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

2

Contents

The Aditya Birla Group

Indian Economy and Aditya Birla Nuvo‟s presence

Aditya Birla Nuvo : Overview & Financial Snapshot

Our Businesses

Financials : Profit & Loss Account and Balance Sheet

Annexure: Business-wise detailed overview, Shareholding Pattern, Management Team

3

4 - 6

7 – 11

12 – 21

22 – 27

28 – 55

Note 1: The Hon'ble High Court of Delhi has granted an ex-parte ad interim stay on its earlier order sanctioning the Scheme of Amalgamation of erstwhile

Spice Communications Limited with Idea Cellular Limited (Idea), a joint venture (JV) of Aditya Birla Nuvo Ltd. (ABNL). As a result of this extra

ordinary situation, Idea has not published its Financial Statements (FS) for the quarter and the year ended 31st March 2011. In absence of FS from

Idea, ABNL has decided to publish unaudited consolidated results for the quarter and the year ended 31st March, 2011, considering FS of Idea for

the nine months period ended 31st December, 2010 being the latest period for which Idea has published its financial results. For the purpose of

making consolidated results comparable, ABNL has provided pro-forma consolidated results for the year ended 31st March, 2010 considering FS of

Idea for the nine months period ended 31st December, 2009. ABNL will publish its Audited Consolidated Financial Results for the year ended 31st

March 2011, on receipt of FS of Idea.

Note 2 : USD 1 = ` 45; 1 billion = 100 Crore

Note 3 : The financial figures in this presentation have been rounded off to the nearest ` 1 Crore

3

Part of the Aditya Birla Group

A USD 30 billion Corporation, the Aditya Birla Group is in the league of fortune 500

Operating in 31 countries across 6 continents with over 60% of revenue flowing from its 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)

6th great place for Leaders in Asia Pacific Region (Source : Hewitt Associates, in partnership with The RBL Group & Fortune)

Anchored by 1,31,000 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 6 Life Insurance (in terms of new business premium)

Asset Management (in terms of average AUM)

Global positioning

Aluminium World‟s largest aluminium rolling unit

VSF World‟s largest manufacturer

Carbon Black 4th largest manufacturer in the world

Cement 8th largest manufacturer in the world

Our Values – Integrity, Commitment, Passion, Seamlessness, Speed

4

India : On the World Map

-10.0%

-5.0%

0.0%

5.0%

10.0%

Ch

ina

India

Indo

ne

sia

S K

ore

a

Bra

zil

US

Ho

ng

Ko

ng

UK

Ja

pa

n

Ru

ssia

World : Real GDP growth rates – 2009

Source: IMF World Economic Outlook Database, CSO, RBI, Ministry of Finance and CIRA Estimates

The 4th largest economy by GDP (at Purchasing Power Parity) in the World

One of the highest GDP growth rates in the world

A free- market democracy with a robust legal and regulatory framework

Largely domestic driven due to lower dependence on exports

About 70% of India‟s population resides in rural counterparts which is largely isolated from global cues

India has the largest number of listed companies and the third largest investor base in the world

0%

4%

8%

12%

. FY'02 FY'04 FY'06 FY'08 FY'10 FY'12E

India : Real GDP growth rates

5

Savings led Consumption led Infrastructure led Exports led

Growth Drivers

High rate of savings Rising income levelsHigh rate of

capital formationRising outsourcing trend

Lower penetration of

financial servicesA large young population

Steady economic

reform regime

Highly skilled

human capital

Growing awareness

for financial planningBurgeoning middle class

Investor friendly policies

Increasing FII & FDI flowLow cost destination

Key sectors to

benefitFinancial Services

Telecom, Organised Retail,

Fashion & Lifestyle,

Automobiles

Power, Roads,

AgricultureIT-ITeS

India : Huge investment opportunities across the sectors

Source: CSO, UN

0

15

30

45

60

India

Chin

a

US

A

UK

Japan

25

35 3740

45

A Young Population

(Median Age – 2010)

15%

25%

35%

45%

.

FY

'02

FY

'04

FY

'06

FY

'08

FY

'10E

Savings & Capital Formation

(as % of GDP) Capital

Formation

Savings

0

400

800

.

FY

'02

FY

'04

FY

'06

FY

'08

FY

'10

Rising per Capita Income

(USD)

6

Aditya Birla Nuvo : Present across a wide spectrum

1Manufacturing businesses include Agri-business, Carbon Black, Rayon, Insulators and Textiles

Agriculture & Services

57%Industry

43%

Mfg.1

Financial

Services

IT-ITeS

Telecom

Fashion &

Lifestyle2

Well positioned to capitalise on growth opportunities available across the wide spectrum of Indian economy

Anchored by more than

50,000 employees

Trusted by more than 1.5

lacs shareholders

Nationwide presence

through 1 million touch

points / channel partners

Touching lives of ~100

million Indians

Aditya

Birla Nuvo

: A large

eco-system

ABNL‟s presence across sectors

India‟s sectoral GDP

2Branded apparels & accessories

7

Our Vision

“To become a premium conglomerate

with market leadership across businesses

delivering superior value to shareholders

on a sustained basis”

Kumar Mangalam Birla

Chairman

8

Manufacturing

Textiles1

Carbon Black1

Rayon1

Agri-Business1

IT-ITeS2

(88.28%)

Fashion &

Lifestyle1

Financial

ServicesTelecom3 #

(25.35%)

Asset Management3

(50%) *

Life Insurance2

(74%)*

NBFC2

Private Equity2

Broking (75%)2

Wealth management2

General Insurance Advisory (50%)2

Insulators1

A ~USD 4 billion conglomerate

Note : Percentage figures indicated above represent ABNL‟s shareholding in its subsidiaries /JV‟s

Represent Joint VenturesRepresent Subsidiaries *JV with Sun Life Financial, CanadaRepresent Divisions # Listed, Aditya Birla Group holds 46.04%1 2 3

9

Financial snapshot : Consolidated

FY07 FY08 FY09 FY10 FY 10^ FY11^

8,043

11,375

14,331 15,521

14,645

17,102

Revenue (` Cr.)

FY07 FY08 FY09 FY10 FY10^ FY11^

1,163 1,153

867

1,686

1,413

2,420 EBITDA (` Cr.)

