Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Aditya Birla Nuvo — Investor Presentation (August 2016)
50 slides from Grasim Industries's investor presentation, August 2016
Slide 1: Corporate Presentation - Aditya Birla Nuvo Limited
CORPORATE PRESENTATION ADITYA BIRLA NUVO LIMITED A PREMIUM CONGLOMERATE August 2016
Slide 2: Agenda
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 24 5.2 Telecom Pg 34 5.3 Divisions Pg 36 5.4 New Ventures Pg 41 6 Annexure Pg 42 2
Slide 3: Glossary
GLOSSARY Company Technical ABG – Aditya Birla Group FCF – Free Cash Flow Technical ABNL – Aditya Birla Nuvo Limited ABCAP – Aditya Birla Financial Services Limited FY : Financial Year (April-March) EBO – Exclusive Brand Outlet ABFL – Aditya Birla Finance Limited MBO – Multi Brand Outlet ABHFL – Adit
Slide 4: Strong Parentage of Aditya Birla Group
Strong Parentage of Aditya Birla Group (ABG) A USD 41 billion Indian multinational, Aditya Birla Group is in the league of Fortune 500 ABG Snapshot Operating in 36 countries across 6 continents deriving Ranked 4th in global top companies for leaders & 1st in Asia Pacific over 50% of revenue from ove
Slide 5: ABNL: Vision, Mission & Values
ADITYA BIRLA NUVO LIMITED (ABNL) : VISION, MISSION & VALUES ABG ABG Snapshot Snapshot Vision “To be a premium conglomerate building leadership in businesses and creating value for all the stakeholders” ABNL Vision – Mission ABNL Structure ABNL Structure Mission Investing in promising sectors Key H
Slide 6: ABNL - A USD 3.6 billion Conglomerate
ABNL - A USD 3.6 billion Conglomerate ABG Snapshot DIVISIONS SOLAR ABNL Vision – Mission Jaya Shree* Solar Power JV Life Insurance$ Aditya Birla Financial Services Ltd. (100%)^ Telecom$# (51%)$ ABNL Structure (51%) (23.26%) Agri* 49% NBFC (100%)^ 51% Key Highlights Payments Rayon* Housing Finance (1
Slide 7: Aditya Birla Nuvo: Progressing in Line with Its Vision
ADITYA BIRLA NUVO : PROGRESSING IN LINE WITH ITS VISION Investing in the Promising Sectors ABG Snapshot Forayed in Life Augmented Fashion The scheme of demerger of Insurance business offerings through Expanded Linen Yarn and Fabric Madura division into PFRL through JV with acquisition of Capacities
Slide 8: Building Leadership Position Across Its Businesses
BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES Aditya Birla Financial Services Aditya Birla Financial Services ABG Snapshot Industry AUM Augmenting Portfolio ABNL Positioning USD 28.4 billion1 • ABNL has entered into a JV agreement in June 2015 with MMI Vision – Mission (₹ 184,276 Crore) Among t
Slide 9: Building Leadership Position Across Its Businesses
BUILDING LEADERSHIP POSITION ACROSS ITS BUSINESSES Telecom (Idea Cellular) Divisions ABG Snapshot Industry Strong Balance Industry Positioning FCF to Firm – FY16 ABNL Positioning Sheet India’s largest Linen, VFY and (pre-tax) Vision – Mission 6th largest1 in the world Net Debt to EBITDA : 3.25x Insu
Slide 10: A Platform to Drive Synergy of Resources
A PLATFORM TO DRIVE SYNERGY OF RESOURCES Standalone Net Debt Standalone Ratios (₹ Crore) ABG Snapshot Net Debt/annualised EBITDA Net Debt/Equity 3,854 3,584 3,930 ABNL Vision – Mission 3,591 5.8 4.6 2,192 ABNL Structure 3.7 3.0 2.5 Key Highlights O/s 0.87 0.68 0.42 0.46 0.22 1,193 1112 925 Fertilise
