ADITYA BIRLA NUVO LIMITED A PREMIUM CONGLOMERATE
CORPORATE PRESENTATION
FEBRUARY 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 = ₹ 60
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 & 150 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 AUM) 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
Aditya Birla Financial Services
Divisions
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
ABNL Vision – Mission
6
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
New Ventures
ABNL - A Premium Conglomerate
6
SOLAR
Life Insurance$ (74%)
Aditya Birla Financial Services (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 $Represents Joint ventures #Listed
Note 1: Percentage figures indicated above represent ABNL’s Shareholding in its subsidiaries/JV’s
Note 2 : Sun Life Agreed to increase its stake in life insurance joint venture from current 26% to
49% at an investment of ` 1,664 crore, subject to requisite approvals .On completion of transaction,
ABNL will continue to hold controlling stake at 51%.
Aditya Birla Health Insurance Co. Ltd. (Proposed 51% JV)
Online Money Management (100%)^
Aditya Birla Renewables Ltd.
(51%)$
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 with MMI Holdings to foray in health insurance business in India ABNL partners with Abraaj Group to invest in the Solar Power Business in India.
Added New Superfine Yarn capacity in Rayon
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
Aditya Birla Financial Services
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 : 1 USD = ₹ 60 8
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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
• Regulatory approval from IRDAI is awaited.
Strategic Action
• Sun Life Financial, Canada to raise its stake in Birla Sun Life Insurance (BSLI) from 26% to 49%.
• ABNL will sell 437 million shares in BSLI, constituting its 23% stake, for a sum of ₹ 1,664 Crore.
• The transaction is expected to complete within next 2-3 months, subject to the requisite statutory & regulatory approvals in India and Canada
• After the transaction, ABNL will continue to hold controlling stake in BSLI at 51%.
Industry Positioning
Among the top 5 fund managers
in India (excl .LIC)
AUM USD 30.9 billion1
(₹ 185,515 Crore) Dec’15 - 26%↑ y-o-y
Diversified Portfolio
Having 12 lines of businesses
NBFC Lending Book
USD 3.9 billion2
(₹ 23,442 Crore) Dec’15 - 51%↑ y-o-y
Revenue – FY15 USD 1.3 billion
(₹ 7,926 Crore) 19%↑ y-o-y
EBT – FY15 USD 141 million
(₹ 849 Crore) 17%↑ y-o-y
Aditya Birla Financial Services
Strong ROACE –9MFY16 (annualised)
JayaShree 46% p.a.
Agri 15% p.a.
Rayon 29% p.a.
Insulators 22% p.a.
Divisions 23% 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, Sep’15)
Note 2 : Based on gross revenue for UAS & Mobile licenses only for Q2 FY16, as released by TRAI Note 3 : Q2 FY16 over Q2 FY15 9
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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 : 3.3x (Standalone)
(as on 31st Dec’15)
Revenue - FY15 USD 5.3 billion
(₹ 31,527 Crore) 19%↑ y-o-y
Outperforming Industry
Revenue share grew y-o-y from 17.2% to 18.5%2
Incremental RMS @ 37.7%3
Cash profit – FY15 (post tax)
USD 1.4 billion (₹ 8,482 Crore)
32%↑ y-o-y
EBITDA – FY15 USD 1.9 billion
(₹ 11,281 Crore ) 32%↑ y-o-y
Industry Positioning India’s largest Linen and VFY
player
Leading manufacturer of Urea & Insulators
Free Cash Flow – FY15 (pre-tax)
USD 52 million (` 314 Crore)
36%↑y-o-y
EBITDA – FY15 USD 102 million
(` 615 Crore) 11%↑ y-o-y
Outlook Expanding linen yarn capacity
to tap sector growth.
Long term anti-dumping duty to benefit Insulators sector.
Gas pooling policy to benefit urea sector.