Key highlights of FY11^

Revenue grew y-o-y by 17% to ` 17,102 Cr. (~USD 4 billion)

EBITDA surged by y-o-y 71% to ` 2,420 Cr. (~USD 538 million)

Net Profit grew to ` 752 Cr. (~USD 167 million) vis-à-vis ` 84 Cr. (~USD 19 million) in FY10

USD billion

1.8 2.5 3.2 3.4

USD Million

258 256 193 375

^ Pro-forma Results. Refer note 1 on slide 2

USD billion

~3 ~4

USD Million

314 538

10

Consolidated Mix – Nine Months FY2010-11

Financial Services

33%

Telecom22%

Fashion & Lifestyle

10%

IT-ITeS9%

Manufacturing 26%

Financial Services

23%

Telecom23%Fashion &

Lifestyle6%

IT-ITeS6%

Manufacturing 42%

Revenue

` 12,951 Cr.

Segmental EBIT

` 1,126 Cr.

11

3,478 3,9104,982

5,436 5,424

2,651 3,057

3,7683,044

3,437

FY07 FY08 FY09 FY10 FY11

Long Term

Investments

Fixed Assets &

Working Capital

Growth supported by strong Standalone Balance Sheet

3.9 3.8

5.8

4.13.2

0.78

0.62

0.87

0.74

0.58


Net Debt / EBITDA Net Debt / Equity

Standalone Capital Employed (` Cr.)

More than 60% of standalone capital employed is deployed in long term investments

Leveraging at comfortable level supported by strong cash flows generated by manufacturing businesses

Equity infusion of ` 1,000 Cr. through preferential allotment of 18.5 million warrants to promoters further strengthened

balance sheet.

Standalone Ratios

13

Aditya Birla Financial Services (ABFS)

To be a leader and role model in financial services sector with a broad based and integrated business

Power of One

One Virtual Company : Many real businesses

Lif

e I

nsu

ran

ce

As

se

t M

an

ag

em

en

t

NB

FC

Bro

kin

g

Wealt

h M

an

ag

em

en

t

Pri

vate

Eq

uit

y

Gen

era

l In

su

ran

ce A

dv

iso

ry

In line with its vision, ABFS is today a large non-bank financial services player

Managing AUM of ~USD 20 billion and revenue of over ~ USD 1.4 billion

Anchored by about 15,000 employees and trusted by ~ 5.5 million customers with value creation for clients at its core

Nationwide presence through over 1,700 points of presence and about 200,000 agents / channel partners

Leveraging synergies to be competitive and cost effective

14

1,735

3,223

4,414

5,293 5,511


Birla Sun Life Insurance (BSLI)

Robust growth in Total Premium Income Robust growth in AUM

(` Crore)

Covering over 2.4 million lives, BSLI ranks among the top 6 private life insurers in India

Strong distribution reach : A nation-wide presence with ~600 branches, ~150,000 direct selling agents, 5 bancassurance

partners and more than 225 corporate agents & brokers

Focus on superior and consistent fund performance : ~100% of AUM is ahead of set benchmarks

Growing size of in-force book & better expense management led to reduction of loss from ` 702 Cr. in FY09 to ` 435 Cr.

in FY10 and capital infusion from ` 725 Cr. to ` 450 Cr.

Posted net profit of ` 305 Cr. in FY11. No capital infusion was required in FY11

As on 31st Mar‟11, 13th month premium persistency is at ~83% and 25th month premium persistency is at ~77%

Focused on profitable growth : Embedded Value at ` 3,816 Cr. & VNB margin at 22.5% in FY10 (Refer Slide 34)

19,760

Mar'07 Mar'08 Mar'09 Mar'10 Mar'11

4,020

6,893

9,168

16,130

31%40% 36%

52%

Debt

Equity

50%

(` Crore)

15

Birla Sun Life Asset Management (BSAMC)

Robust growth in AUM (` Crore)15 years + journey of continued wealth creation

“Asset Management Co. of the Year-2009 & 2010” - The Asset, HK

Among top 5 players in India with market share of 9.1% in Q4FY11

Consistent rise in its share in industry‟s domestic equity avg. AUM

Building alternate assets :

Maiden Real Estate Onshore Fund collected ` 1,088 Cr.

Expanding International Presence :

Set up offices in Dubai & Singapore

Revenue grew to ` 366 Cr. & Net Profit to ` 85 Cr.

Aditya Birla Private Equity

Huge opportunity in the Private Equity space in India driven by (a) Long term growth potential of Indian Industry, (b)

Rising disposable income and growing participation of HNIs and (c) Mature & liquid financial markets and conducive

government policies for private investment

Maiden fund of Aditya Birla Private Equity closed recently at a size of ` 881 Cr. Invested in Anupam Industries, Bombay

Stock Exchange, Credit Analysis & Research Ltd., GEI Industrial systems.

Launched „Sunrise Fund‟ aiming at emerging sectors viz., Lifestyle, Lifeskills & Education, Lifecare & applied technologies

Strong Investment Performance by BSAMC : 2nd highest number of funds in 4 & 5 star categories across the industry

Mar'08 Mar'09 Mar'10 Mar'11 (Q4)

28,381

42,48951,293 52,383

10,030

6,159

13837 15,177

38,411

65,130

48,649

Equity &

Alternate

Assets1

Debt &

Liquid

67,560

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

16

Credit penetration in India at ~60% of GDP is lower compared to other emerging and developed economies

NBFCs have around 12% share in overall Credit Outstanding of ~ USD 850 billion (Mar‟10E) in India (Source : RBI)

Credit Outstanding is expected to grow at a CAGR of ~20% for next three years (Source : RBI)

Aditya Birla Finance is among the leading NBFCs in India

Leveraging Aditya Birla Group‟s ecosystem for SME funding

Closing book size more than doubled y-o-y to ~ ` 1,800 Cr. in FY11

Disbursed loans of ~ ` 5,000 Cr. towards IPO funding during FY11

Aditya Birla Money (Broking)

Aditya Birla Money is one of the leading retail broking companies in India with a nationwide branch network of ~220

branches and over 725 franchisees serving ~250,000 customers across more than 150 cities

Aditya Birla Money Mart (Wealth Management & Distribution)

Aditya Birla Money Mart is 3rd largest corporate distributor of mutual funds in India in terms of Assets under Advisory

at~ `139 billion as on 31st March 2011

Nationwide presence with 37 branches and ~14,000 channel partners serving ~ 250,000 customers

Aditya Birla Finance (NBFC)

17

FY06 FY07 FY08 FY09 FY10 9mFY11

2,965

4,366

6,720

10,131

12,398 11,240


1,096 1,504

2,376

3,051

3,621

2,757

EBITDA (` Cr.)

Idea Cellular (Telecom)

Revenue (` Cr.)

