Corporate presentation

CORPORATE PRESENTATION
ADITYA BIRLA NUVO LIMITED
A PREMIUM CONGLOMERATE
FEBRUARY 2016
1
Aditya Birla Group (ABG) Snapshot
Pg 4
2
Aditya Birla Nuvo (ABNL) : Vision – Mission - Values
Pg 5
3
ABNL Structure
Pg 6
4
Key Highlights
Pg 7
5
ABNL Businesses :
5.1
Aditya Birla Financial Services
Pg 17
5.2
Telecom
Pg 27
5.3
Divisions
Pg 29
5.4
New Ventures
Pg 34
Annexure
Pg 35
6
2
GLOSSARY
Company
ABG – Aditya Birla Group
Technical
ABCAP – Aditya Birla Financial Services Limited
ABNL – Aditya Birla Nuvo 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
Technical
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)
AUA – Assets Under Advisory
ROA – Return on Asset
AUM – Assets under Management
ROACE : Return on Avg. Operating Capital Employed based on EBIT
AAUM – Quarterly average Assets under Management
ROE – Return on Equity
ARPU – Average Revenue Per User
RMS – Revenue Market Share
ARMB – Average Revenue Per Megabyte
TPA – Tons per annum
APE – Annual Premium Equivalent
VAS – Value Added Services
CY : Current Year
VFY -– Viscose Filament Yarn
CAGR – Compounded Annual Growth Rate
VLR – Visitor Location Register
EBITDA – Earnings Before Interest, Tax, Depreciation and Amortization
VSF – Viscose Staple Fibre
EBIT – Earnings Before Interest and Tax
YOY – Year on Year ( Corresponding period in previous Financial Year)
ECU – Electro Chemical Unit
YTD – Year to date
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
3
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
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Ranked 1st in Nielsen’s Corporate Image Monitor 2014-15 – Occupying pole position for 3 consecutive years
Key Highlights
Flagship listed
companies
Aditya Birla
Financial Services
Telecom
Aditya Birla Nuvo (ABNL)
(Conglomerate)
Annexure
Hindalco - Incl. Novelis
(Aluminium & Copper)
Idea Cellular (Telecom)
Aditya Birla Fashion &
Retail Ltd (ABFRL)
Global positioning
In India
Largest Indian MNC with manufacturing operations in the US
Leadership Aluminium, Cement, Carbon Black, VSF, VFY,
Position
Branded Apparels,Copper, Chlor-alkali, Insulators
(in terms of capacity/production/sales)
Divisions
New Ventures
Grasim & Ultratech
(VSF & Cement)
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
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)
4
ADITYA BIRLA NUVO LIMITED (ABNL) : VISION, MISSION & VALUES
Vision
ABG
ABG Snapshot
Snapshot
“To be a premium conglomerate building leadership in businesses and creating value for all
the stakeholders”
ABNL
Vision – Mission
Mission
ABNL Structure
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Telecom
Divisions
Telecom
Divisions
Divisions
New
Ventures
New Ventures
New
Ventures
Annexure
Annexure
Annexure
Kumar Mangalam Birla
Chairman





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
5
ABNL - A Premium Conglomerate
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Jaya Shree*
Life Insurance$
(74%)
Aditya Birla Financial Services (100%)^
Telecom
Telecom$#
(23.26%)
Agri*
Aditya Birla
Renewables Ltd.
(51%)$
NBFC (100%)^
Rayon*
Housing Finance (100%)^
Asset Management (51%)$
Aditya Birla
Financial Services
SOLAR
DIVISIONS
Insulators*
General Insurance Advisory
(50.01%)^
Private Equity (100%)^
Divisions
New Ventures
Broking (75%)^#
Wealth Management (100%)^
*Represents Divisions
New Ventures
Online Money Management (100%)^
Health Insurance (100%)^
Annexure
^Represents subsidiaries
$Represents Joint ventures #Listed
Note 1: Percentage figures indicated above represent ABNL’s Shareholding in its subsidiaries/JV’s
Aditya Birla Health
Insurance Co. Ltd.
(Proposed 51% JV)
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%.
6
ADITYA BIRLA NUVO : PROGRESSING IN LINE WITH ITS VISION
Investing in the Promising Sectors
Augmented Fashion
offerings through
acquisition of
Pantaloons, a top 3
big box apparel
retailer
Forayed in Life
Insurance business
through JV with
Sun Life, Canada
ABG Snapshot
ABNL
Vision – Mission
Enhanced strategic
stake in Telecom
through Idea
ABNL Structure
Expanded Linen Yarn and Fabric
Capacities
Commenced Housing Finance operations
Key Highlights
Aditya Birla
Financial Services
2000
2001
2003
2005 - 06
2005 - 11
2012
2013
2014
ABNL receives in-principle
approval from RBI to set up
Payments bank in a 51 : 49 joint
venture with Idea Cellular
Telecom
Divisions
New Ventures
Annexure
2015
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.
Added New Superfine
Yarn capacity in
Rayon
Created India’s largest
online money
management platform
“My Universe”
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.
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
7
BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES
Aditya Birla Financial Services Aditya Birla Financial Services
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
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
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.