Revenue - FY15 USD 901 million (` 5,405 Crore)
9%↑ y-o-y
5.8
3.7
3.0
3.4
0.87 0.68 0.42 0.34
Mar'09 Mar'12 Mar'15 Dec'15
Net Debt/annualised EBITDA Net Debt/Equity
Standalone Ratios Standalone Net Debt
306 676
1,193 929
3,591
3,854 3,584
2,980
Mar'09 Mar'12 Mar'15 Dec'15
O/s
Fertilisers
Subsidy
A PLATFORM TO DRIVE SYNERGY OF RESOURCES
(₹ Crore)
10
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
Standalone balance sheet has been the growth engine for ABNL & a platform to drive synergy of capital resource
Invested ~USD 1 billion to fund the growth capital requirements of its businesses over past six years
Led by realisation of subsidy in Agri business and transfer of ₹439 Cr. of net debt pursuant to de-merger of Madura into PFRL, Net debt reduced by ~₹ 600 Cr. during past nine months
In FY 2015-16, standalone balance sheet will support following investment and capex plan:
Standalone Capex of ₹150Cr.
Investment of ₹800 Crore in the Financial Services businesses
Proceeds of ` 1,664 Cr. from sale of 23% stake in BSLI will strengthen the balance sheet.
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
Madura Fashion & Lifestyle stands transferred to & vested in Pantaloons Fashion & Retail Ltd. (PFRL) on scheme becoming effective on 9th Jan’16.
PFRL renamed as Aditya Birla Fashion & Retail Ltd. (ABFRL) w.e.f. 12th Jan’16.
ABFRL allotted 26 shares to ABNL’s shareholders for every 5 shares held in ABNL.
New shares were listed & permitted for trading on BSE & NSE w.e.f. 4th Feb’16.
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 …
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ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
… AND DRIVING STRONG EARNINGS & VALUE GROWTH
Branded Apparels Financials Services, Telecom & Divisions
4,227
10,723
21,654
28,205
FY09 FY12 FY15 Dec-15
Market Capitalisation (₹ Crore)
-436
890
1,416
FY09 FY12 FY15
Consolidated Net Profit (₹ Crore)
867
3,247
5,798
FY09 FY12 FY15
14,331
21,840
26,516
FY09 FY12 FY15
Consolidated Revenue (₹ Crore)
Consolidated EBITDA (₹ Crore)
CAGR 11% CAGR 37%
CAGR 56% (FY10-FY15)
CAGR 32%
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ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Bira Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
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 Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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 193 villages, inclusive of 14 model villages. Our CSR work is in proximity to our 6 manufacturing units across 4 states of the country. CSR spends at the Group level exceed the 2% norm.
Some of the initiatives taken
14
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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 3,000families and we gave them 44,060 garments
15
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
CONSOLIDATED EARNINGS MIX – FY15
Note 1: Revenue and EBIT Mix are excluding IT-ITeS business which was divested w.e.f. 9th May 2014 Note 2: Madura Fashion (a division of ABNL) and Madura Lifestyle (a branded apparel retailing division of Madura Garments Lifestyle retail Co.Ltd. a subsidiary of ABNL) were de-merged into Pantaloons Fashion & Retail Ltd. a listed subsidiary of ABNL, w.e.f from 1st April 2015. Refer Slide 41 for transaction Structure.
Divisions
21%
Financial Services
30%
Telecom
28%
Fashion & Lifestyle2
21%
Divisions
17% Financial Services
28%
Telecom
46%
Fashion & Lifestyle2
9%
Segment Revenue Segment EBIT
26,2341
2,8741
(₹ Crore) (₹ Crore)
16
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
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 1,20,000 agents / channel partners
6,304 6,542 6,378 6,637 7,926
FY11 FY12 FY13 FY14 FY 15
Revenue (₹ C ro re )
368
600 761 727
849
FY11 FY12 FY13 FY14 FY15
Earnings Before Tax (₹ C ro re )
Ranks among top 5 fund managers in India (excl. LIC)
AUM at ₹185,515 Cr. (26%↑ y-o-y)
(Dec’ 15)
Anchored by >11,750 employees &
trusted by > 7 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 ₹ 23,442 Cr. (51%↑ y-o-y) (Dec’ 15)
25,600 43,104
88,309 88,371 107,539
96,762
121,836
FY11 FY12 FY13 FY14 FY15
ASSET UNDER MANAGEMENT Others
Equity 1,64,940
1,22,362
CAGR 17%
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
ADITYA BIRLA FINANCE (ABFL) - NBFC
Established in 1991, one of India’s most reputed NBFC’s
Net worth grew 13x from ₹ 235 Crore in Mar’10 to ₹ 3,051 Crore
in Dec’15
Gross NPA - 0.82% Net NPA - 0.16%
(9M FY16)
Lending book reached
USD 3.7 billion mark (44%↑ y-o-y) (Dec’ 15)
ROE – 15.1% ROA – 2.09%
(9M 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 ~₹ 1,900 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 1,850