Ranks 3rd in terms of Pan India wireless revenue market share at 13.3%1 up from 12.7% one year ago

Ranks 2nd with 21%1 revenue market share in 9 service areas where it holds 900 MHz spectrum

Having a market cap of ~USD 5 billion, Idea serves a large customer base of ~90 million subscribers

Ranks among top 10 players globally with total Minutes of Use on network of more than 1 billion per day

Winner of 3G spectrum in 11 service areas which contribute 80% of Idea‟s existing 2G revenue

Idea holds 16% stake in the world‟s largest Indus Towers

Strong balance sheet & cash profit to support growth : Net Debt/EBITDA at 2.9 & Net Debt/Equity at 0.9

1Based on gross revenue for UAS & Mobile licenses only, for Dec‟10 quarter, as released by TRAI

Building sustainable competitiveness while maintaining growth momentum

Focused Area Specific Strategy : Emerging stronger out of the hyper-competition

0.514

0.4660.438

0.423 0.418

0.405

0.362 0.352 0.345 0.339

Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11

Avg. Revenue per minute (̀ ) Avg. Cost per minute (̀ )

Scale benefit driving cost efficiency

18


830

1,026 1,116

1,251

1,809

Madura Garments (Fashion & Lifestyle)

Revenue (` Cr.)


96

39

(158)

(4)

137

EBITDA (` Cr.)

Domestic apparel market is expected to grow from USD 26 billion in 2009 to USD 37 billion by 2014 (Source : Crisil)

Madura Garments is the largest premium Branded Apparel player in India : A complete lifestyle proposition

Leadership built by Strong Brands : Louis Philippe, Van Heusen, Allen Solly, Peter England, People. Strategic

distributorship tie-up with leading brand Esprit. Retailing international brands under „The Collective‟.

Retailing branded apparels and accessories through ~900 exclusive brand outlets spanning across ~1.3 million

square feet besides reaching customers through more than 1,250 departmental stores and multi brand outlets

Capitalising on brand leadership and enhancing channel productivity to achieve profitable growth

Turnaround in the bottom-line led by revenue growth and overheads reduction measures

19


84

45

4

105

183


1,109

1,677 1,777

1,530 1,692

Revenue (` Cr.)

Aditya Birla Minacs (IT-ITeS)

EBITDA (` Cr.)

Ranks among top 10 India BPO companies by revenue size

A global solution provider serving more than 100 clients through 33 centres in US, Canada, Europe, India & Philippines

Employees base of ~19,600 (NA : ~7300, APAC : ~12300) – Added about 4,000 headcounts in past one year

Augmenting non-voice capabilities : Acquired UK based Compass BPO, a leading F&A service provider in Mar‟10 and

US based Bureau of Collection Recovery (BCR), a leading accounts receivable management company, in Jun‟10

Total contract value (TCV) of more than USD 775 million sold and 21 new logos won during FY11

About 55% of TCV is on account of new business and balance is renewal business

Diversifying capabilities and building strong order book with a focus on the bottom-line

Turnaround in the bottom-line driven by sites consolidation & cost optimisation measures

20

Capturing sector growth and realising full potential


2,816 3,126

3,881 3,725

4,689

18% 19%

15%

20%

16%

24% 23%20%

27% 26%


OPM (%) ROACE (%)

Manufacturing businesses

Consistently generating superior operating margin and return on capital employed

Revenue (` Cr.)

Strong market positioning across manufacturing businesses

Second largest producer of Carbon Black in India

India‟s largest & world‟s fourth largest manufacturer of Insulators

Second largest producer and largest exporter of Viscose Filament Yarn in India

Among the best energy efficient Fertiliser plants in India

Largest Linen Yarn and Linen Fabric manufacturer in India


500 584 578

748 781

EBITDA (` Cr.)


1,836

2,252 2,386 2,255

2,715

Capital Employed (` Cr.)

21

Going Forward ...

Increasing market share while building a profitable book with a strong focus on distribution efficiency,

persistency, expense management and service in the Life Insurance business

Increasing market share profitably with a strong focus on distribution, high margin assets, service and

fund performance in the Asset Management business

Focusing to grow the book profitably while managing risk optimally in the NBFC business

Continue to increase revenue market share by capitalising on brand IDEA while leveraging 3G spectrum

to augment revenue stream and enrich customer experience in the Telecom business

Continue to leverage brand leadership and expanded retail space besides extending range of

merchandise for superior shopper experience in the Fashion & Lifestyle business

Augmenting capabilities, building strong order book, scaling up F&A and Collections verticals in the

IT-ITeS business

Margin enhancement across the Manufacturing businesses by maximising operating efficiency &

passing on rise in input & fuel costs

23

Consolidated Revenue - Segmental

( ` Crore)

2010-11 2009-10 2009-10

Published

Life Insurance 5,534 5,309 5,309

Other Financial Services * 579 416 416

Telecom (Nuvo's share) 2,852 2,453 3,331

Fashion & Lifestyle 1,809 1,251 1,251

IT-ITeS 1,692 1,530 1,530

Manufacturing 4,689 3,725 3,725

Carbon Black 1,588 1,161 1,161

Agri-business 1,244 1,022 1,022

Rayon 565 538 538

Insulators 518 428 428

Textiles 774 577 577

Inter-segment Elimination (53) (38) (38)

Consolidated Revenue 17,102 14,645 15,523

Pro-forma^

Full Year

Revenue

@

@ Idea is consolidated at 27.02% till 1st Mar‟10 and at 25.4% thereafter.

* Other Financial Services include Asset Management (consolidated at 50%), NBFC, Private Equity, Broking, Wealth Management & General Insurance Advisory.

^ Refer note 1 on slide 2

24

Consolidated EBIT - Segmental

( ` Crore)

2010-11 2009-10 2009-10

Published

Life Insurance 314 (425) (425)

Other Financial Services * 101 88 88

Telecom (Nuvo's share) 258 315 431

Fashion & Lifestyle 66 (81) (81)

IT-ITeS 116 42 42

Manufacturing 648 628 628

Carbon Black 221 227 227

Agri-business 157 136 136

Rayon 75 120 120

Insulators 114 98 98

Textiles 80 47 47

Segmental EBIT 1502 568 684

Pro-forma^

Full Year

EBIT

@

@ Idea is consolidated at 27.02% till 1st Mar‟10 and at 25.4% thereafter.

* Other Financial Services include Asset Management (consolidated at 50%), NBFC, Private Equity, Broking, Wealth Management & General Insurance Advisory.