Slide 11: Delivering Best Value to All the Stakeholders
DELIVERING BEST VALUE TO ALL THE STAKEHOLDERS … Exit from sub scale businesses to achieve greater focus on other businesses ABG Snapshot Outcome Business Divested Effective Date Enterprise Value ABNL Supported ABNL’s growth plans Carbon Black 1st April 2013 USD 240 million Vision – Mission & strengt
Slide 12: Driving Strong Earnings & Value Growth
… AND DRIVING STRONG EARNINGS & VALUE GROWTH Financials Services, Telecom & Divisions Branded Apparels Consolidated Revenue Consolidated EBITDA (₹ Crore) (₹ Crore) ABG Snapshot CAGR 11% CAGR 37% ABNL Vision – Mission 26,516 23,129 6,535 21,840 ABNL Structure 5,798 14,331 3,247 Key Highlights 867 Adi
Slide 13: Creating a Premier Play on India's Growth - Current Holding Structure
CREATING A PREMIER PLAY ON INDIA’S GROWTH Merger of ABNL with Grasim and Listing of Financials Services Business – Current Holding Structure ABG Snapshot Aditya Birla Nuvo Grasim ABNL Vision – Mission Promoters Public Promoters Public 31.3%(1) 68.7%(1) 58.4% 41.6% ABNL Structure Grasim Aditya Birla
Slide 14: Creating a Premier Play on India's Growth - Resultant Holding Structure
CREATING A PREMIER PLAY ON INDIA’S GROWTH Resultant Holding Structure ABG Snapshot 26.2% Promoter Public ABNL Vision – Mission 38.8% 61.2% 1 Grasim + Aditya Birla ABNL Structure Nuvo 16.6% Key Highlights 57.2% 60.2% 28.0% 51.0% 2 Aditya Birla UltraTech Aditya Birla Financial Idea Cellular Solar Divi
Slide 15: Transaction Rationale
CREATING A PREMIER PLAY ON INDIA’S GROWTH Transaction Rationale ABG Snapshot Stronger parentage for Financial Services Business: ABNL Financial Services Business is likely to benefit from lower cost of funds, given stronger credit rating of Grasim (CRISIL – AAA): Vision – Mission AAA parent may pote
Slide 16: Transaction Rationale: Value Unlocking in Financial Services
CREATING A PREMIER PLAY ON INDIA’S GROWTH Transaction Rationale ABG Snapshot Value Unlocking in Financial Services Business ABNL Aditya Birla Nuvo has invested and nurtured the Financial Services Business with capital infusion on an on-going basis to deliver on Vision – Mission growth expectations A
Slide 17: Shareholder Benefits
CREATING A PREMIER PLAY ON INDIA’S GROWTH Shareholder Benefits Comments Grasim ABNL ABG Snapshot Exposure to fast growing ABFS growth (FY 11-16) Idea Cellular growth (FY 12-16) ABNL sectors (Financial Vision – Mission Lending book: 15x Revenue Market Share: 14.3% to 18.9% Services & Telecom) Total
Slide 18: Post Merger Capital Structure of Grasim and ABFSL
CREATING A PREMIER PLAY ON INDIA’S GROWTH Post Merger Capital Structure of Grasim and ABFSL Step 1: Merger of ABNL into Grasim ABG Snapshot As on 30 June, 2016 # Shares (Mn) ABNL Outstanding equity shares of Grasim of face value of Rs. 10 each (A) 93.35 Vision – Mission Outstanding equity shares of
Slide 19: Indicative Activities to Completion
