Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Merger or Acquisition (February 2021)
33 slides from Reliance Industries's merger presentation, February 2021
Slide 1: Q
Q Reliance Industries Limited
Slide 2: Forward Looking Statement
Q Forward Looking Statement Reliance Industries Limited This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements
Slide 3: Reliance Has Built Three Mega-Growth Engines
Reliance Has Built Three Mega-Growth Engines Which Continue to Create Significant Shareholder Value... Q Reliance Industries Limited ~$36bn Largest ever capital raise in India through rights issue and stake sales in businesses \\, Renee @= @ —96 nalinnee RETAIL RIL Has Created 1.3x More Shareholder
Slide 4: Robust Integration of Environmental, Social and Governance Parameters
...With Robust Integration of Environmental, Social and Q Governance Parameters Across the Group Reliance Industries Limited Environment Social Governance “%, (_ ( ana 11+ VO | /- eoats diversity in skill, iy) +r 3 ender 99° i ae ™ 22+ mm en Numb ar rt ° heresating sageanity Saplings planted hours a
Slide 5: O2C Business Reorganization: Setting the Context
Q Reliance Industries Limited O2C Business Reorganization: Setting the Context RIL's unprecedented growth in the last decade has been driven by significant growth in O2C Business and rapid scale-up of new consumer businesses - Digital and Retail Strong underlying performance of each business has res
Slide 6: Rationale for O2C Business Reorganization
Q Rationale for O2C Business Reorganization Reliance Industries Limited ww Independent growth company enables focused pursuit of opportunities across O2C value chain 6 Enhanced efficiencies through self-sustaining capital structure and dedicated management team C3] Facilitates value creation through
Slide 7: Presentation Sections
Presentation Sections Q Reliance Industries Limited RIL Oil-to-Chemicals (O2C): Unique Fully-Integrated Platform Proposed Reorganization of O2C Financial Performance of O2C in the Context of RIL RIL and O2C Post Reorganization Key Considerations
Slide 8: RIL Oil-to-Chemicals (O2C): Unique Fully-Integrated Platform
[GB RIL Oil-to-Chemicals (02C): Unique Fully-Integrated Platform
Slide 9: O2C Business: World Class Assets of Global Scale
Q O2C Business: World Class Assets of Global Scale... Reliance Industries Limited fr" 1.4MMBPD Crude Refining Capacity ® . 38.4MMT of Petrochemicals Production [| Largest single site refinery complex globally Psy (FY20) a $ 20 Consecutive Years | 4th Outperformance over regional benchmark Largest Pr
Slide 10: Generating Significant Benefits Through Deep Integration
Q ...Generating Significant Benefits Through Deep Integration Ralianica Industries Limited World’s largest and most integrated O2C Complex | Feedstock , i 1 Securit Jamnagar = World’s largest ROGC, with downstream LLDPE, LDPE, MEG plants y Supersite & Top decile refinery performance and top quartile
Slide 11: Margin Capture Across Conversion Chains
Q Reliance Industries Limited Margin Capture Across Conversion Reduced Exposure to Individual Counter-Cyclicality Between Polymers Chains Product Cyclicality and Polyesters Aromatics & Fibre Fuels Polymers Elastomers Intermediates Polyesters & m Gasoil @PE =PBR mPTA mPFY O2C Portfolio Perret mPP =SB
Slide 12: Integrated Pan-India Fuel Retail and Mobility Solutions
Q Reliance Industries Limited Integrated Pan-India Fuel Retail and Mobility Solutions #1 Growth India Expected to be Fastest Growing Fuel Market Globally — £1,400+ Existing Retail Targeted Retail RIL outlet Throughput Outlets i Outlets in Next 5 with respect to Years Industry Average & To be India’s
Slide 13: Proposed Reorganization of O2C
[| Proposed Reorganization of O2C
Slide 14: Shareholding Structure
Q Reliance Industries Limited Shareholding Structure Current Shareholding Structure Promoter Dils Fils Others Promoter Dils Fils Others Group (Public) (Public) (Public) Group (Public) (Public) (Public) 49.14% 12.54% 24.49% 13.83% 49.14% 12.54% 24.49% 13.83% Q Reliance Industries Limited Qe : Relia o
Slide 15: Resultant Corporate Structure of RIL On Appointed Date
Q Reliance Industries Limited Resultant Corporate Structure of RIL On Appointed Date Reliance Industries 100% Subsidiary Subsidiary 66.3%) Subsidiary Segment Segment aT Reliance Retail Jio Platforms A He Clseveletg) Ventures Limited Limited RIIEREKERS Refining & Marketing / Petrochemicals 51% 100% |
Slide 16: Business Perimeter of the Proposed O2C Subsidiary (1/2)
Q Reliance Industries Limited Business Perimeter of the Proposed O2C Subsidiary (1/2) ol Refining and Petrochemicals 6 Fuel Retail Subsidiary . Plants and manufacturing assets at: 51% owned by O2C and 49% by BP rc] Other Subsidiaries © Hoshiarpur —™ Reliance Global Energy Services (Singapore) Pte. L
Slide 17: Business Perimeter of the Proposed O2C Subsidiary (2/2)