Key Highlights
Aditya Birla
Financial Services
Diversified
Portfolio
Having 12 lines
of businesses
NBFC
Lending Book
USD 3.9 billion2
(₹ 23,442 Crore)
Dec’15 - 51%↑ y-o-y
Telecom
Strategic Action
• Sun Life Financial, Canada to raise its stake in Birla Sun Life
Insurance (BSLI) from 26% to 49%.
Divisions
New Ventures
Revenue – FY15
USD 1.3 billion
(₹ 7,926 Crore)
19%↑ y-o-y
EBT – FY15
USD 141 million
(₹ 849 Crore)
17%↑ y-o-y
• 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%.
Annexure
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
BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES
Telecom (Idea Cellular)
Divisions
ABG Snapshot
ABNL
Vision – Mission
Industry
Positioning
6th largest1 in the world
3rd largest2 in India
Net Debt to EBITDA : 3.3x
(Standalone)
(as on 31st Dec’15)
Outperforming
Industry
Revenue - FY15
Cash profit – FY15
(post tax)
EBITDA – FY15
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Strong Balance
Sheet
Revenue share grew y-o-y
from 17.2% to 18.5%2
Incremental RMS @ 37.7%3
USD 1.4 billion
(₹ 8,482 Crore)
32%↑ y-o-y
Industry Positioning
India’s largest Linen and VFY
player
Leading manufacturer of Urea &
Insulators
Revenue - FY15
USD 901 million
(` 5,405 Crore)
9%↑ y-o-y
USD 5.3 billion
(₹ 31,527 Crore)
19%↑ y-o-y
USD 1.9 billion
(₹ 11,281 Crore )
32%↑ y-o-y
Annexure
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
Strong ROACE –9MFY16
(annualised)
JayaShree
46% p.a.
Agri
15% p.a.
Rayon
29% p.a.
Insulators
22% p.a.
Divisions
23% p.a.
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.
9
A PLATFORM TO DRIVE SYNERGY OF RESOURCES
Standalone Net Debt
(₹ Crore)
ABG Snapshot
3,854
ABNL
Vision – Mission
Standalone Ratios
Net Debt/annualised EBITDA
3,584
2,980
3,591
Net Debt/Equity
5.8
3.4
ABNL Structure
3.7
3.0
Key Highlights
306
Aditya Birla
Financial Services
Telecom
Mar'09
676
Mar'12
1,193
929
Mar'15
Dec'15
O/s
Fertilisers
Subsidy
0.87
Mar'09
0.68
Mar'12
0.42
0.34
Mar'15
Dec'15
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
Divisions
New Ventures
Annexure
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.
10
DELIVERING BEST VALUE TO ALL THE STAKEHOLDERS …
Exit from sub scale businesses to achieve greater focus on other businesses
ABG Snapshot
ABNL
Vision – Mission
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
ABNL Structure
Creation of India’s largest branded apparel company
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
# 1 Menswear
player
# 1 Womenswear
player
Aditya Birla
Fashion & Retail Ltd.
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.
Annexure
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)
11
… AND DRIVING STRONG EARNINGS & VALUE GROWTH
Financials Services, Telecom & Divisions
ABG Snapshot
Branded Apparels
Consolidated Revenue
Consolidated EBITDA
(₹ Crore)
(₹ Crore)
CAGR 11%
ABNL
Vision – Mission
CAGR 37%
26,516
ABNL Structure
Key Highlights
21,840
5,798
14,331
3,247
867
Aditya Bira
Financial Services
FY09
FY12
FY15
FY09
Telecom
FY15
Market Capitalisation
Consolidated Net Profit
Divisions
FY12
(₹ Crore)
(₹ Crore)
CAGR 56%
CAGR 32%
(FY10-FY15)
28,205
New Ventures
1,416
21,654
890
Annexure
10,723
4,227
-436
FY09
FY12
FY15
FY09
FY12
FY15
Dec-15
12
ANCHORED BY A STRONG MANAGEMENT TEAM
Board of Directors
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
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.
Business Head
Business
Mr. Lalit Naik, Managing Director
VFY , Chemicals, Agri, Insulators
Mr. Ajay Srinivasan
Financial Services
Mr. Thomas Varghese
Textiles
Mr. Himanshu Kapania
Telecom
Str
ABG Snapshot
Telecom
Each business is run as an independent SBU under the leadership of a business head
Divisions
Chief Financial Officer heads the finance function which is the life blood for a business
New Ventures
Business heads & the Chief Financial Officer have wide-ranging experience in the areas of business development, strategy formulation,
restructuring, acquisitions, technology management etc.
Annexure
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
Ms. Pinky Mehta
13
CSR
Vision
ABG Snapshot
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.
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
THE FOCUS AREAS
Education
Infrastructure
Development
Social Causes
Some of the initiatives taken
EDUCATION
New Ventures
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
Our hospitals & medical centres at plant locations in remote areas of the country attended to over 1 lac patients for minor and major ailments.
Annexure
HEALTHCARE
Annexure
Sustainable
Livelihood
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.