CREATING A PREMIER PLAY ON INDIA’S GROWTH Indicative Activities to Completion ABG Snapshot Grasim and ABNL board approved the merger and swap ratio ABNL Draft scheme filed with Stock Exchanges Vision – Mission File application with IRDA and CCI ABNL Structure IRDA approval for transfer of insurance
Slide 20: Anchored by a Strong Management Team
ANCHORED BY A STRONG MANAGEMENT TEAM Board of Directors ABNL has a balanced Board, comprising of 1 Executive, 2 Non-Executive, 1 nominee & 4 Independent Directors, including 2 women directors. ABG Snapshot Independent directors have rich experience in their respective fields and incl. ex-secretary t
Slide 21: CSR
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 THE FOCU
Slide 22: CSR
CSR 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 ABG Snapshot SUSTAINABL
Slide 23: Consolidated Earnings Mix - FY16
CONSOLIDATED EARNINGS MIX – FY16 ABG Snapshot Segment Revenue Segment EBIT ABNL Vision – Mission Telecom Telecom 48% ABNL Structure 36% Key Highlights Aditya Birla Financial Services ` 23,129 Cr. ` 3,101 Cr. Financial Services Financial Telecom 40% Services 31% Divisions Divisions Divisions 24% 21%
Slide 24: Aditya Birla Financial Services (ABFS)
ADITYA BIRLA FINANCIAL SERVICES (ABFS) Vision : To be a leader & role model in a broad based & integrated financial services business ABG Snapshot Nation wide presence through ~1,350 branches / touch points and more than 1,20,000 agents / channel partners AUM at ₹196,545 Cr. Anchored by >11,500 empl
Slide 25: Aditya Birla Finance (ABFL) - NBFC
ADITYA BIRLA FINANCE (ABFL) - NBFC Established in 1991, one of India’s most reputed NBFC’s ABG Snapshot Lending book reached ROE – 15.4% Net worth grew 16x from ₹ 235 Gross NPA - 0.63% USD 4.0 billion mark ROA – 2.1% Crore in Mar’10 to ₹ 3,696 Crore Net NPA - 0.22% (47%↑ y-o-y) (Mar’ 16) (FY16) in M
Slide 26: Aditya Birla Finance (NBFC): Financial Highlights
ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS Revenue & Net Profit Opex to Net interest (%) (₹ Crore) Gross NPA Net NPA ABG Snapshot Revenue Net Profit 36 35 409 31 29 1.29% 1.23% ABNL 1.16% 25 Vision –Mission 271 0.84% 0.90% 0.83% 0.58% 0.63% ABNL Structure 166 100 0.32% 0.22% 56 Key Highlights
Slide 27: Aditya Birla Finance (NBFC): Financial Highlights
ADITYA BIRLA FINANCE (NBFC): FINANCIAL HIGHLIGHTS Spread Analysis FY 13-14 FY 14-15 FY 15-16 Healthy borrowings Profile Total Income / Average Loan Book 13.5% 13.1% 12.6% Capital Adequacy ratio at 16.2% ABG Snapshot (Tier I : 13.7% & Tier II : 2.5%) Interest Cost / Average Loan Book 8.3% 8.2% 7.8% A
Slide 28: Birla Sun Life Insurance (BSLI)
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 coun
Slide 29: BSLI: Financial Highlights
BSLI: FINANCIAL HIGHLIGHTS GROWTH IN AUM Revenue & PAT To tal Pr e mium I nco me (₹ Crore) (₹ Crore) (₹ Crore) ABG Snapshot Equity AUM Debt & Liquid Revenue PAT New business Renewal 30,185 30,811 5691 5,708 5,885 5,580 5267 ABNL 5,216 5,233 5037 24,775 4702 4,833 22,929 Vision – Mission 1,926 21,110
Slide 30: Birla Sun Life Asset Management (BSLAMC)
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 schem
Slide 31: Health Insurance, Insurance Advisory, Private Equity
