CORPORATE PRESENTATION

Financial Services Group

ADITYA BIRLA NUVO LTD.

MAY 2008
India & the Financial Services Sector

Fast growing economy

Large population & young demographics
Fast growing aspirations
High rate of savings
Financial simpleton
safety over returns
seeking reassurance from a Trusted face
Low penetration
55% of savings lying in bank deposits
Household penetration in Mutual Funds < 5%, Life Insurance < 15%

The Indian Financial Services sector has yet to tap India’s true potential 2
Aditya Birla Financial Services Group : Our Vision

To be a leader and role model in financial services sector with

a broad based and integrated business

3
Aditya Birla Financial Services Group : Our Key Drivers

Product
Distribution
Brand
People
Customer experience

4
Aditya Birla Financial Services Group : Our Structure

Aditya Birla Financial Services Group

Insurance advisory &

Asset Management

Wealth Management

Corporate Finance
Capital Market &
broking services
Life Insurance

Distribution &

One virtual company : Many real businesses

To leverage synergies and be more competitive and cost effective 5

Aditya Birla Financial Services Group : A Focused Approach

Phase 1 : Laying a firm foundation

Build momentum in Life Insurance and Asset Management
Put together a winning team
Set scalable processes
Phase 2 : Setting new goals for other existing business
Distribution & Wealth Management
NBFC and Insurance advisory and broking services
Phase 3 : Exploring new horizons
Mapping our target customer needs and building products/services accordingly

6
Aditya Birla Financial Services Group : Our Strategy

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

STRATEGY EXPANSION DIFFERENTIATION TRANSFORMATION EXCELLENCE

Growing faster People bound Leveraging on Best employer

than the market by a Vision synergies Trusted Brand,
Scaling up Product within across
distribution to innovation financial households in
reach across Speed to services India
markets and market within Risk &
ACTION PLAN channels Aditya Compliance
Consistent and
Product and superior Birla
segment investment Group
expansion performance Sun Life
Potential entry Customer Financial
in new financial engagement Structural
services model changes
segments Capital efficient Outsourcing &
Decentralisation
7
Birla Sun Life Insurance

8
Focus To Achieve Leadership

Key To be amongst top 3 private players

Aspiration and superior value creation for stakeholders
Pioneered Unit Linked Insurance Plan (ULIP) & bancassurance Branches (Nos.)
Tie-ups: 7 banks & 229 corporate agents with 800+ insurance specialists ~ 1000
and relationship managers

Aggressive approach towards strengthening distribution reach 339

across channels 137
44 85
Branch network and Direct Sales Force quadrupled during last two years
to reach 339 branches and 115K agents respectively FY05 FY06 FY07 FY08 FY09E

Further 261 new branches are targeted to roll out by end May’08 Direct Selling Agents (‘000)
Targeting to reach 1000 branches mark and to double direct sales ~ 200
force in FY2008-09
115
Product portfolio strengthened in the year through launch of 10 57
products in individual life segment and 2 products in group business 18
9
Targeting penetration in health, pension and traditional product segments
to fill product gaps and cater all customer profiles
FY05 FY06 FY07 FY08 FY09E
9
Product Launch: 2007-08

Group Launch of Platinum

“Maximizer Launch of Group Gold Plus
Interest Gold Plus- Micro Plus - with
fund” for 4 OTC – Unit II–
Credit- with Investment Insurance Innovative
Existing Saral Linked Investment
Guaranteed Plan for rural highest
Products Jeevan Fund Plan-
returns population NAV fund

“Maximizer
fund” (100 %
Equity fund Multiplier Fund
launched
launched

Apr 07 Jun07 Aug 07 Sep 07 Oct07 Nov’07 Dec’07 Mar’08

Innovative product strategy helped BSLI improve market share in 2007-08

10
Key Highlights : 2007-08 : Outperforming Industry Growth

Strong momentum built Revenues (Rs. Cr.) 4,012

Achieved first year weighted annualised premium of Rs. 2203 Cr.

registering a growth of 131% over Rs. 953 Cr last year
2,069
nd
2 highest growth rate amongst top 7 players 1,399
Total revenues grew at a CAGR of 93% since FY 2003 956
545
New business premium income at Rs. 1,965 Cr. grew by 123% in
FY07-08 over Rs. 882.7 Cr. in FY06-07
FY04 FY05 FY06 FY07 FY08
Renewal Premium up by 46% to Rs. 1,307.2 Cr. in FY07-08
New business Renewals & other income
AUM grew at a CAGR of 81% to Rs. 6,893 Cr. in FY07-08 with 40%
share of equity AUM AUM (Rs. Cr.)
6,893
Realigned organisation and sales structure to bring in higher focus,
improve productivity and to cater to growth 1 %
Focus on building alternate channels G R8
CA 4,020
Tie-ups with new relationships and strengthened relationships with 2,555
existing channel partners
1,333
Project for ‘capacity building for growth’ underway 644 40%
31%
Strong fund performance 22% 29%
16%
Strong support from promoters : Aditya Birla Nuvo and Sun Life Mar'04 Mar'05 Mar'06 Mar'07 Mar'08
Financial infused Rs. 603 Cr. in FY07-08 to fund growth of the business Equity Debt & Liquid 11
Regaining Market Share