Telecom
Divisions
Telecom
Health Ca re
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.
14
CSR
Helping farmers earn better through farmer training programmes on advance cropping techniques and other processes to improve yield.
ABG Snapshot
ABNL
Vision – Mission
SUSTAINABLE
DEVELOPMENT
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.
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
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
Telecom
Divisions
New Ventures
Annexure
15
CONSOLIDATED EARNINGS MIX – FY15
Segment Revenue
ABG Snapshot
Segment EBIT
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Fashion
& Lifestyle2
21%
Telecom
Divisions
New Ventures
Telecom
28%
(₹ Crore)
Fashion
& Lifestyle2
1
9%
Financial
Services
30%
Financial
Services
17%
21%
26,234
Aditya Birla
Financial Services
Divisions
Divisions
28%
2,874
1
(₹ Crore)
Telecom
46%
Annexure
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.
16
ADITYA BIRLA FINANCIAL SERVICES (ABFS)
Vision : To be a leader & role model in a broad based & integrated financial services business
ABG Snapshot
ABNL
Vision – Mission
Nation wide presence through 1,350 branches / touch points and 1,20,000 agents / channel partners
Ranks among top 5 fund
managers in India (excl. LIC)
AUM at ₹185,515 Cr.
(26%↑ y-o-y)
(Dec’ 15)
Diversified portfolio with
12 lines of businesses
ABNL Structure
Entering Strategic Partnerships & Investing in promising sectors
Key Highlights
Acquisition of
schemes of Apple
mutual fund
Foray in the
NBFC Business
Consolidation of
financial services
businesses under
Aditya Birla Nuvo
Acquisition of Alliance
mutual fund
Aditya Birla
Financial Services
Anchored by >11,750 employees
&
trusted by > 7 million customers
Lending book (Including housing
finance) at ₹ 23,442 Cr.
(51%↑ y-o-y) (Dec’ 15)
Foray in Housing Finance business
Acquired mutual fund schemes & portfolio
accounts from ING Mutual Fund
IFC became strategic financial investor in
MyUniverse
Launched Private
Equity Fund
Telecom
Foray in Mutual
Fund business
Divisions
New Ventures
Others
Equity
88,371
107,539
1,22,362
FY12
121,836
6,304
6,542
6,378
(₹ Crore)
6,637
7,926
600
96,762
FY13
FY14
Sun Life to raise its stake in
BSLI from 26% to 49%
E ar ning s Be fo r e Tax
(₹ Crore)
1,64,940
CAGR 17%
25,600
FY11
R e ve nue
ASSET UNDER MANAGEMENT
Annexure
88,309
Entered retail broking
through acquisition of
Apollo Sindhoori
Foray in Life Insurance
business through JV
with Sun Life, Canada
Entered into JV with MMI
Holdings to foray into
health insurance in India
Launched India’s
largest online money
management portal
“MyUniverse”
761
727
FY13
FY14
849
368
43,104
FY15
17
FY11
FY12
FY13
FY14
FY 15
FY11
FY12
FY15
ADITYA BIRLA FINANCE (ABFL) - NBFC
Established in 1991, one of India’s most reputed NBFC’s
ABG Snapshot
ABNL
Vision – Mission
Lending book reached
USD 3.7 billion mark
(44%↑ y-o-y) (Dec’ 15)
ROE – 15.1%
ROA – 2.09%
(9M FY16)
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)
Highest A1+ rating for short term debt and AA+ rating for long term debt from ICRA and India Ratings
ABNL Structure
Industry Landscape :
Key Highlights
Aditya
AdityaBirla
Birla
Financial
FinancialServices
Services
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
Telecom
Divisions
New Ventures
growth of NBFCs.
Lending Book
About Business & Competitive Edge:
(₹ Crore)
CAGR 69%
Strong Parentage Support: Capital Infusion of ~₹ 1,900 Crore in past 5 years to support growth
17,564
Experienced Management: Over 200 man years of domain expertise in financial services
Annexure
11,550
Portfolio diversification, client selection & active management key to sustainable growth
Robust Credit Appraisal & Risk Management leading to healthy book and return ratios
22,210
8,000
1,850
Mar'11
3,425
Mar'12
Mar'13
Mar'14
Mar'15
Dec' 15
18
ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS
Revenue & Net Profit
Opex to Net interest (%)
(₹ Crore)
ABG Snapshot
Revenue
Gross NPA
Net Profit
271
ABNL
Vision –Mission
39.0
34.6
289
36.0
30.5
1.16%
29.3
24.1
166
ABNL Structure
Key Highlights
Telecom
Divisions
New Ventures
1.29%
1.23%
0.90%
0.83%
37
FY11
0.82%
0.58%
100
196
Aditya Birla
Financial Services
0.84%
Net NPA
0.32%
56
348
715
1201
1776
1746
FY12
FY13
FY14
FY15
9mFY16
FY11
FY12
FY14
FY15
9MFY16
FY12
FY13
FY14
FY15
9MFY16
Net Worth (₹ Crore)
Segment wise Loan book (Dec’ 15)
Others
3%
Capital
Market
19%
FY13
0.16%
ROE
3051
CAGR 56%
2585
Mortgages
26%
1769
14.3%
10.2%
11.4%
ROA
13.1%
14.6%
15.1%
1079
Annexure
Corporate
Finance
25%
Infra
Finance
27%
235
497
628
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec'15
2.11%
2.19%
1.92%
1.85%
2.00%
FY11
FY12
FY13
FY14
FY15
2.09%
9MFY16
19
ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS
Spread Analysis
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Annexure
FY 12-13
FY 13-14
FY 14-15
Healthy borrowings Profile
Total Income / Average Loan Book
13.8%
13.5%
13.1%
Interest Cost / Average Loan Book
8.4%
8.3%
8.2%
Net Interest Income (Incl. Fee income)
5.4%
5.1%
5.0%
Opex / Average Loan Book
1.9%
1.5%
1.5%
Provisioning & Write-offs / Average Loan Book
0.6%
0.8%
0.5%
Out of total borrowings 66% is long term
1.92%
1.85%
2.0%
Well placed ALM strategy
ROA
Capital Adequacy ratio at 15.8%
(Tier I : 13.0% & Tier II : 2.8%)
Total borrowings at ₹18,803 Crore
Leverage at ~6x
Aditya Birla Housing Finance (ABHFL)
Commenced operations in
Oct’14
Lending book as on Dec’15
is ₹ 1,232 Cr.