HEALTH INSURANCE, INSURANCE ADVISORY, PRIVATE EQUITY ABIBL Market share Entered into a JV agreement with MMI Holdings Ltd. (a leading South African insurance-based financial services group) in Jun’15 to foray in health insurance ABG Snapshot business in India. 1.68% 1.33% ABNL Aditya Birla Health Ha
Slide 32: Aditya Birla Money
ADITYA BIRLA MONEY The Broking, Wealth management and Online Money Management businesses serves over 2.6 million customers through more than 675 branches ABG Snapshot ABNL ABML is a broking and distribution player, offering Equity and Derivative trading through NSE and BSE and Currency Vision – Miss
Slide 33: ABFS: FY2015-16 Performance
ABFS : FY2015-16 PERFORMANCE Revenue at ₹ 9,192 Cr. (16%↑ y-o-y) Earnings before Tax at ₹ 1,110 Cr. (21%↑ y-o-y) ABG Snapshot ₹ Crore Revenue EBT ABNL Company Remarks on profitability Vision – Mission FY15 FY16 ∆% FY15 FY16 ∆% 1,776 2,442 37% NBFC 411 626 52% Expansion of lending book (47%↑ y-o-y) A
Slide 34: Idea Cellular (Telecom)
IDEA CELLULAR (TELECOM) The fastest growing Indian Telco ABG Snapshot # 6 mobile Operator Strong Balance sheet Pan India Pure Play Wireless # 3 mobile Operator in India in the World with 184 million 4 Net Debt to EBITDA : 3.25x Operator – (Voice + Data) with 18.9% RMS active subscribers (Standalone
Slide 35: Idea: Financial Highlights
IDEA : FINANCIALS HIGHLIGHTS Robust growth in Subscribers & MOUs Improving Data ARPU Revenue Market Share (%) Incremental RMS 44% Data ARPU(INR) ARMB(paisa) Usages per subs Robust growth in MOUs (billion minutes) 586 MB 641 MB 18.9 Subscribers 786 33.9 410 MB ABG Snapshot 17.5 683 16.2 14.3 14.9 588
Slide 36: Divisions (Jaya Shree, Indo-Gulf, Indian Rayon & Insulators)
DIVISIONS (JAYA SHREE, INDO-GULF FERTILISERS, INDIAN RAYON & ADITYA BIRLA INSULATORS) Revenue (FY16) at ₹ 5,466 Cr. (1%↑ y-o-y) EBITDA (FY16) at ₹ 764 Cr. (24%↑ y-o-y) ABG Snapshot ROACE improved from 14% p.a. in FY14 to 16% p.a. in FY15 to 21% p.a. in FY16 ABNL Vision – Mission ABNL Structure Stron
Slide 37: Jaya Shree
JAYA SHREE VFY has a niche market globally India’s #1 Linen player Drove-journey Premiumof linenis driven from by quality a commodity to a and valueLeading added yarns of wool manufacturer lifestyle symbol in India & expanded its Market size tops and worsted yarn in India ABG Snapshot ABNL Opportuni
Slide 38: Indo Gulf Fertilizer (Agri-Business)
INDO GULF FERTILIZER (AGRI-BUSINESS) 8th Largest urea manufacturer in India & Stronger farmer connect & strategically located in the A Complete Agri-solution provider with Among the top 2 energy efficient urea plants in heartland of Indo-Gangetic plains strong brand ‘Birla Shaktiman ABG Snapshot Ind
Slide 39: Indian Rayon (VFY and Chemicals)
INDIAN RAYON (VFY AND CHEMICALS) The Largest manufacturers and 43% VFY production share & Integrated facilities with Caustic Soda & Exporter of VFY in India 61% share in VFY exports in FY16 34.5 MW captive power plant ABG Snapshot ABNL Opportunities: Vision – Mission VFY has a niche market globally
Slide 40: Aditya Birla Insulators (ABI)