3,425
8,000
11,550
17,564
22,210
Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec' 15
Lending Book (₹ Crore)
CAGR 69%
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
Aditya Birla Financial Services
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS
39.0
34.6 36.0
30.5 29.3
24.1
FY11 FY12 FY13 FY14 FY15 9MFY16
Opex to Net interest (%)
196 348 715 1201 1776 1746
37 56
100
166
271 289
FY11 FY12 FY13 FY14 FY15 9mFY16
Revenue & Net Profit (₹ Crore)
Revenue Net Profit
Mortgages 26%
Infra Finance
27%
Corporate Finance
25%
Capital Market 19%
Others 3%
Segment wise Loan book (Dec’ 15)
19
ABNL Vision –Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
235 497
628
1079
1769
2585
3051
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec'15
Net Worth (₹ Crore)
CAGR 56%
1.16% 1.23% 1.29%
0.90% 0.82% 0.84% 0.83%
0.58%
0.32% 0.16%
FY12 FY13 FY14 FY15 9MFY16
Gross NPA Net NPA
10.2% 11.4%
14.3% 13.1%
14.6% 15.1%
2.11% 2.19% 1.92% 1.85% 2.00% 2.09%
FY11 FY12 FY13 FY14 FY15 9MFY16
ROE ROA
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
13.8%
8.4%
5.4%
1.9%
0.6%
1.92%
13.5%
8.3%
5.1%
1.5%
0.8%
1.85%
13.1%
8.2%
5.0%
1.5%
0.5%
2.0%
Spread Analysis FY 12-13 FY 13-14 FY 14-15
Capital Adequacy ratio at 15.8% (Tier I : 13.0% & Tier II : 2.8%)
Total borrowings at ₹18,803 Crore
Leverage at ~6x
Out of total borrowings 66% is long term Well placed ALM strategy
Aditya Birla Housing Finance (ABHFL)
Footprint expanded to 26 markets in Dec’15. Setting up presence in
10 more markets by Mar’16
Net worth at ₹200 Cr. (as on Dec’15)
Commenced operations in Oct’14
Lending book as on Dec’15 is ₹ 1,232 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 Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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 $5 billion (as on Dec’15)
No 1 in group business with 21.8% market share2 (9mFY16)
Among top 5 private life insurers in terms of AUM
FY 15 EV: ₹3260 Crore
VNB Margin : 14.1%
India’s Insurable population to touch 75 crore by 2020.
Ranked 10th among the 147 countries in the life insurance business.
Life insurance sector to increase at a CAGR of 12-15% over next five years
Total Market size of India’s Insurance sector projected to touch US$ 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, over 60 thousand direct selling agents and more than 150 corporate
agents & brokers.
Balanced sales mix: In FY15, non-ULIP contributed to 62% of individual new business, out of which share of PAR products was 42%
Ranks among top 5 private players in India with new business1 market share of 6.9% during nine months ended 31st Dec’15
Sun Life to raise its stake in BSLI from 26% to 49% for an investment of ` 1,664 Cr. valuing BSLI at ` 7,235 Cr., subject to requisite approvals
* 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 Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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) 4108 4015
3687
3225 3260
FY11 FY12 FY13 FY14 FY15
Embedded Value (₹ Crore)
3,597 3,959 3,380 3,136 3,295
2,080 1,926
1,837 1,697 1,938
FY 11 FY12 FY13 FY14 FY15
Total Premium Income (₹ C ro re )
New business Renewal
FY11 FY12 FY13 FY14 FY15 DEC '15
GROWTH IN AUM (₹ Cro re )
Equity AUM Debt & Liquid
5534 5691
5037 4702
5267
3,667
305 461 542 371 285 103
FY11 FY12 FY13 FY14 FY15 9mFY16
Revenue & PAT (₹ Crore)
Revenue PAT
5,677 5,885
5,216 4,833
5,233
19,760 21,110 22,929
24,775
30,185 30,291
53% 55% 59% 58% 62% 67%
47% 45% 41% 42% 38% 33%
27.5%
22.8%
16.6% 16.2% 14.1%
FY11 FY12 FY13 FY14 FY15
VNB Margin %
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
10631 10860 11550 25904 32693
50543 66284
77586
94128 104,152
4908
6307 7294
13602
17129
Q4FY12 Q4FY13 Q4FY14 Q4FY15 Q3FY16
Growth in AUM Domestic Equity Domestic Fixed Income
Offshore & Alternate assets
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
4th Largest AMC In India
AUM of
$25.7 billion (as on Dec’15)
109 branches across country
#4 in Equity AAUM Top 2 in Fixed Income AAUM
Asset Management House of the year award by Money Today FPCIL 2015
9.09% 9.20% 9.45%
9.85% 10.09% 10.19%
5.45% 5.27% 5.26% 5.78%
6.92%
7.39%
FY11 FY12 FY13 FY14 FY15 Q3FY16
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,
366
315
405
502
596 584
85 59 73 95
123 163
FY11 FY12 FY13 FY14 FY15 9mFY16'
Revenue & PAT (₹ Crore)
Revenue PAT
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
66082
83451 96429
133634
153974 CAGR 25%
24
Aditya Birla Insurance Brokers (ABIBL) (General insurance advisory)
INSURANCE ADVISORY, PRIVATE EQUITY, HEALTH INSURANCE
₹ Crore ABCAP
2013-14 2014-15
Revenue 23 21
Earning Before Tax 9 6
Net Profit
6 4
PE Funds under management (net) at ₹1,121 Cr.