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)
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.
20
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.
ABG Snapshot
ABNL
Vision – Mission
Among top 5 private life
insurers in terms of AUM
FY 15
EV: ₹3260 Crore
VNB Margin : 14.1%
AUM
of $5 billion
(as on Dec’15)
No 1 in group business with
21.8% market share2 (9mFY16)
Industry Outlook*
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
India’s Insurable population to touch 75 crore by 2020.
Ranked 10th among the 147 countries in the life insurance business.
Life insurance sector to increase at a CAGR of 12-15% over next five years
Total Market size of India’s Insurance sector projected to touch US$ 350-400 billion by 2020 from US$66.4 billion in FY13
About Business :
A nation-wide presence with 489 branches, 3 key bancassurance partners, over 60 thousand direct selling agents and more than 150 corporate
Divisions
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%
New Ventures
Annexure
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
Note 1: APE = Annual Premium Equivalent =100% of regular premium + 10% of single premium
* Media Reports, Press Releases, IRDA Journal
Note 2 : In terms of APE among private sector players
21
BSLI: FINANCIAL HIGHLIGHTS
(₹ Crore)
ABG Snapshot
New business
5,677
ABNL
Vision – Mission
Equity AUM
Renewal
30,185
5,216
1,837
5,233
4,833
1,938
1,697
ABNL Structure
3,959
3,597
3,380
Telecom
FY 11
FY12
FY13
315
30,291
5534
53%
55%
59%
58%
62%
67%
47%
45%
41%
42%
38%
33%
FY11
FY12
FY13
FY14
FY15
DEC'15
4702
3,667
FY14
FY15
Embedded Value
(₹ Crore)
350
4108
4015
305
FY11
542
461
FY12
FY13
371
FY14
285
FY15
103
9mFY16
VNB Margin %
27.5%
22.8%
3687
3225
3260
16.6%
New Ventures
Annexure
5267
5037
21,110
PAT
5691
24,775
19,760
Surplus funds distributed through
Dividend & Buy-back
(₹ Crore)
Divisions
22,929
Revenue
3,295
3,136
Key Highlights
Aditya Birla
Financial Services
(₹ Crore)
Debt & Liquid
5,885
1,926
2,080
Revenue & PAT
GROWTH IN AUM
(₹ Crore)
To tal Pr e mium I nco me
16.2%
14.1%
99
FY12
FY13
FY14
FY11
FY12
FY13
FY14
FY15
FY11
FY12
FY13
FY14
FY15
22
BIRLA SUN LIFE ASSET MANAGEMENT (BSLAMC)
Established in 1994, Birla Sun Life Asset Management Company Limited (BSLAMC) is a joint venture between Aditya Birla Nuvo and Sun Life Financial Inc,
ABG Snapshot
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
ABNL
Vision – Mission
AUM of
4th Largest AMC In
$25.7 billion
India
ABNL Structure
109 branches
across country
(as on Dec’15)
Asset Management
House of the year award
#4 in Equity AAUM
Top 2 in Fixed Income AAUM
by Money Today FPCIL 2015
Key Highlights
Growth in AUM
Aditya Birla
Financial Services
Domestic Equity
Domestic Fixed Income
Offshore & Alternate assets
Domestic Market Share
CAGR 25%
Divisions
17129
13602
96429
83451
66082
66284
9.20%
9.45%
9.85%
11550
Q4FY12
Q4FY13
Q4FY14
405
104,152
7.39%
6.92%
5.45%
10860
584
502
10.19%
366
77586
10631
10.09%
596
315
94128
4908
50543
9.09%
7294
6307
PAT
153974
133634
Annexure
(₹ Crore)
Equity Market Share
Revenue
Telecom
New Ventures
Revenue & PAT
Rising market share
25904
32693
Q4FY15
Q3FY16
FY11
5.27%
5.26%
5.78%
FY12
FY13
FY14
85
FY15
Q3FY16
FY11
59
FY12
73
FY13
95
FY14
123
FY15
163
9mFY16'
23
INSURANCE ADVISORY, PRIVATE EQUITY, HEALTH INSURANCE
ABIBL Market share
ABG Snapshot
ABNL
Vision – Mission
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.