Interest cost of NBFC business, being an operating expense as per AS 17, is deducted from Segmental EBIT


25

Consolidated Profit & Loss and Balance Sheet

( ` Crore)

* Aditya Birla Money & Aditya Birla Money Mart, subsidiaries of Aditya Birla Nuvo, had borne one time exceptional loss of ` 104 Cr.


2010-11 2009-10 2009-10

Published

Net income from operations 17,102 14,645 15,523

EBITDA 2,420 1,413 1,686

Less : NBFC Interest expenses 112 80 80

Less : Other Interest Expenses 424 537 582

EBDT 1,884 796 1,024

Less : Depreciation 774 717 866

Earnings before Tax 1,110 80 158

Less : Provision for Taxation (Net) 168 107 114

Less : Minority Interest 86 (111) (111)

Net Profit after minority interest before

exceptional gain / (loss) 856 84 155

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

Consolidated Net Profit 752 84 155

Pro-forma^

Full Year

Consolidated Profit & Loss Account Balance Sheet

Net Worth 6,448 5,475

Minority Interest 231 186

Total Debt 7,687 6,703

Deferred Tax Liabilities (Net) 248 241

Capital Employed 14,615 12,604

Policyholders' funds

(Incl. funds for future appropriation) 18,660 15,652

Total Liabilities 33,274 28,256

Net Block (Incl. Goodwill) 11,572 9,881

Net Working Capital 907 564

Long Term Investments 219 219

Life Insurance Investments 19,165 16,130

Cash Surplus & Current Investments 1,412 1,462

Book Value (`) 566 529

Net Debt / EBITDA (x) 2.4 3.1

Net Debt / Equity (x) 0.97 0.96

Consolidated

Mar-10Dec-10

26

Standalone Profit & Loss and Balance Sheet

( ` Crore)

March March

2011 2010

Net Worth 5,401 4,662

Total Debt 3,287 3,640

Deferred Tax Liabilities 174 178

Capital Employed 8,862 8,480

Net Block 1,858 1,815

Net Working Capital 1,434 1,049

Long Term Investments 5,424 5,436

Cash Surplus & Current Investments 146 180

Book Value (`) 476 453

Net Debt / EBITDA (x) 3.2 4.1

Net Debt / Equity (x) 0.58 0.74

Market Capitalisation - NSE 9,244 9,336

Balance SheetProfit & Loss Account

2010-11 2009-10

Net income from operations 6,445 4,827

EBITDA 970 835

Less : Interest Expenses 281 334

EBDT 689 500

Less : Depreciation 194 180

Earnings before Tax 495 320

Less : Provision for Tax (Net) 115 37

Net Profit 380 283

Full Year

Note 1 : Capex of ` 241 Cr. was spent during 2010-11

28

1000 400

45 15

Lower penetration of financial services

Siz

e in

mil

lio

n

PopulationBank

Account

Holders

Mutual

Fund

Holders

Dmat

Account

Holders

Financial Services Sector in India

The Indian Financial Services sector has yet to tap India‟s true potential

Faster growing economy

Continued to remain among the world‟s fastest growing

economies

GDP grew by 8% in FY‟09-10 & by estimated to grow by

8.6% in FY11

Large population & young demographics

Burgeoning Middle Class Segment

High rate of savings

Lower penetration

57% of savings lying in bank deposits

Over 50% of total revenue pool of Indian financial

services sector flows from non-banking space

Aditya Birla Financial Services is a large non-bank player

occupying significant position across verticals

Huge potential

market size

FY'98-99 FY'03-04 FY'06-07 FY'08-09

42% 39%48%

57%

2%2%

9%3%

11% 14%

18%20%

44% 45%

25% 20%

Source: RBI

Deployment of household financial savings

Others / Cash

Life Insurance

Shares and

Debentures

Deposits

Note : 1 USD = ` 45

$ 46 bn $ 84 bn $145 bn $ 166 bn

29

Aditya Birla Financial Services

* Aditya Birla Money & Aditya Birla Money Mart, subsidiaries of ABNL,, had borne one time exceptional loss of ` 104 Cr.

2010-11 2009-10

Revenue

Birla Sun Life Insurance 5,534 5,309

Birla Sun Life Asset Management 366 293

Aditya Birla Finance 165 73

Aditya Birla Money 114 113

Aditya Birla Money Mart 73 63

Aditya Birla Insurance Brokers 21 21

Others 22 (0)

Total Revenue 6,296 5,871

EBITDA 537 (231)

Net Profit / (Loss) before exceptional items 412 (359)

Exceptional Gain / (Loss)* (104) -

Net Profit / (Loss) 309 (359)

` Crore Full Year

30


-100

0

100

200

300

400

500

600

700

0 2 4 6 8 10 12 14 16

Pre

miu

m p

er

cap

ita

(U

SD

)

Premium / GDP (%)

Indian Life Insurance Industry

ICICI Prudential

20.5%SBI Life13.2%

HDFC Standard

11.9%Bajaj Allianz8.4%

Reliance Life8.2%

Birla Sun Life7.0%

Max New York6.2%

Others24.6%

Private Life Insurers market Share in terms of WNRP

(FY11)

256

533

659 639LIC

Private

Players

Private life insurers expanding market size through mass education

WNRP2 (` billion)

Source: Swiss Re, IRDA

2Weighted New Received Premium = 100% of regular first year premium + 10% of single premium

Industry moving towards balanced mix of linked & non-linked

Top 7 out of 22 private players contribute ~75% of private sector‟s new business

Birla Sun Life ranks 6th with 7% market share among private life insurers

Relatively lower insurance density offers ample opportunity for India1

1Bubble indicates size of life insurance premiums

India

China

US

UKJapan

33%45%

57%

75%51%

55%

67%55%

43%

25%

49% 45%

FY05 FY06 FY07 FY08 FY09 FY10

Non

Linked

Linked

5%

84%104%

HKTaiwan

South

Korea

Singapore

30%30%

44% 48%70%

70%

56% 52%

43%

57%

819

13%

31

Distribution reach strengthened across channels

Tie ups with 5 banks & over 225 corporate agents & brokers

Balanced channel sales mix-FY11 (Individual life)-Direct Selling

Agents (71%), Banca (16%), Corporate Agent & Brokers (13%)

137 339

600 632 600

57

115

166 170150


Branches (Nos.)