6th largest private player in India with 6.6% market share in FY07-08 up from 5.3% in FY06-07

Ranked 4th amongst private players in the month of March 2008 with 8.1% market share

#2
BSLI – Monthly Market Share trend
13.7% amongst private players (%)

#4
8.2%
8.0% 8.2% 8.1%
7.5%
#9 6.1% 6.5% 6.1% 6.1%
5.3% 5.1% 5.2%
3.7% 4.0%

2004-05 2005-06 2006-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08

Source : IRDA
12
Financial Results

Rs. Cr.
2007-08 2006-07 Change (%)
Branches (Nos.) 339 137 147%

Direct Selling Agents (Nos.) 115,153 56,603 103%

Assets Under Management 6,892.7 4,020.0 71%

New Business Premium Income 1,965.0 882.7 123%

Individual business 1,741.0 742.9 134%
Group business 224.0 139.8 60%

First Year Premium 1,926.0 832.3 131%

Renewal Premium 1,307.2 894.0 46%
Single Premium 39.0 50.4 -23%
Less : Reinsurance ceded and service tax (49.1) (41.5)
Total Premium Income (Net) 3,223.1 1,735.2 86%

Revenues 4,012.1 2,068.8 94%

PAT (445.3) (139.7) -219%

Equity Share Capital 1,274.5 671.5 90%

Nuvo’s investment 944.6 498.4 90%

13
Our Enablers

Customer
Segmentation Products
Profitability Identify Segments Fill existing gaps
Cater to needs
Value Creation
Persistency

To be amongst top 3
Distribution
People private players and
Multi Channel
Best Employer superior value creation
for Stakeholders New branches for DSF
Organisation
Recruitment & productivity
Structures

Brand & Marketing Operations

Build Strong Capacity Creation
Franchise Building efficiencies
Leverage customer Customer Service
bases in Group
14
Birla Sun Life Mutual Fund

15
Focus To Achieve Leadership
AUM (Rs. Cr.)
Key To be amongst top 3 players
and superior value creation for stakeholders 45247
Aspiration

Scaling up infrastructure to support growth

Distribution network more than doubled in last one year to reach 78 branches and 18K financial advisors
Investor folios grew by 65% during the year to 1.9 million
Multi Channel non-polarised distribution network
Superior fund performance – 69% of AUM is in top quartile of performance, based on one year returns
Recognised and awarded “Mutual Fund House of the Year” by CNBC TV18-Crisil
Awarded 5 CNBC TV18-Crisil Awards, 2 ICRA awards and 4 Lipper Awards for consistent fund
performance across various asset classes
Branches (Nos.) Financial Advisors (‘000) Investor Folios (Mn)
78 18 1.9
32 8 1.2

FY07 FY08 FY07 FY08 FY07 FY08 16

Investment Performance

Quartile Performance AUM Report – March 2008

March 08- AUM in various Quartiles

180 Days Return (%) I Year Return (%) 3 Year Return (%)
0%

20%
50%
70% 69%
40%

60%

3% 40%
80% 14% 19%

3%
14% 6%
9%
100% 4%
% of Corpus in First Quartile % of Corpus in Second Quartile
% of Corpus in Third Quartile % of Corpus in Fourth Quartile

Report based on only Ranked AUM by Value Research

17
Key Highlights : 2007-08 : Regaining Market Share

5th largest in India with 6.8% share in average domestic AUM in

Mar’08 up from 5.8% share in end of period (EOP) AUM in Mar’07
Total AUM (EOP) (Rs. Cr.)
Achieved 89% growth in last one year
45247
2nd highest AUM growth amongst top 7 players
9%
Only AMC to show positive month on month growth in average G R5 10838
CA
AUM in Mar’08
20830
Total AUM (EOP) grew 4 times in 3 years to Rs. 45,247 Cr. in Apr’08 16424 34409
10915 6536
Includes offshore equity AUM of Rs. 2,543 Cr. in Apr’08 6089
2193 14294
10335
Equity AUM grew 5 times in 3 years to Rs. 10,838 Cr. in Apr’08 8722
Offering 92 Mutual Fund schemes including 2 offshore funds Mar'05 Mar'06 Mar'07 Apr'08