Health
Insurance
Key Highlights
Aditya Birla
Financial Services
Telecom
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.
ABNL Structure
Aditya Birla
Insurance Brokers
(ABIBL)
(General insurance
advisory)
1.76%
MMI holdings Ltd. has received an in - principle approval from FIPB
0.93%
0.43%
0.50%
FY11
FY12
FY13
1.33%
1.16%
FY14
FY15
Leading General Insurance advisory Player
₹ Crore
In FY15, ABIBL’s premium placement increased y-o-y by 26% to ₹ 1,132 Cr. while
9MFY16
ABIBL
2013-14
2014-15
industry premium grew by 9%
Revenue
82
73
Consistently outperforming industry and gaining market share
Earning Before Tax
21
27
Net Profit
14
18
Divisions
New Ventures
Annexure
Aditya Birla
PE Funds under management (net) at ₹1,121 Cr.
Capital Advisors
Both Fund 1 & Sunrise fund have invested their net deployable corpus as on 31stDec15.
(ABCAP)
Planning to launch 3rd fund soon.
₹ Crore
ABCAP
2013-14
2014-15
Revenue
23
21
Earning Before Tax
9
6
6
4
Net Profit
24
BROKING, WEALTH MANAGEMENT & ONLINE MONEY MANAGEMENT
The Broking, Wealth management and Online Money Management businesses serves over
2.3 million customers through more than 675 branches
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
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
Key Highlights
₹ Crore
party products like company deposits, mutual funds, insurance,
Aditya Birla
Financial Services
Telecom
Wealth Management
Aditya Birla
Money Mart
(ABMM)
ABML
2013-14
2014-15
structured products, alternate investments, property services and has a
Revenue
75
premier wealth management service arm to cater to HNI customers.
Earning Before Tax
(12)
6
Net Profit/(Loss)
(12)
6
Assets under Advisory at ₹8,118 Cr. (Dec’15)
Equity assets under advisory at ₹2,299 Cr (36%↑ y-o-y)
119
Divisions
New Ventures
Annexure
Online Money
Management
MyUniverse
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
₹ Crore
ABMM
2013-14
2014-15
Revenue
66
86
IFC has become strategic financial investor in My Universe
Earning Before Tax
(6)
6
MyUniverse is the 7th largest SIP distributor by numbers in India with
3.4% market share in Dec’15
Net Profit/(Loss)
(6)
5
25
ABFS : FY2014-15 PERFORMANCE
Revenue at ₹ 7,926 Cr. (19%↑ y-o-y)
Earnings before Tax at ₹ 849 Cr. (17%↑ y-o-y)
₹ Crore
ABG Snapshot
ABNL
Vision – Mission
Revenue
FY14
FY15 ∆%
63%
Expanded lending book (52%↑ y-o-y)
BSLI
371
285
23%
Lower new business sales and in-force book
19%
BSAMC
140
182
29%
Growth in total AUM (39%↑ y-o-y)
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)
6,637
7,926
Total
727
849
Key Highlights
4,702
5,267
502
596
82
Divisions
∆%
411
1,776
Telecom
FY14 FY15
Remarks on profitability
251
1,201
Aditya Birla
Financial Services
EBT
ABFL
ABNL Structure
48%
Company
12%
New Ventures
Scaling up MyUniverse
Annexure
19%
17%
26
IDEA CELLULAR (TELECOM)
The fastest growing Indian Telco
No.6 mobile Operator
in the World with 182 million
active subscribers
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Annexure
Pan India Pure Play Wireless
Operator – (Voice + Data)
(2G+3G*+4G**)
Strong Balance sheet
Net Debt to EBITDA : 3.3x
(Standalone as on 31st Dec’15)
No. 3 mobile Operator in India
4
with 18.5% RMS
Mobile Data : The Next Opportunity
Industry Growth Drivers:
Voice:
300 mn
Wireless
Internet
Users
subscribers)(1)
Indian Active subscriber penetration (measured on VLR) at 71.7% (~907 million
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)
Mobile Broadband
Users- 9.5%
of wireless subs
Users yet to adopt
digital services
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
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
93 mn
580 mn
Consolidated Revenue
(₹ Crore)
CAGR 20%
31527
26473
26432
19489
22407
15438
(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
FY 11
FY 12
FY 13
FY 14
FY 15
9mFY16
27
IDEA : FINANCIALS HIGHLIGHTS
Revenue Market Share (%)
ABG Snapshot
14.0
14.3
15.8
532
453
243
165
86
ABNL Structure
Q2FY13
Aditya Birla
Financial Services
Q2FY14
Q2FY15
EBITDA
24
Q2FY16
FY08
FY10
FY11
FY12
FY13
9
FY11
7.2
FY12
10.1
FY13
70.4
96.01
FY15 9mFY16
126
145
Q3FY13
Q3FY14
Q3FY15
Q3FY16
Strong Balance Sheet (Figures in ₹ billion)
Net Worth
Net Debt
74.3
393
269
206
31.9
40.3
121
133
140
79
25.04
230
114
FY14
91
49.8