Direct Selling Agents ('000)

Pioneered ULIPs and Bancassurance in India

Leading player in product innovation

Focus on superior and consistent fund performance

All the funds consistently outperforming benchmarks

Achieved „zero%‟ claim outstanding ratio in FY‟10

A live example of „Customer First‟ approach

Salient Parentage Brand

DistributionCustomer

Focus &

Brand

Profitability

& Value

Creation

Scalable

Operating

Model

Key

Enablers

Birla Sun Life Insurance (BSLI)

Strengthening management team

and putting in place robust IT

platform to support growth

Outsourcing and decentralisation

Flexible organisation structure

„Best Employer‟ tag

Brand recall at 93%

Strong focus on persistency & expense

management

One of the best opex ratios among non-bank backed insurers

Rise in opex in FY09 due to distribution build up in past 2 years

27%

19% 19%23% 21%

27%24%

21%

15% 14% 13% 11% 10% 11% 9%7%0%

10%

20%

30%

40%

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

Opex / Total Premium (%)

Commission / Total Premium (%)

32Mar'07 Mar'08 Mar'09 Mar'10 Mar'11

120 30 30 110 60 110211

603725

450

-8 -36 -60 -78 -61 -61 -140

-445

-702

-435

305

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

Capital Infusion Net Profit / (Loss)

0

Birla Sun Life Insurance

BSLI‟s new business & market share among private players1

BSLI‟s Assets under Management grew multifold in 4 years

(` Crore)

Expanding retail base with policy growth

New policies issued („000) by BSLI

Achieved 2nd best new policy growth rate among top 7 private insurers in FY10

Strong support from promoters : Infused ` 2450 Cr. in BSLI

since inception till Mar‟10 to fund growth and solvency

An eye on profitable growth leading to reduction in net loss & capital infusion

1New product suite took time to gain acceptance after being completely revamped

in Jan‟10 impacting Q4FY10 sales

(` Crore)

883

1,965

2,821 2,960

2,080

5.3%6.6%

9.0% 8.4%7.0%


BSLI's New business Premium (` Crore)

Market share among Private Players in terms of WNRP (%)

44%

123%

5%

427

688

1,383

1,771

1,004


101%

61%

28%

4,020

6,893

9,168

16,130

31% 40% 36%

52%

Debt

Equity

50%

19,760

33

Birla Sun Life Insurance

2010-11 2009-10

New Business Premium

Individual Business 1,644 2,288

Group Business 436 672

New Business Premium (Gross) 2,080 2,960

Renewal Premium (Gross) 3,597 2,546

Premium Income (Gross) 5,677 5,506

Less : Reinsurance ceded & Service tax (166) (213)

Premium Income (Net) 5,511 5,293

Other Operating Income 23 16

Revenue 5,534 5,309

EBITDA 352 (378)


Capital 2,450 2,450

Assets under management 19,760 16,130

Full Year

` Crore

34

Created Value of New Business

34

Implied VNB margins of

22.5%* in FY10

(20.3%* in FY09)

* VNB as a % of first year regular premium and 10% of single premium as reported to IRDA

Note : Pl. refer to the basis of preparation and assumptions in annexure at slide no. 52

FY 2009-10 ` Crore

Embedded Value 3,816

Insurance Business Value 3,430

Adjusted Net Worth 386

Value of New Business 506

Total Capital invested till

Mar‟10 - ` 2,450 Cr.

35

3,060

+ 311

+ 506

+ 450 - 317

- 35 - 72 - 86 3,816

EV 31st

March 2009

Expected

Inforce

Contribution

Value of New

Business

Capital

Injection

Acquisition

Cost

Overrun

Maintenance

Overrun

(incl. change

in future

cost

overrun)

Change in

Risk

Discount

Rate

Other

Variances

EV 31st

March 2010

2,684

3,430

376 386

Expected Inforce Contribution

Value of New Business

Other Variances

Capital Infusion

AcquisitionCost Overrun

Maintenance Cost Overrun

(Including change in future cost overruns)

Change in Risk Discount Rate

Insurance Business Value as on 31st March 2009

Adjusted Net Worth as on 31st March 2009

Insurance Business Value as on 31st March 2010

Adjusted Net Worth as on 31st March 2010

35

As on 31st March 2010, Embedded Value at ` 3,816 Cr. grew y-o-y by 25%

Embedded Value

as on 31st March 2009

Embedded Value

as on 31st March 2010

Reconciliation of Embedded Value

( ` Crore)

36

Indian Mutual Fund Industry

Reliance14.5%

HDFC12.3%

ICICI10.5%

UTI9.6%

Birla Sun Life9.1%

Others44.0%

Market Share in terms of quarterly average AUM

(Q4FY11)

Industry AUM (average) more than doubled in past 3 years

(` billion)

Source: RBI, AMFI

Share of Mutual Fund in Household Savings in India is on a rise

Top 5 out of 40 AMCs contribute ~56% of Industry‟s average AUM

Birla Sun Life Asset Management Co. ranks 5th with 9.1% share

Relatively lower MF density offers ample opportunity for India

US Brazil UK South Korea

India

97

47

34 34

14

AUM as % of GDP


1.2%0.4%

3.8%

4.8%

7.7%

Mar'07 Mar'08 Mar'09 Mar'10

3550

5300

4932

7475

37

Created history by winning “Mutual Fund

House of the Year” award by CNBC TV18 -

Crisil, for the second year in a row

“Best Debt Fund House of the year” for the second

year in a row – Outlook Money, 2009 & 2010

“Asset Management Co. of the Year-2009 & 2010” - The

Asset, HK

Superior investment performance :

Recorded 2nd highest number of funds in 4 & 5 star

categories across the industry

Ranked among top 3 equity mobilisers in FY10 garnering

domestic equity net sales of over ` 2,000 Cr. compared to

industry‟s ~ ` 1,450 Cr.

Total avg. AUM at ` 67,560 Cr. as on 31st Mar‟11

Equity & alternate avg. AUM (incl. offshore) grew y-o-y by

12% in FY11 to ` 15,177 Cr.

Off shore equity AUM at ` 2,524 Cr.

Distribution

Investment

performance

Key

Enablers

Birla Sun Life Asset Management

Distribution reach strengthened across channels

3278

115 109 103

8

18

2932 34


Branches (Nos.)

Financial Advisors ('000)

Total Avg. AUM (Incl. offshore & PMS)

(` Crore)

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

Mar'08 Mar'09 Mar'10 Mar'11 (Q4)

28,381

42,48951,293 52,383

10,030

6,159

13837 15,177

38,411

65,130

48,649

Equity &

Alternate

Assets1

Debt &

Liquid

67,560

2010-11 2009-10

Revenue (Fee Income) 366 293

EBITDA 130 85

Net Profit 85 48

` Crore Full Year

Revenues

Revenues

38

NBFC : Aditya Birla Finance (erstwhile Birla Global Finance)

Lines of business : (a) Loan against securities, (b) IPO financing and (c) Corporate bills discounting

Highest rating of A1+ assigned by ICRA for short term debt in the NBFC business

In FY11, closing book size more than doubled y-o-y to ~ ` 1,800 Cr.