Both Fund 1 & Sunrise fund have invested their net deployable corpus as on 31stDec15.
Planning to launch 3rd fund soon.
Aditya Birla
Capital Advisors
(ABCAP)
Leading General Insurance advisory Player
In FY15, ABIBL’s premium placement increased y-o-y by 26% to ₹ 1,132 Cr. while
industry premium grew by 9%
Consistently outperforming industry and gaining market share
₹ Crore ABIBL
2013-14 2014-15
Revenue 82 73
Earning Before Tax 21 27
Net Profit 14 18
Health
Insurance
0.43% 0.50%
0.93% 1.16%
1.33%
1.76%
FY11 FY12 FY13 FY14 FY15 9MFY16
ABIBL Market share
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot Entered into JV 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 Ltd ., currently a 100% Subsidiary of ABNL, is proposed to be a 51:49 joint venture with MMI Holdings Ltd.
25
BROKING, WEALTH MANAGEMENT & ONLINE MONEY MANAGEMENT
Online Money Management
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 2.3 million registered users who are managing more than ₹18,750 Cr. through MyUniverse
IFC has become strategic financial investor in My Universe
MyUniverse is the 7th largest SIP distributor by numbers in India with 3.4% market share in Dec’15
₹ Crore ABMM
2013-14 2014-15
Revenue 66 86
Earning Before Tax (6) 6
Net Profit/(Loss)
(6) 5
₹ Crore ABML
2013-14 2014-15
Revenue 75 119
Earning Before Tax (12) 6
Net Profit/(Loss) (12) 6
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 company..
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.
Assets under Advisory at ₹8,118 Cr. (Dec’15)
Equity assets under advisory at ₹2,299 Cr (36%↑ y-o-y)
Wealth Management
Aditya Birla Money Mart
(ABMM)
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
ABFS : FY2014-15 PERFORMANCE
Revenue
FY14 FY15 ∆% Company
EBT
FY14 FY15 ∆% Remarks on profitability
1,201 1,776 48% ABFL 251 411 63% Expanded lending book (52%↑ y-o-y)
4,702 5,267 12%
BSLI 371 285 23% Lower new business sales and in-force book
502 596 19% BSAMC 140 182 29% Growth in total AUM (39%↑ y-o-y)
82 73 11% ABIBL 21 27 26% Higher premium placement (26%↑ y-o-y)
75 119 58% ABML (12) 6 n.a. Higher average daily brokerage (67%↑ y-o-y)
66 86 30% ABMM (6) 6 n.a. Increase in business volumes
9 8 Others (net of elim.) (39) (67) Scaling up MyUniverse
6,637 7,926 19% Total 727 849 17%
Earnings before Tax at ₹ 849 Cr. (17%↑ y-o-y) Revenue at ₹ 7,926 Cr. (19%↑ y-o-y)
₹ Crore
26
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
Source: (1) As of Nov 30, 2015 based on TRAI report (2) As of June 2015, TRAI performance Indicator Report (3) Q2FY16 over Q2FY15 (4) TRAI revenue for Q2FY16 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 mobile data traffic growth – (76% y-o-y growth for Idea Q3FY16 vs Q3FY15) Incremental RMS growth @ 37.7%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 years5 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 its 87% of revenue, Idea is competitively well placed to capture the data opportunity Idea has recently signed an agreement with Videocon Telecommunications Limited for transfer of ‘Right to Use’ 5 MHz contiguous 1800 MHz spectrum for Idea’s leadership service areas of Gujarat and UPW. Capex guidance for FY16 (excl. spectrum payouts) stands at ` 75 billion on account of accelerated 4G rollout Strong balance sheet and avg. quarterly cash profit generation of ` 2,500 Cr. to support balance sheet and growth plans
15438
19489 22407
26432
31527
26473
FY 11 FY 12 FY 13 FY 14 FY 15 9mFY16
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
No.6 mobile Operator in the World with 182 million
active subscribers
No. 3 mobile Operator in India with 18.5% RMS
4
Strong Balance sheet Net Debt to EBITDA : 3.3x
(Standalone as on 31st Dec’15)
Pan India Pure Play Wireless Operator – (Voice + Data)
(2G+3G*+4G**)
(5) Q2FY16 over Q2FY13
*3G in 21 service areas including 8 intra-Circle Roaming arrangements.