34.1
19.7
52
22.3
86.2
60.71
Annexure
26.9
CAGR 26%
85.19
39.1
FY14
(₹ Crore)
112.81
50.85
309 MB
167 MB
Cash Profit
CAGR 30%
New Ventures
136
64
Net Profit
Divisions
470 MB
172
43
FY09
26.9
90
(₹ billion)
Telecom
122
113
653 MB
584
158
363
Q2FY12
588
Usages per subs
ARMB(paisa)
31
683
Subscribers
ABNL
Vision – Mission
Key Highlights
Data ARPU(INR)
Robust growth in MOUs (billion minutes)
18.5
17.2
Improving Data ARPU
Robust growth in Subscribers & MOUs
Incremental
RMS 37.7%
FY15 9mFY16
FY11
FY12
FY13
FY14
FY15 9mFY16
123
131
143
255
165
Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Dec'15
28
DIVISIONS (JAYA SHREE, INDO-GULF FERTILISERS, INDIAN RAYON & ADITYA BIRLA INSULATORS)
EBITDA (FY15) at ₹ 615 Cr. (11%↑ y-o-y)
Revenue (FY15) at ₹ 5,405 Cr. (9%↑ y-o-y)
ABG Snapshot
ROACE improved from 14% p.a. in FY14 to 16% p.a. in FY15 to 23% p.a. in 9MFY16
ABNL
Vision – Mission
ABNL Structure
Business
Key Highlights
Aditya Birla
Financial Services
Telecom
Jaya Shree
Agri
Market Position
India’s #1 Linen player & leading
manufacturer of wool tops & worsted yarn
8th
largest urea manufacturer and among the
top 2 energy efficient urea plants in India
Divisions
• 70% of linen yarn demand in India is met through
imports
• 28% of urea demand in India was met through
imports during FY15
• Gas pooling policy to benefit the urea sector
Strong ROACE%
(9M FY16)
46% p.a.
15% p.a.
• Premium is driven by quality and value added yarns
Rayon
Largest manufacturer & exporter of VFY in India • Indian market continues to favour fine & superfine
New Ventures
Annexure
Opportunity & Outlook
29% p.a.
denier yarn
Insulators
India’s largest & world’s 4thlargest
• Long term anti-dumping duty (till Sep’2019) to
benefit domestic manufacturers
22% p.a.
29
JAYA SHREE
VFY has a niche market globally
Premium
driven
by quality
and valueLeading
added
yarns of wool
Drove-journey
of linenis
from
a commodity
to a
manufacturer
India’s #1 Linen player
lifestyle symbol in India & expanded its Market size
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
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
Leadership Position:
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)
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.
Divisions
Revenue Mix
LINEN
Revenue (₹ Crore)
EBITDA (₹ Crore)
CAGR 17%
CAGR 15%
WOOL
New Ventures
Annexure
tops and worsted yarn in India
1,046
39%
47%
61%
53%
1,144
1,300
1,435
774
FY 11 FY 12 FY 13 FY 14 FY 15
141
154
Capital Employed (₹ Cr.)
ROACE (%)
97%
82%
172
175
99
FY 11 FY 12 FY 13 FY 14 FY 15
57%
53%
32%
198
88
179
317
237
FY 11
FY 12
FY 13
FY 14
FY 15
30
INDO GULF FERTILIZER (AGRI-BUSINESS)
8th Largest urea manufacturer in India &
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
Among the top 2 energy efficient urea plants in
India
Stronger farmer connect & strategically located in the
heartland of Indo-Gangetic plains
1st company to introduce the principles
of Six Sigma in the agricultural fields
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
Offerings :
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”
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.
Revenue (₹ crore)
New Ventures
2,924
2,313
2,107
Annexure
Capital Employed (₹ Cr.)
EBITDA (₹ crore)
2,558
176
211
39%
197
148
1,244
26%
77
984
1,854
FY12
FY13
FY14
FY15
FY11
FY12
FY13
FY14
FY15
FY11
1,616
12%
3%
496
FY11
ROACE (%)
FY12
FY13
FY14
1,641
7%
FY15
31
INDIAN RAYON (VFY AND CHEMICALS)
The Largest manufacturers and
Exporter of VFY in India
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Integrated facilities with 34.5 MW
captive power plant
Opportunities:
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
Business Overview:
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
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
Divisions
Revenue (₹ crore)
Revenue Mix
New Ventures
680
777
860
222
865
189
110
VFY
FY15
Capital Employed (₹ Cr.)
EBIDTA (₹ crore)
565
19%
Annexure
43% VFY production share &
55% share in VFY exports in FY15
26%
197
17%
440
24%
19%
128
Chemicals
ROACE (%)
515
681
21%
759
757
FY14
FY15
81%
FY11
FY12
FY13
FY14
FY15
FY11
FY12
FY13
FY14
FY15
FY11
FY12
FY13
32
ADITYA BIRLA INSULATORS(ABI)
Exporting to over 58
countries worldwide.