Received capital infusion of ` 225 Cr. in FY11 to support growth and is capitalised with a net worth of ~` 500 Cr.

Extended offerings to LC discounting, ESOP funding, retail LAS and margin funding

Key Enablers

Expanding presence across range of asset products

Leveraging Aditya Birla Group‟s ecosystem for SME funding

Maiden fund Aditya Birla Private Equity – Fund I closed at a size of ` 881 Cr.

Aditya Birla Nuvo will contribute twenty percent of the fund corpus over a period of three years

Fund proposes to target substantial minority stakes, while investing primarily in unlisted, mid-cap, high-growth, India-

centric companies and is sector-agnostic. - Invested in Anupam Industries, Bombay Stock Exchange, Credit Analysis &

Research Ltd. and GEI Industrial systems so far.

Launched „Sunrise Fund‟ aiming at emerging sectors viz., Lifestyle, Lifeskills & Education, Lifecare & applied technologies

Aditya Birla Private Equity

39

Wealth Management : Aditya Birla Money Mart (erstwhile Birla Sun Life Distribution)

Broking : Aditya Birla Money (erstwhile Apollo Sindhoori Capital Investments)

Lines of business : (a) Trading facility in equity and derivative segments, (b) trading facility in commodity segment

through a subsidiary, (c) depository participant services at major locations, (d) online bidding for IPOs and (e) distribution

of mutual funds

Nation-wide distribution network of ~220 own & over 725 franchisee branches serving ~ 250,000 customers across more

than 150 cities

Augmented research capabilities

Key Enablers : Scaling up commodity broking segment and growing customer acquisition engines

Lines of business : (a) Wealth management advisory services to HNIs, (b) sub-broker model to distribute mutual funds,

(c) investment advisory services to Corporate and (d) direct sales force based life insurance selling through subsidiary

3rd largest corporate distributor in terms of assets under advisory at ` 139 billion as on 31st Mar‟11

Nationwide presence with 37 branches and ~14,000 channel partners serving ~250,000 customers

Revenue share from broking and alternate assets rising

New products : Real Estate Advisory Services, WRAP etc.

Key Enablers : Diversifying product portfolio by increasing share of alternate assets and market-customer segmentation

40

Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Dec'10

4,76310,114 24,793

49,86066,187 70,208

1Incl. Spice & based on gross revenue for UAS & Mobile licenses only, for Dec‟10 quarter released by TRAI

Indian Telecom Industry

India is the fastest growing cellular market in the world


98.8

165.1 261.1

391.8

584.3

752.2

Now a pan India player with operations in all 22 service areas

(Source : TRAI)

Top 6 out of 15 cellular operators contribute ~93% of Industry‟s wireless revenue

30 4467

101124 1127.4

14.024.0

43.0

66.7

81.8


Revenue (` billion) Subscribers (million)

Idea Cellular

Idea ranks 3rd in terms of revenue market share at 13.3%1

2Spice results consolidated at 41.09% as JV since 16th Oct‟08 and as 100% subsidiary post

merger since 1st Mar‟10. Indus consolidated at 16% as JV.

2

Cell Sites: Capacity grew multifold in four years

Added 14 service areas in past four years

Robust growth in MOUs (billion minutes)


2146 86

165243 261

10.0%

11.7%12.6%

13.3%

Q4FY08 Q4FY09 Q4FY10 Q3FY11

41

Idea Cellular (Telecom)

Ranks 2nd with 21%1 revenue market share in 9 service areas

where it holds 900 MHz spectrum2 : Industry derives ~48% of its gross

revenue from these 9 out of total 22 service areas

Strong balance sheet to support future funding requirements

Net Debt to Equity stands at 0.9 & Net Debt to EBITDA at 2.9

Cash profit grew by 32% from ` 23.4 billion to ` 30.9 billion in FY‟10

Net profit grew to ` 9.5 bn even after absorbing competitive pressure

on realised rate per minute and launch of remaining seven circles.

Idea won 3G spectrum in 11 service areas which contribute to ~80% of

its existing revenue and ~50% of industry‟s all India revenue

Idea ranks 1st or 2nd in 7 out of these 11 services areas

Total payment for 3G at ` 57.69 billion is lowest among major operators

Capex guidance (2G + 3G) for FY11 at ` 30 billion.

Idea holds 16% in Indus Towers, a JV between Idea, Bharti & Vodafone

Indus is world‟s largest with over 100,000 towers

Strategy Going Forward : Leveraging competitive strength in 900 MHz

service areas and optimisation in 1800 MHz service areas to drive cost

efficiencies besides exploiting 3G spectrum to enrich customer experience

1Based on gross revenue for UAS & Mobile licenses only for Dec‟10 quarter, as released by TRAI

2900 MHz spectrum band provides capex/opex advantage over 1800 MHz

Robust growth in Net Profit (` billion)3

3Spice results consolidated at 41.09% as JV since 16th Oct‟08 and as 100% subsidiary post merger since 1st Mar‟10. Indus consolidated at 16% as JV.


2.1

5.0

10.4 8.8 9.5

6.2

Net profit grew in FY10 by 8% y-o-y amidst hyper competition

Robust growth in EBITDA (` billion)3


11.015.0

23.830.5 36.2

27.6


11 22 35

133 114 120

3343

65

8979

112

Net Worth

Total Debt

Strong Balance Sheet (Figures in ` billion)

EBITDA grew by 19% y-o-y in FY10

42

Successful migration from shirt to lifestyle proposition

Apparel Brands : Louis Philippe, Van Heusen, Allen Solly & Peter England

Store Brands : The Collective & PEOPLE

Strategic distributorship tie-up with leading brand Esprit

Apparel retail space grew multifold to 895 exclusive brand

outlets (EBOs) across ~1.3 million sq. ft.

Retail channel contributes ~45% of branded garments revenue

Expanded retail channel led to 50% y-o-y growth during FY11

Retail Channel achieved 30% like to like stores sales growth

Bottom-line improved considerably driven by robust sales growth

across the channels & brands and achieved savings in

working capital driven by cost rationalisation efforts

Key Enablers :

Capitalising on expanded retail space

Enhancing channel productivity and extending range of

merchandise for superior shopper experience


Madura Garments (Fashion & Lifestyle)

Retail Penetration

Revenue (` Cr.)