ADITYA BIRLA INSULATORS(ABI) Exporting to over 58 4th largest manufacturer #1 manufacturer of insulator in India. countries worldwide. of insulator globally. ABG Snapshot Industry Scenario : ABNL Vision – Mission The power generation , transmission & distribution sector is the key growth driver for
Slide 41: New Ventures: Solar Power and Payments Bank
NEW VENTURES Solar Power : ABNL had won a total of 60 MW (AC Capacity) Solar Power projects in three talukas of Karnataka in Mar’16 for tariff ranging between ABG Snapshot ` 4.86 per KWh to ` 4.97 per KWh ABNL CRISIL A- (Stable) rating assigned for proposed ` 300 Cr. bank facilities for the project
Slide 42: Shareholding Pattern & Market Cap
SHAREHOLDING PATTERN & MARKET CAP ABNL Share Price (₹) Market Cap (₹ Cr.) As on 30th June 2016 Demerger of Category No . of No. of Shares held Fashion Business ABG Snapshot Shareholding (%) Shareholders (in million) 1664 ABNL Promoter & Promoter Group 19 76.05 58.4% 1091 906 814 945 976 823 1221 Vis
Slide 43: Consolidated Results - Segmental (FY15 & FY16)
CONSOLIDATED RESULTS – SEGMENTAL (FY15 & FY16) (₹ Crore) Revenue Consolidated Results EBIT 2014-15 (PY) 2015-16 (CY) 2014-15 (PY) 2015-16 (CY) ABG Snapshot 7,926 9,299 Aditya Birla Financial Services 814 977 ABNL 5,267 5,708 Life Insurance 285 140 Vision – Mission 2,666 3,598 Other Financial Service
Slide 44: Consolidated Results (Like-to-Like)
CONSOLIDATED RESULTS (Like-to-Like) Revenue EBITDA Net Profit ABG Snapshot ( ` Crore) ( ` Crore) ( ` Crore) 6,425 5,673 1,781 ABNL Vision – Mission 1,378 333 327 Q4 13% ABNL Structure 29% 2% Key Highlights FY15 FY16 FY15 FY16 FY15 FY16 Like-to-Like1 Reported Like-to-Like1 Reported Like-to-Like1 Repo
Slide 45: Standalone Results (Like-to-Like)
STANDALONE RESULTS (Like-to-Like) Revenue EBITDA Net Profit ABG Snapshot ( ` Crore) ( ` Crore) ( ` Crore) 1,134 1,189 ABNL 181 Vision – Mission Q4 5% 108 62 ABNL Structure 67% 18 248% Key Highlights FY15 FY16 FY15 FY16 FY15 FY16 Like-to-Like1 Reported Like-to-Like1 Reported Like-to-Like1 Reported Ad
Slide 46: Profit & Loss (FY15 and FY16)
PROFIT & LOSS (FY15 and FY16) (₹ Crore) Standalone Profit & Loss Account Consolidated 2014-15 (PY) 2015-16 (CY) 2014-15 (PY) 2015-16 (CY) ABG Snapshot 8,938 5,466 Revenue 26,516 23,129 ABNL Vision – Mission 1,186 846 EBITDA 5,798 6,535 - - Less : NBFC Interest Expenses 1,105 1,600 ABNL Structure 263
Slide 47: Balance Sheet
BALANCE SHEET (₹ Crore) Standalone Balance Sheet Consolidated Mar - 14 Mar - 15 Mar - 16 Mar - 14 Mar - 15 Mar - 16 ABG Snapshot 8,108 8,519 8,559 Net Worth 11,189 12,871 14,535 ABNL - - - Minority Interest 778 802 857 Vision – Mission 3,753 3,688 3,904 Debt 10,893 11,299 13,570 - - - NBFC Borrowing
Slide 48: Transaction Structure
TRANSACTION STRUCTURE Post De- merger & allotment of shares by ABFRL Pre De-merger (As on 27th Jan 2016) Public ABG Snapshot 57.2% 50.4% ABNL Vision – Mission 57.2% ABNL 1 42.8% ABNL ABFRL 3 4 9.1% # ABNL Structure Madura Lifestyle Key Highlights 100% # 72.6% # 27.4% MGLRCL 2 PFRL 42.8% 40.5% Public
Slide 49: Disclaimer
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 pr
Slide 50: Contact Us
Contact Us 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.adityabirl
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