#1 manufacturer of insulator in India.
ABG Snapshot
4th largest manufacturer
of insulator globally.
Industry Scenario :
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
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.
Business Overview:
: 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
Earnings:
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
Revenue (₹ Crore)
New Ventures
518
468
454
505
548
67
FY12
FY13
FY14
FY15
ROACE (%)
34%
Annexure
FY11
Capital employed (₹ Cr.)
EBITDA (₹ Crore)
134
FY11
FY12
83
95
61
FY13
FY14
FY15
15%
17%
395
430
455
FY13
FY14
FY15
12%
10%
362
375
FY11
FY12
33
NEW VENTURES
Solar Power :
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
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.
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
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
Payments Bank:
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.
New Ventures
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
Annexure
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
34
SHAREHOLDING PATTERN & MARKET CAP
As on 31st December 2015
Category
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
No . of
Shareholders
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Annexure
19
Promoter & Promoter Group
Shareholding (%)
369
20.84
16.01%
Domestic Institutional Investors
254
15.92
12.23%
1,30,737
18.98
14.58%
1,31,379
130.19
100.00%
Total
Institutions
2167
1664
57.18%
74.44
Foreign Institutional Investors
Non-Institutional Investors
Key Highlights
No. of Shares held
(in million)
Market Cap (₹ Cr.)
ABNL Share Price (₹)
814
945
976
9,336
9,244
10,723
11,727
Mar'10
Mar'11
Mar'12
Mar'13
906
1091
28,214
21,654
14,196
Mar'14
Mar'15
31st Dec'15
Shareholding %
Life Insurance Corp. of India
4.7
Trusted by 131,379 shareholders
Reliance Capital Asset Management Ltd.
2.0
Over 98% of shares are in dematerialised form
India Opportunities Growth Fund Ltd.
1.8
HSBC Global Investment Funds
1.4
For analysts coverage on ABNL visit :
http://www.adityabirlanuvo.com/Analyst_Coverage.php
Franklin Templeton Investment funds
1.1
Stock Code:
Tata Asset Management Ltd.
1.0
BSE : 500303
Franklin Templeton Asset Management (India) Pvt. Ltd.
0.9
Reuters : ABRL.BO / ABRL.NS
Face value of ₹ 10 per share
NSE : ABIRLANUVO
Bloomberg : ABNL IN
35
CONSOLIDATED RESULTS – SEGMENTAL (FY14 & FY15)
Consolidated Results
Revenue
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
2013-14 (PY)
(₹ Crore)
2014-15 (CY)
6,637
7,926
4,702
5,267
1,946
2,666
(11)
(7)
6,669
7,467
4,759
5,450
2,898
EBIT
2013-14 (PY)
Aditya Birla Financial Services
2014-15 (CY)
725
814
Life Insurance
371
285
Other Financial Services*
354
529
-
-
Telecom (Nuvo’s Share) @
952
1,305
Aditya Birla Fashion & Retail $
199
261
283
IT-ITeS^
181
(16)
4,979
5,405
Divisions
430
494
1,300
1,435
Jaya Shree
141
146
2,313
2,558
Agri
56
116
860
865
Rayon
172
156
505
548
Insulators
61
76
(50)
(16)
-
-
25,892
26,516
2,487
2,857
Elimination
Inter-segment Elimination
Consolidated Results
Annexure
* 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
36
PROFIT & LOSS (FY14 and FY15)
Profit & Loss Account
Standalone
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Annexure
(₹ Crore)
2013-14 (PY)
2014-15 (CY)
8,021
8,938
1,246
1,186
-
-
267
Consolidated
2013-14 (PY)
2014-15 (CY)
Revenue
25,892
26,516
EBITDA
4,927
5,798
Less : NBFC Interest Expenses
742
1,105
263
Less : Other Interest Expenses
809
652
979
922
EBDT
3,376
4,041
199
189
Less : Depreciation
1,609
1,703
780
733
Earnings Before Tax(Before exceptional items)
1,767
2,338
24
-
5
(13)
804
733
Earnings Before Tax
1,772
2,325
130
205
Less : Provision for Taxation (Net)
550
833
-
-
79
76
674
528
1,143
1,416
Exceptional Gain / (Loss)
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.
