subsidiary pursuant to de-merger of Madura, (b) ` 50 Cr. received for facilitation of development of distribution network for financial services business & (c) ` 6.4 Cr. received as deferred

consideration w.r.t. divestment of Minacs.

PROFIT & LOSS (FY15 and FY16)

Profit & Loss Account Standalone Consolidated 2015-16 (CY) 2014-15 (PY) 2015-16 (CY)

(₹ Crore)

39


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

ABG Snapshot

Annexure

8,938

1,186

-

263

922

189

733

-

733

205

-

528

26,516

5,798

1,105

652

4,041

1,703

2,338

(13)

2,325

833

76

1,416

BALANCE SHEET

Balance Sheet Standalone Consolidated Mar - 14 Mar - 15

11,189

778

10,893

9,647

504

33,012

23,557

56,569

13,045

4,982

11,550

730

410

24,764

23,435

1,329

1,089

860

2.3

0.88

Mar - 14 Mar - 15 Net Worth

Minority Interest

Debt

NBFC Borrowings(Incl. Housing finance)

Differed Tax Liabilities (Net)

Capital Employed

Policy holder’s Funds(Incl. funds for future appropriation)

Total Liabilities

Net Block (Incl. Capital Advances)

Goodwill

NBFC Lending (Incl. Housing finance)

Net Working Capital

Long Term Investments

Life Insurance Investments

Policyholder’s Investments

Shareholder’s Investments

Cash Surplus & Current Investments

Book Values (₹ )

Net Debt / Annualised EBITDA (x)

Net Debt / Equity (x)

Mar - 16

8,559

-

3,904

-

173

12,637

-

12,637

1,589

-

-

1,464

9,465

-

-

-

119

657

4.5

0.44

Mar - 16

14,535

857

13,570

22,914

788

52,665

29,375

82,039

19,052

2,209

27,728

196

378

30,727

29,022

1,705

1,749

1,116

2.4

0.81

40


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

ABG Snapshot

Annexure

(₹ Crore)

Note : Pursuant to demerger of Madura Fashion & Lifestyle into Pantaloons Fashion & Retail Ltd. (PFRL), PFRL ceased to a subsidiary of ABNL, hence excluded from consolidated financials w.e.f. 1st April 2015.

8,108

-

3,753

-

88

11,949

-

11,949

1,845

20

-

1,574

7,952

-

-

-

557

623

2.6

0.39

8,519

-

3,688

-

106

12,314

-

12,314

1,859

20

-

1,635

8,695

-

-

-

105

655

3.0

0.42

12,871

802

11,299

14,686

485

40,142

28,839

68,981

12,342

3,973

17,706

160

408

30,147

28,595

1,552

4,246

989

1.5

0.55

TRANSACTION STRUCTURE Pre De-merger

Post De- merger & allotment of shares by ABFRL (As on 27th Jan 2016)

TRANSACTION STEPS SWAP RATIO

41


ABNL Structure

Key Highlights


Telecom

Divisions

New Ventures

Annexure

ABG Snapshot

PFRL

57.2% 42.8%

27.4% 72.6% #

Public

MGLRCL

Madura Lifestyle

100% #

ABNL 1

2

# Including indirect holding

57.2% 50.4%

Public

ABFRL

Madura Lifestyle

42.8% 40.5%

9.1% #

ABNL 3 4

Mirror Demerger of Madura Fashion division into PFRL

Mirror Demerger of Madura Lifestyle division into PFRL

Scheme becomes effective and PFRL renamed as ABFRL

ABFRL ceased to be subsidiary of ABNL

26 equity shares of PFRL for every 5 equity shares of ABNL

7 equity shares of PFRL for every 500 equity shares of MGLRCL

1 equity share of PFRL for all o/s preference shares of MGLRCL

A shareholder holding 10 shares in ABNL pre-demerger, will now hold 10 shares in ABNL & 52 shares in ABFRL

1

2

3

4

Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements” including, but not limited to, those

relating to general business plans & strategy of Aditya Birla Nuvo Limited ("ABNL"), its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in ABNL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in the countries in which ABNL conducts business. Important factors that could make a difference to ABNL’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in ABNL’s principal markets, changes in Government regulations, tax regimes,

competitors actions, economic developments within India and the countries within which ABNL conducts business and other factors such as litigation and labour negotiations.

This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of ABNL's shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of ABNL.

ABNL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy,

completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. ABNL assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. ABNL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner.

INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY OTHER SECURITY OF ABNL

This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. These materials are not an offer of securities for sale in or into the United States, Canada or Japan.

DISCLAIMER

42

Copyright © 2016 Aditya Birla Nuvo Ltd.

Corporate Identity Number L17199GJ1956PLC001107

Regd. Office: Indian Rayon Compound, Veraval – 362 266 (Gujarat)

Corporate Office: 4th Floor ‘A’ Wing, Aditya Birla Center, S.K. Ahire Marg, Worli, Mumbai – 400 030

Website: www.adityabirlanuvo.com or www.adityabirla.com Email: [email protected]

Contact Us

Aditya Birla Nuvo Limited

Investor Relations Contact Romi Talwar | Corporate Finance & Investor Relations | Aditya Birla Nuvo Ltd.

Address : Aditya Birla Centre | A-Wing | 4th Floor | S. K. Ahire Marg | Worli | Mumbai 400030

Phone : +91 22 2499 5573 | Email : [email protected] 43

http://www.adityabirlanuvo.com/

http://www.adityabirla.com/

mailto:[email protected]




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