**4G in 8 service areas with scheduled launch in 2 more by Mar’16 27
CAGR 20%
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Divisions
New Ventures
Annexure
ABG Snapshot
Telecom
300 mn
14.0 14.3 15.8
17.2 18.5
Q2FY12 Q2FY13 Q2FY14 Q2FY15 Q2FY16
Revenue Market Share (%)
IDEA : FINANCIALS HIGHLIGHTS
114 123 131 143 165
230 255
79
121 133 140
206
269
393
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec'15
Strong Balance Sheet (Figures in ₹ billion)
Net Worth Net Debt
86
165
243
363
453
532 588
683
584
24 43
64
90
113 122
136
158 172
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 9mFY16
Robust growth in Subscribers & MOUs
Robust growth in MOUs (billion minutes)
Subscribers
52 91 126 145
31
26.9
26.9 22.3
Q3FY13 Q3FY14 Q3FY15 Q3FY16
Improving Data ARPU
Data ARPU(INR) ARMB(paisa)
470 MB
167 MB
309 MB
653 MB
Usages per subs
Incremental
RMS 37.7%
34.1 40.3
49.8
70.4
86.2
74.3
FY11 FY12 FY13 FY14 FY15 9mFY16
Cash Profit (₹ Crore)
39.1 50.85
60.71
85.19
112.81
96.01
9 7.2 10.1 19.7
31.9 25.04
FY11 FY12 FY13 FY14 FY15 9mFY16
EBITDA Net Profit
CAGR 30%
(₹ billion)
CAGR 26%
28
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
Business Market Position Opportunity & Outlook Strong ROACE%
(9M 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 46% 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
15% 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
29% 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 (FY15) at ₹ 5,405 Cr. (9%↑ y-o-y) EBITDA (FY15) at ₹ 615 Cr. (11%↑ y-o-y)
ROACE improved from 14% p.a. in FY14 to 16% p.a. in FY15 to 23% p.a. in 9MFY16
29
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
New Ventures
Annexure
ABG Snapshot
Divisions
774 1,046 1,144
1,300 1,435
FY 11 FY 12 FY 13 FY 14 FY 15
Revenue (₹ Crore)
CAGR 17%
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.
99
141 154 172 175
FY 11 FY 12 FY 13 FY 14 FY 15
EBITDA (₹ Crore)
39%
61% 53% 47%
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
198 88 179 317 237
32%
82%
97%
57% 53%
FY 11 FY 12 FY 13 FY 14 FY 15
Capital Employed (₹ Cr.) ROACE (%)
CAGR 15%
30
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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 124 EBOs and 3,500+ MBOs Operating at a sound ROACE of 46% p.a. (9MFY16)
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”
Offerings :
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 ₹ 2,042 Cr. and EBITDA at ₹188 Cr. (13%↑y-o-y) during 9mFY16. Targeting 100% capacity utilization in FY16 led by gas pooling policy.Led by realisation of subsidy, capital employed reduced to ₹ 1,250 Cr. in Dec’15 and ROACE improved to 15% p.a. in 9mFY16.