37
BALANCE SHEET
(₹ Crore)
Balance Sheet
Standalone
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Annexure
Mar - 14
Mar - 15
Dec - 15
8,108
8,519
8,698
-
-
-
3,753
3,688
3,241
-
-
-
88
106
170
11,949
12,314
12,109
-
-
-
11,949
12,314
12,109
1,845
1,859
1,597
20
20
-
Goodwill
-
-
-
NBFC Lending (Incl. Housing finance)
1,574
1,635
1,164
7,952
8,695
9,087
-
-
-
-
-
-
-
-
-
557
105
261
Cash Surplus & Current Investments
623
655
668
2.6
3.0
3.4
0.39
0.42
0.34
Consolidated
Mar - 14
Mar - 15
Dec - 15
11,189
12,871
14,314
778
802
828
10,893
11,299
12,380
9647
14,686
19,754
504
485
699
Capital Employed
33,012
40,142
47,975
Policy holder’s Funds(Incl. funds for future appropriation)
23,557
28,839
28,845
Total Liabilities
56,569
68,981
76,820
Net Block (Incl. Capital Advances)
13,045
12,342
18,878
4,982
3,973
2,209
11,550
17,706
23,442
Net Working Capital
730
160
85
Long Term Investments
410
408
406
24,764
30,147
30,340
Policyholder’s Investments
23,435
28,595
28,651
Shareholder’s Investments
1,329
1,552
1,688
1,089
4,246
1,460
Book Values (₹ )
860
989
1,099
Net Debt / Annualised EBITDA (x)
2.3
1.5
2.3
0.88
0.55
0.76
Net Worth
Minority Interest
Debt
NBFC Borrowings(Incl. Housing finance)
Differed Tax Liabilities (Net)
Life Insurance Investments
Net Debt / Equity (x)
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.
38
CONSOLIDATED RESULTS – SEGMENTAL (9 months for FY16 & FY15)
Consolidated Results
Revenue
ABG Snapshot
2014-15 (PY)
2015-16 (CY)
5,341
6,270
ABNL
Vision – Mission
3,442
3,667
1,904
2,608
ABNL Structure
(5)
(5)
5,513
6,160
4,271
4,277
1,061
1,135
2,177
2,042
649
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Annexure
(₹ Crore)
EBIT
2014-15 (PY)
631
728
Life Insurance
240
102
Other Financial Services*
391
626
-
-
Telecom (Nuvo’s Share) @
938
1,102
Divisions
424
505
Jaya Shree
108
112
Agri
144
164
684
Rayon
120
159
385
416
Insulators
51
70
(0)
(3)
-
-
15,125
16,704
1,993
2,335
4,047
-
Aditya Birla Fashion & Retail $
188
-
283
-
IT-ITeS^
(16)
-
(13)
19,442
-
Inter Segment Elimination
-
2,335
16,704
Aditya Birla Financial Services
2015-16 (CY)
Elimination
Inter-segment Elimination
Consolidated Results (From Continuing operations)
Consolidated Revenue (Reported)
2,164
* 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
39
PROFIT & LOSS (9 months for FY16 & FY15)
Profit & Loss Account
Standalone
ABG Snapshot
ABNL
Vision – Mission
ABNL Structure
Key Highlights
Aditya Birla
Financial Services
Telecom
Divisions
New Ventures
Annexure
2014-15 (PY)
2015-16 (CY)
6,867
4,277
928
665
-
-
192
(₹ Crore)
Consolidated
2014-15 (PY)
2015-16 (CY)
Revenue
19,442
16,704
EBITDA
4,272
4,754
Less : NBFC Interest Expenses
787
1,121
210
Less : Other Interest Expenses
481
458
736
455
EBDT
3,004
3,175
137
88
Less : Depreciation
1,239
1,221
599
367
Earnings Before Tax(Before exceptional items)
1,765
1,954
-
50
(13)
414
599
417
Earnings Before Tax
1,752
2,368
155
126
Less : Provision for Taxation (Net)
603
692
-
-
64
118
444
291
1,084
1,559
Exceptional Gain / (Loss)
Less : Minority Interest
Net Profit
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.
40
TRANSACTION STRUCTURE
Post De- merger & allotment of shares by ABFRL
(As on 27th Jan 2016)
Pre De-merger
Public
ABG Snapshot
57.2%
ABNL
Vision – Mission
57.2%
ABNL
1
42.8%
50.4%
ABNL
9.1% #
ABNL Structure
ABFRL
4
3
Madura Lifestyle
100% #
Key Highlights
MGLRCL
Aditya Birla
Financial Services
72.6% #
2
27.4%
PFRL
42.8%
Public
40.5%
Madura Lifestyle
# Including indirect holding
Telecom
TRANSACTION STEPS
Divisions
New Ventures
Annexure
SWAP RATIO
1 Mirror Demerger of Madura Fashion division into PFRL
 26 equity shares of PFRL for every 5 equity shares of ABNL
2
 Mirror Demerger of Madura Lifestyle division into PFRL
 7 equity shares of PFRL for every 500 equity shares of MGLRCL
3 Scheme becomes effective and PFRL renamed as ABFRL
 1 equity share of PFRL for all o/s preference shares of MGLRCL
4
 ABFRL ceased to be subsidiary of ABNL
A shareholder holding 10 shares in ABNL pre-demerger, will now hold 10 shares in ABNL & 52 shares in ABFRL
41
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.
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.
Copyright © 2016 Aditya Birla Nuvo Ltd.
42
THANK YOU
Aditya Birla Nuvo Limited
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]
Investor Relations Contact
Romi Talwar | Corporate Finance & Investor Relations | Aditya Birla Nuvo Ltd.
Address : Aditya Birla Centre | A-Wing | 4th Floor | S. K. Ahire Marg | Worli | Mumbai 400030
Phone : +91 22 2499 5573 | Email : [email protected]
43