Product portfolio strengthened through launch of new funds Debt & Liquid Equity

4 equity NFOs launched collecting Rs. 2,700 Cr. Source : AMFI

Focus on high margin fixed income funds

18
Market Share / Competitor Highlights
Rs. Cr.
Mar-2008 Growth
Market Mar-2007 Market
MF Players Average Rank over PY Rank
Share % EOP AUM Share %
AUM %*
Reliance 90,938 17.2% 1 96% 46,307 14.2% 1
Pru ICICI 54,322 10.3% 2 43% 37,870 11.6% 2
UTI 48,983 9.3% 3 38% 35,488 10.9% 3
HDFC 44,773 8.5% 4 58% 28,358 8.7% 4
Birla Sun Life 35,906 6.8% 5 89% 19,047 5.8% 6
SBI 29,179 5.5% 6 74% 16,807 5.1% 7
Franklin 26,842 5.1% 7 22% 22,019 6.7% 5
Others 196,763 37.3% 63% 120,492 36.9%
Total 527,706 100.0% 62% 326,388 100.0%
* Growth of Average AUM Mar-08 over EOP AUM Mar-07

Source:AMFI

BSLAMC moved one step up to Rank 5th during the year

19
Financial Results

Rs. Cr.

2007-08 2006-07 Change (%)

Branches (Nos.) 78 32 144%

Investors Folios (Nos. in Lacs) 18.9 11.5 65%

Assets under Management

Domestic 34,864 19,047 83%
Offshore 2,296 1,783 29%
37,160 20,830 78%

Total Income 135.0 95.5 41%

PAT 2.8 14.3 -81%

20
Our Enablers

Distribution ramp-up
20K Point of Sales to 50K Point of Sales
CRM
Alternate channels
Building offshore proposition
PMS

21
Birla Sun Life Distribution

22
Key Highlights : 2007-08 : Creating New Highs

Key To be amongst top 5 players in the wealth management space and to be a leading
Aspiration distributor of financial products

Lines of business
Private Client Group
Channel Partners
Institutional
Insurance
Over 2,50,000 customers country-wide
Nationwide presence with 36 branches (in 29 cities) and over 3800 channel partners
Growth in staff strength
Ranked 6th in terms of AUM under advice
AUM under advise more than doubled to Rs. 12,242 Cr. in Mar’08 from Rs. 4,953 Cr. in Mar’07

23
Financial Results
Rs. Cr.

2007-08 2006-07 Change (%)

Branches (Nos.) 36 13 177%

AUM (Rs. Cr.) 12,242 4,953 147%

Financials
Revenues 37.5 21.0 78%

PAT 2.7 0.7 305%

24
Our Enablers

Expanding presence
Across spectrum of financial products
Across manufacturers
Across markets
Market and customer segmentation
Matching our offerings, accordingly
Technology

25
Birla Global Finance

26
Key Highlights : 2007-08 : Creating New Highs

Key To be among Top 5 NBFCs, by balance sheet and profitability

Aspiration

Lines of business
Loan against Securities
IPO financing
Corporate Finance
Insurance advisory
Overall Portfolio doubled to Rs. 10 billion in FY07-08
Highest ever Loan against Securities portfolio
Highest rating of A1+ assigned by ICRA for short term debts
Highest ever operating profit

27
Financial Results

Rs. Cr.

2007-08 2006-07 Change (%)

Revenues 112.8 84.3 34%

PBT 37.0 22.1 67%

Capital Employed 225.5 98.4 129%

28
Our Enablers

Expanding presence
Across asset product range
Across manufacturers
Across markets
Market and customer segmentation
Matching our offerings, accordingly
Capital

29
Aditya Birla Financial Services Group – Our Today and Tomorrow

Regained Momentum
Building capacity for future growth
Consolidation will give us synergy benefits
Identified the enablers of success

30
Q&A

31
Cautionary Statement

Statements in this “Presentation” describing the Company’s objectives, projections, estimates, expectations or predictions may
be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ
materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include
global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and
pricing in the Company’s principal markets, changes in Government regulations, tax regimes, economic developments within
India and the countries within which the company conducts business and other factors such as litigation and labour
negotiations. The Company assume no responsibility to publicly amend, modify or revise any forward looking statement, on the
basis of any subsequent development, information or events, or otherwise.

Aditya Birla Nuvo Limited

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

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

Website: www.adityabirla.com or www.adityabirlanuvo.com

Email: nuvo.cfd@adityabirla.com 32