830

1,026 1,116

Contract

Exports

Branded

Garments

1,251

698 895

1.01.3

Mar'10 Mar'11

EBOs (Nos.) Retail Space (Million Sq. Ft.)

1,809

2010-11 2009-10

Revenue 1,809 1,251

EBITDA 137 (4)

EBIT 66 (81)

Capital Employed 605 549

` Crore

Full Year

43

Nurtured Transworks, BPO acquired in 2003, to grow multifold in 2 years. Acquired Minacs in August 2006, a leading

Canadian BPO company with annual turnover of USD 250 million & re-branded as Aditya Birla Minacs.

Acquired Compass & BCR in 2010 to augment customer lifecycle portfolio

Compass has ranked among top 15 upcoming F&A players (Source : Gartner)

BCR, a leading debt collection co., has domain expertise of over 25 years

Delivering solutions to over 100 clients through 35 centers in

US, Canada, Europe, India & Philippines

Supported by ~19,600 employees

Building strong order book with a focus on bottom-line

Posted Net profit at ` 74 Cr. in FY11 – a swing of ` 87 Cr. over last year

Supported by revenue growth, cost optimisation and savings in interest cost

Sold total contract value of more than USD 775 million in FY11

Won 21 new clients during FY11

Key Enablers

Continue to grow high margin non-voice / KPO segment

Leveraging Aditya Birla Group Ecosystem

Aditya Birla Minacs (IT-ITeS)


Revenue Mix – ITeS (FY11)

Mfg.55% TIME

33%BFSI10%Others

2%

Revenue – IT-ITeS (` Cr.)

1,109

1,677 1,777

North

America (NA)

Asia

Pacific (APAC)

1,530

Note : TIME – Telecom, Technology, Infrastructure, Media & Entertainment; BFSI – Banks, Financial Services & Insurance

1,692

2010-11 2009-10

Revenue 1692 1530

EBIT 116 42


Full Year ` Crore

44

Aditya Birla Group is 4th largest globally (Capacity : 900K MTPA)

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

Achieving synergies through marketing under brand “Birla Carbon” &

central procurement of feed stock (CBFS)

ABNL is 2nd largest domestic producer with ~38% production share in FY10

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

Value contribution by energy sales

Green field expansion by ~85K MTPA at Patalganga completed in May‟10 end to reach 314K MTPA

Power plants capacity expanded from ~40 MW in past one year to 73 MW

Further planning to expand capacity by 85K MTPA at Patalganga in second phase and by 85K MTPA in southern India

Sharp volatility in crude oil prices and slowdown in tyre demand impacted profitability across industry in FY‟09.

Turnaround in FY10 driven by lower CBFS cost and higher volumes.

Hi-Tech Carbon

25%

Usage of Carbon Black

Carbon black constitutes ~28% of tyre by weight

Replacement segment contributes 60-70% of overall tyre demand

739864

1,096 1,161

1,588181215 204

230275


Revenue (` Cr.) Sales ('000 MT)

132 153

50

253 258

18% 18%

5%

22%

16%


EBITDA (` Cr.) OPM(%)

487668 753

942

1,22126%

23%

3%

27%

20%


Capital Employed (` Cr.) ROACE (%)

Tyre65%

Rubber15%

Belts & Hoses10%

Printing Inks etc.

10%

45

Acute deficit of urea in India – Approx. 20-25% 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 “ Birla Shaktiman” is preferred choice of farmers

Also offering value adding variety – Neem coated “Krishi Dev”

A complete agri-solutions provider – Urea, Seeds, Pesticides

Posted significant growth in FY09 led by increased volumes,

higher subsidy arrears and IPP gain for higher capacity utilisation

Higher agri-input sales contributed to Profitability in FY11

Indo Gulf Fertilisers (Agri-business)

130102

228

155176

17%

13%

18%

15%14%



401

531587

300

496

29%

18%

38%

31%39%



785 787

1,2501,022

1,244

1044

870

1073 1106 1099


Revenue (` Cr.) Sales ('000 MT)

46

2nd largest producer in India with 39% domestic production share & largest exporter of VFY from India in FY10

Integrated facilities

Capacity : VFY - 17,520 TPA; Caustic soda – 250 TPD

Cost effective 34.5 MW captive power plant

VFY has a niche market globally

Premium is driven by quality and value added yarns

Largest Indian VFY exporter for consecutive fifth year with 47% share in VFY exports from India in FY‟10

Profitability in FY11 was impacted due to sharp rise in raw material prices.

Key Enabler : Increasing share of value added yarn. Caustic soda expansion by 125 TPD

Indian Rayon : VFY and Chlor-alkali

451454

437430

44021% 20% 20%

28%

17%



441 476537 538 565

17039 17923 16792 1661615592


Revenue (` Cr.) VFY Sales Volume (MT)

120 124 123155

109

27% 26%23%

29%

19%



47

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

Indian insulators market size is expected to grow multifold led by

75GW power generation capacity addition planned in XI-Five Year Plan

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

Capacity – 45,260 TPA at two plants

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

ABB, Areva, Siemens etc. are amongst major customers

Key Enabler : Increasing share of high rating insulators and yield enhancement to improve margins. Adding 2,000 TPA

through de-bottlenecking.

Aditya Birla Insulators

54

136123 116

135

22%

34%29% 27%

26%



186

240

264

294363

23%

58%

43%

35% 35%



241

399 425 428

518

22967

32304 3256137051

44281


Revenue (` Cr.) Sales Volumes (MT)

48

Domestic market leader in Linen segment

Branding & promoting linen fabric under “Linen Club”

Spinning & weaving capacities 15,084 spindles & 106 looms

One of the largest player in Wool segment in India

Worsted yarn capacity at 25,548 spindles

Wool combing capacity at 7 card machines

Key Enabler : Focusing on high margin retail segment under “Linen Club” brand

Jaya Shree Textiles

625600 573 577

774


Revenue (` Cr.)