1,244
2,107
2,924
2,313 2,558
FY11 FY12 FY13 FY14 FY15
Revenue (₹ crore)
176 211 197
77
148
FY11 FY12 FY13 FY14 FY15
EBITDA (₹ crore)
496
984
1,854 1,616 1,641
39%
26%
12%
3% 7%
FY11 FY12 FY13 FY14 FY15
Capital Employed (₹ Cr.) ROACE (%)
1st company to introduce the principles
of Six Sigma in the agricultural fields
Stronger farmer connect & strategically located in the heartland of Indo-Gangetic plains
31
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
New Ventures
Annexure
ABG Snapshot
Divisions
81%
19%
Revenue Mix
VFY
Chemicals FY15
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
565
680 777
860 865
FY11 FY12 FY13 FY14 FY15
Revenue (₹ crore)
110 128
189
222 197
FY11 FY12 FY13 FY14 FY15
EBIDTA (₹ crore)
440 515
681 759 757
17% 19%
26% 24%
21%
FY11 FY12 FY13 FY14 FY15
Capital Employed (₹ Cr.) ROACE (%)
The Largest manufacturers and Exporter of VFY in India
43% VFY production share & 55% share in VFY exports in FY15
Integrated facilities with 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 ₹684 Cr. & EBITDA at ₹190 Cr. (25%↑y-o-y) in 9mFY16 led by higher volumes & improved realisation in both VFY & Caustic Segments ROACE improved to 29% p.a in 9M FY16
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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 ₹ 416 cr. (8%↑Y-o-Y) in line with volume growth while EBITDA rose by 28% to ₹ 84 Cr. during 9M FY16. ROACE improved to 22% p.a. in 9M FY16
Earnings:
518 468 454
505 548
FY11 FY12 FY13 FY14 FY15
Revenue (₹ Crore) 134
67 61
83 95
FY11 FY12 FY13 FY14 FY15
EBITDA (₹ Crore)
362 375 395 430 455
34%
12% 10% 15% 17%
FY11 FY12 FY13 FY14 FY15
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 Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
Annexure
ABG Snapshot
Solar Power : Aditya Birla Renewables Limited, 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 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 Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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. will be 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 December 2015
No . of Shareholders
No. of Shares held (in million)
Shareholding (%)
Promoter & Promoter Group 19 74.44 57.18%
Foreign Institutional Investors 369 20.84 16.01%
Domestic Institutional Investors 254 15.92 12.23%
Non-Institutional Investors 1,30,737 18.98 14.58%
Total 1,31,379 130.19 100.00%
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. 2.0
India Opportunities Growth Fund Ltd. 1.8
HSBC Global Investment Funds 1.4
Franklin Templeton Investment funds 1.1
Tata Asset Management Ltd. 1.0
Franklin Templeton Asset Management (India) Pvt. Ltd. 0.9
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 28,214
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 31st Dec'15
906 814 945 976 1091
1664
2167
ABNL Share Price (₹) Market Cap (₹ Cr.)
35
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
ABG Snapshot
Annexure
CONSOLIDATED RESULTS – SEGMENTAL (FY14 & FY15)
Consolidated Results Revenue EBIT 2013-14 (PY) 2014-15 (CY) 2013-14 (PY) 2014-15 (CY)
6,637
4,702
1,946
(11)
6,669
4,759
2,898
4,979
1,300
2,313
860
505
(50)
25,892
7,926
5,267
2,666
(7)
7,467
5,450
283
5,405
1,435
2,558
865
548
(16)
26,516
Aditya Birla Financial Services
Life Insurance
Other Financial Services*
Elimination
Telecom (Nuvo’s Share) @
Aditya Birla Fashion & Retail $
IT-ITeS^
Divisions
Jaya Shree
Agri
Rayon
Insulators
Inter-segment Elimination
Consolidated Results
725
371
354
-
952
199
181
430
141
56
172
61
-
2,487
814
285
529
-
1,305
261
(16)
494
146
116
156
76
-
2,857
36
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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 $ 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 ^ IT-ITeS business was divested w.e.f 9th May 2014
2013-14 (PY)
8,021
1,246
-
267
979
199
780
24
804
130
-
674
8,938
1,186
-
263
922
189
733
-
733
205
-
528
25,892
4,927
742
809
3,376
1,609
1,767
5
1,772
550
79
1,143
26,516
5,798
1,105
652
4,041
1,703
2,338
(13)
2,325
833
76
1,416
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:
In FY15, consolidated profit was lower by ₹ 36 Cr. on account of net loss of ₹ 23 Cr. from operations of Minacs for the period from 1st Apr’14 to 8th May’14 & exceptional loss of ₹ 13 Cr. pertaining to the divestment of
Minacs. This loss is without considering deferred grant of ₹ 42 Cr. receivable over next 3 years, which will be accounted for on actual receipt basis. In FY14, consolidated profit was higher by ` 65 Cr. on account of divestment of Carbon Black business (incl. net tax credit of ` 41 Cr.) & interest is higher by one-time charge of ` 88 Cr. on redemption of CCDs by Minacs
owing to its divestment. Exceptional items in FY14 include loss of ₹ 19 Cr. on impairment of goodwill relating to investments in broking & wealth management businesses and gain of ₹ 24 Cr. on Carbon Black divestment.