Q Reliance Industries Limited Business Perimeter of the Proposed O2C Subsidiary (2/2) D Key Other Assets/ Contracts/ Employees e Key Liabilities @ All trade and other related payables in relation to O2C eth All assets, including storage tanks at Dahej jane = Loan from RIL against consideration for t
Slide 18: Timeline and Approvals
Q Timeline and Approvals Reliance Industries Limited Appointed Date ™ O2C Scheme becomes effective — Appointed Date — 1-Jan-2021 (— rm = SEBI and stock exchanges — approval received = ™ Equity Shareholders and Creditors . ® Regulatory Authorities and Income Tax Authority Approvals Required = NCLT Mu
Slide 19: Financial Performance of O2C in the Context of RIL
Financial Performance of O2C in the Context of RIL
Slide 20: Revenue Profile ($bn)
Revenue Profile ($bn) CAGR: 26% $90.4 $85.6 $674 $ 59.0 i | $ 45.2 $ 64.6 561.3 $ 48.2 $ 38.9 $ 40.0 FY17 FY18 FY19 FY20 FY2t* Q Reliance Industries Limited CAGR: 23% $ 14.0 $12.7 $ 13.0 $10.2 $7.6 $8.7 $62 $7.5 $7.4 , $49 FY17 FY18 FY19 FY20 FY21* IB Consolidated 02 0) Other Businesses sitione Note
Slide 21: Pro-forma RIL (Standalone) Balance Sheet Post Reorganization
Pro-forma RIL (Standalone) Balance Sheet Post Reorganization Hi@) : Reliance as on Appointed Date (01 Jan 2021) Kellance Assets $bn _ Liabilities $bn — & O2C undertaking to be | transferred to a wholly Long Term Assets 45 | Total Equity 45 owned subsidiary at tax net worth — tax neutral for RIL Loan
Slide 22: Pro-forma O2C (Standalone) Balance Sheet as on Appointed Date
Pro-forma O2C (Standalone) Balance Sheet as on Appointed i ] Reliance Date (01 Jan 2021) Tndosties Lined Assets $bn | Liabilities $bn mt 020 to pay tloating rate + interest linked to 1-year Long Term Assets 40 | Total Equity 12 SBI MCLR rate = Long-dated loan with . . | flexibility to structure Net
Slide 23: RIL (Consolidated) Balance Sheet as on Appointed Date
RIL (Consolidated) Balance Sheet as on Appointed Date Q (01 Jan 2021) Reliance Industries Limited Assets $bn _ Liabilities $bn m Investment grade I International (BBB+/ Long Term Assets 122 _ Total Equity 88 Baa2), and domestic (AAA), credit ratings Cash & Equivalents* 30 Non-Controlling Interests 1
Slide 24: RIL and O2C Post Reorganization
4 | RIL and O2C Post Reorganization
Slide 25: RIL After O2C Reorganization
RIL After O2C Reorganization Q Reliance Industries Limited What Remains in RIL ——_---errraSe_—— Existing Businesses and Investments Upstream Oil & Gas Retail, including investments in subsidiaries Digital Services, including investments in subsidiaries O2C, including investments in its subsidiaries
Slide 26: Reliance's Vision to be Net Carbon Zero by 2035
Q Reliance’s Vision to be Net Carbon Zero by 2035 Reliance Industries Limited Opportunity to accelerate New Energy and New Materials businesses based on RIL’s vision of clean and green development Build an optimal mix of reliable, clean and affordable energy and storage using solar, wind and batteri
Slide 27: O2C Strongly Positioned to Capture New Growth Opportunities
Q 12C Strongly Positioned to Capture New Growth Opportunities Pepa" Industries Limited O2C’s goal is to maximize crude to chemicals conversion and create a sustainable, holistic, circular materials feedstock Crude Feedstock High-Value Chemicals End-Products Waste + & > Fg — 3 Waste Recycling 02C Wil
Slide 28: Interaction Between New RIL and O2C
Q Interaction Between New RIL and O2C Reliance Industries Limited e O2C Business Reliance New Energy + C1) Carbon Capture -— Invest in next- New Materials generation carbon capture and storage technologies to convert CO, into useful products and chemicals @ Develop a green energy ecosystem, includin
Slide 29: Key Considerations
5 Key Considerations
Slide 30: Potential Considerations for RIL's Creditors
Q Potential Considerations for RIL’s Creditors Reliance Industries Limited — Creditors get access to cash from all RIL businesses Efficient upstreaming of cash from O2C to RIL Access to — Interest + debt repayments on long-term loan Diversified Cash Flows _ — Dividends Source of Cash ™ O2C cash flow
Slide 31: Four High Growth Engines Driving Value Creation
Four High Growth Engines Driving Value Creation Q Reliance Industries Limited O2C — Growth from high value downstream chemicals and materials Digital - Connectivity and scaling up of digital platforms Retail - Consumer-led growth leveraging technology & omni-channel presence New Material & New Energ
Slide 32: Conclusion: Beneficial for all Stakeholders
Q Reliance Industries Limited Conclusion: Beneficial for all Stakeholders O2C reorganization creates an independent, global scale growth engine for RIL, with strong cash flow generation potential No impact on RIL’s consolidated financials, investment grade international, and domestic AAA credit rati
Slide 33: Growth is Life...
Q Reliance Industries Limited Growth is Life...
Reliance Industries — Merger or Acquisition (February 2021) on 6ix