67 6854

69103

11% 11%9%

12%13%



311359 345

281

196

19%15%

9%15%

34%



49

Annexure II : Shareholding Pattern & Market Cap

Trusted by 153,896 shareholders

Over 96% 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 IN / IRIG LX

2,409

6,246

9,992

13,265

4,227

9,3369,244

402748

10711396

445906 814

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

Market Cap (` Crores) Closing Share price (`)

Category

No. of No. of Shares Shareholding

Shareholders held (in million) (%)

Promoter & Promoter Group* 24 59.37 52.30%

Foreign Institutional Investors 186 19.79 17.44%

Institutional Investors 170 13.80 12.15%

Non-Institutional Investors 153,515 18.75 16.52%

GDRs - Public 1 1.80 1.58%

Total 153,896 113.51 100.00%

* Including 1.425 million GDRs

As on 31st Mar'11

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



50

Annexure III : House of power brands

A leading player in the Financial Services space

Market leader in the premium Branded Apparels segment

Leadership position in Manufacturing businesses generating strong cash flows

A leading player in the Telecom sector and a prominent player in the BPO space

Telecom IT-ITeS

Carbon Black

Life Insurance Asset Management NBFC General Insurance

AdvisoryPrivate Equity

Agri-business Insulators Rayon Textiles

Broking, wealth

management & distribution

51

Annexure IV : Management Team

Board of Directors

Mr. Kumar Mangalam Birla, Chairman

Mrs. Rajashree Birla

Mr. B. L. Shah

Mr. P. Murari (Independent)

Mr. B. R. Gupta (Independent)

Ms. Tarjani Vakil (Independent)

Mr. S. C. Bhargava (Independent)

Mr. G. P. Gupta (Independent)

Mr. Tapasendra Chattopadhyay (Independent)

Dr. Rakesh Jain, Managing Director

Mr. Pranab Barua, Whole Time Director

Business Head/Director Business

Dr. Rakesh Jain Agri-business

Insulators

IT-ITeS

Mr. Ajay Srinivasan Financial Services

Mr. Pranab Barua Fashion & Lifestyle

and Textiles

Mr. Lalit Naik VFY

Dr. Santrupt Misra Carbon Black

Mr. Himanshu Kapania Telecom

Whole Time Director and Chief Financial Officer

Mr. Sushil Agarwal

52•52

EV & VNB – Key Assumptions

Annexure V : EV & VNB of Birla Sun Life Insurance

Operating Assumptions

The key economic and operating assumptions used in preparing the EV and VNB results as shown on slide 34 of this

presentation are:

Economic Assumptions

Asset Class Expected Returns

Cash/Money Market Instruments 6.50%

Government Bonds 7.25%

Corporate Bonds 8.25%

Equities 12.25%

Other Parameters Assumption

Tax Rate 14.16%

Risk Discount Rate (RDR) 12.50%

The RDR has been increased from 12% last year.

Using an RDR of 12% would increase the Embedded Value of

the company by 2.6% and the VNB by 5.7%.

Using an RDR of 13% would decrease the Embedded Value of

the company by 2.4% and the VNB by 5.4%.

Operating Assumptions

The demographic and business assumptions such as

morbidity, mortality, premium persistency, policy persistency

reflect our best estimate view of future experience in light of

actual past experience.

The expense assumptions are based on our latest approved

5-year business plan.

As per the business plan, the expense allowances are

projected to be 95% of the Operating Expenses in FY 2012-13

from the current position of 71% in FY 2009-10. This could be

favourably impacted by a stronger shift to long-term business

and / or better persistency.

Regulatory environment

The projections assume no significant changes in future regulatory environment. Any impact, positive or negative, resulting from

changes in regulatory environment (e.g. New ULIP Guidelines effective from 1st September 2010) have not been considered.

53

Embedded Value (EV) – EV is the aggregate of:

Insurance Business Value (IBV), which is the present value of after-tax statutory profits expected to emerge in

future from in-force business at the valuation date, discounted at the risk discount rate, less the cost of holding

required capital to support the in-force business.

Adjusted Net Worth (ANW), which is the market value of assets in excess of statutory reserves.

Value of New Business (VNB): VNB is defined as the present value, from the point of sale, of after-tax statutory

profits expected to emerge in future from the new business written in the period, discounted at the risk discount rate,

less the cost of holding required capital to support the new business.

Basis of preparation :

The EV and VNB are computed based on a traditional EV methodology.

Group business is not considered in arriving at the results.

The EV includes the value of tax losses carried forward as at the valuation date.

An allowance has been made in the IBV for the expected maintenance expense overruns. No allowance has been

made in the VNB for the acquisition expense overrun arising in the period.

EV & VNB – Definitions and Basis of Preparation

In the EV and VNB, the cost of capital is calculated as the nominal value of the required capital less the present value, at

the risk discount rate, of the projected after-tax investment earnings and future releases of the required capital.

The methodology, assumptions and results for individual business have been reviewed by Towers Watson. The

conclusions of Towers Watson „s review are shown in the Appendix.

Annexure V : EV & VNB of Birla Sun Life Insurance

54

Towers Watson has reviewed the methodology and assumptions used to determine the EV and VNB as at 31st March 2010 for the

individual business of Birla Sun Life Insurance Company Limited (“BSLI”).

Towers Watson has concluded that:

The methodology used is consistent with recent industry practice in India as regards the calculation and reporting of traditional

embedded values on a deterministic basis;

The economic assumptions used are internally consistent and have been set with regard to current economic conditions;

The operating assumptions, taken in aggregate, have been set with appropriate regard to past, current and expected future

experience, noting the exception of BSLI‟s approach to setting the acquisition and maintenance expense assumptions, and

resultant cost overrun shown in various parts of this presentation including the Key Assumptions section, and noting the

difficulty in setting ultimate persistency assumptions, where management‟s expectations have been used because of the limited

experience data with which to determine these assumptions; and

Allowance for risk has been made through the use of a single risk discount rate and an explicit assumption for the level and

cost of holding solvency capital. Whilst this is in line with recent industry practice as regards traditional actuarial embedded

value calculations, this may not correspond to a capital markets valuation of the risks (a so called “market consistent

valuation”).

Towers Watson has also performed limited high-level checks on the results of the calculations and has confirmed that any issues

discovered do not have a material impact on the disclosed embedded value and value of new business. Towers Watson has not,

however, performed detailed checks on the models and processes involved. Please note that the scope of our work did not

include a review of the Reconciliation of Embedded Value shown in this presentation.

In arriving at these conclusions, Towers Watson has relied on data and information provided by BSLI. This opinion is made solely

to BSLI in accordance with the terms of Towers Watson‟s engagement letter. To the fullest extent permitted by applicable law,

Towers Watson does not accept or assume any responsibility, duty of care or liability to anyone other than BSLI for or in

connection with its review work, the opinions it has formed, or for any statement set forth in this opinion.54

Appendix - Towers Watson Opinion

55

Disclaimer

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.

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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.

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