PROFIT & LOSS (FY14 and FY15)
Profit & Loss Account Standalone Consolidated 2014-15 (CY) 2013-14 (PY) 2014-15 (CY)
(₹ Crore)
37
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
ABG Snapshot
Annexure
BALANCE SHEET
Balance Sheet Standalone Consolidated Mar - 14 Mar - 15
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
11,189
778
10,893
9647
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
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
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)
Dec - 15
8,698
-
3,241
-
170
12,109
-
12,109
1,597
-
-
1,164
9,087
-
-
-
261
668
3.4
0.34
Dec - 15
14,314
828
12,380
19,754
699
47,975
28,845
76,820
18,878
2,209
23,442
85
406
30,340
28,651
1,688
1,460
1,099
2.3
0.76
38
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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.
39
CONSOLIDATED RESULTS – SEGMENTAL (9 months for FY16 & FY15)
Consolidated Results Revenue EBIT 2014-15 (PY) 2015-16 (CY) 2014-15 (PY) 2015-16 (CY)
5,341
3,442
1,904
(5)
5,513
4,271
1,061
2,177
649
385
(0)
15,125
4,047
283
(13)
19,442
6,270
3,667
2,608
(5)
6,160
4,277
1,135
2,042
684
416
(3)
16,704
-
-
-
16,704
Aditya Birla Financial Services
Life Insurance
Other Financial Services*
Elimination
Telecom (Nuvo’s Share) @
Divisions
Jaya Shree
Agri
Rayon
Insulators
Inter-segment Elimination
Consolidated Results (From Continuing operations)
Aditya Birla Fashion & Retail $
IT-ITeS^
Inter Segment Elimination
Consolidated Revenue (Reported)
631
240
391
-
938
424
108
144
120
51
-
1,993
188
(16)
-
2,164
728
102
626
-
1,102
505
112
164
159
70
-
2,335
-
-
-
2,335
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
ABG Snapshot
Annexure
(₹ Crore)
* Other Financial Services include Asset Management, NBFC, Housing Finance, Health Insurance, 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 $ 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 ^ IT-ITeS business was divested w.e.f 9th May 2014
40
PROFIT & LOSS (9 months for FY16 & FY15)
Profit & Loss Account Standalone Consolidated 2014-15 (PY) 2015-16 (CY) 2014-15 (PY) 2015-16 (CY)
6,867
928
-
192
736
137
599
-
599
155
-
444
4,277
665
-
210
455
88
367
50
417
126
-
291
19,442
4,272
787
481
3,004
1,239
1,765
(13)
1,752
603
64
1,084
16,704
4,754
1,121
458
3,175
1,221
1,954
414
2,368
692
118
1,559
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
ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
Telecom
Divisions
New Ventures
ABG Snapshot
Annexure Note 1 : Pursuant to demerger of Madura Fashion & Lifestyle into Pantaloons Fashion & Retail Ltd.(PFRL), Madura & Pantaloons ceased to be division and subsidiary of ABNL w.e.f. 1st April 2015 and hence excluded from ABNL’s Standalone & Consolidated financials. Previous year financials are not comparable to that extent.
Note 2 : One-off items:
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 & to be accounted for on receipt basis. 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.
(₹ Crore)
TRANSACTION STRUCTURE Pre De-merger
Post De- merger & allotment of shares by ABFRL (As on 27th Jan 2016)
TRANSACTION STEPS SWAP RATIO
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ABNL Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla Financial Services
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
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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]
THANK YOU
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]
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