Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q4 FY2018-19 Earnings Presentation
89 slides from Reliance Industries's earnings presentation, Apr 18, 2019
Slide 1: 4Q FY 2018-19 Financial Results
4Q FY 2018-19 Financial Results 18 April 2019
Slide 2: Forward Looking Statements
Forward Looking Statements 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 that address expectations or
Slide 3: Financial Results: FY19 vs FY18
Financial Results : FY19 vs FY18 % Change ➢ Turnover growth of 44.6% YoY (in ` Crore) FY19 FY18 YoY ▪ Higher volumes in petrochemicals Turnover 622,809 430,731 44.6% ▪ Higher price realisation (Oil price up 22% YoY) Segment EBITDA 87,640 71,232 23.0% ▪ Significant boost from consumer businesses ➢ Re
Slide 4: Consolidated EBITDA bridge: FY19 vs. FY18
Consolidated EBITDA bridge: FY19 vs. FY18 ➢ Record petrochemical performance 8,538 1,609 87,640 90000 ▪ Volume growth of 16% 3,672 80000 11,785 26 ▪ Strong integrated polyester margins led by PX, PTA 71,232 5,952 70000 ➢ Refining margins declined across key markets 60000 ▪ Excess supply, high invent
Slide 5: Consolidated Segment EBITDA: Doubled in Last 5 years
Consolidated Segment EBITDA: Doubled in Last 5 years FY2015 FY2019 90,000 87,640 80,000 7.1% 71,232 1.8% 4.3% 70,000 17.5% 26.3% 60,000 52,544 18.2 49,477 % 46.0% 50,000 7.1% ₹ crore 41,464 40,000 1.9% 26.8 30,000 42.9% % 20,000 R&M Petchem E&P 10,000 Organized retail Digital services Others 0 FY201
Slide 6: Consolidated Financial Results: 4Q FY19
Consolidated Financial Results : 4Q FY19 % Change % Change ➢ YoY revenue growth led by (in ` Crore) 4Q FY19 3Q FY19 4Q FY18 QoQ YoY ▪ Higher petrochemicals volumes (9.4 MMT Turnover 154,110 170,709 129,120 -9.7% 19.4% vs. 9.2 MMT) Segment EBITDA 22,771 22,628 19,950 0.6% 14.1% ▪ Strong growth in Ret
Slide 7: R&M Segment Performance
R & M Segment Performance 11.6 ➢ Resilient GRM, premium over Singapore margins at $ 4.3/bbl FY2019 vs. FY2018 40,000 12 28,990 9.2 ➢ Crude throughput at 68.3 MMT 30,000 23,038 8 20,000 ➢ Higher oil price, weak light distillate cracks, high inventories impacted margins 4 10,000 ➢ Global oil demand up
Slide 8: Petrochemicals Segment Performance
Petrochemicals Segment Performance ➢ Record FY19 EBITDA, up 45.6% YoY 21.9 FY2019 vs. FY2018 50,000 20.6 24 40,000 37,645 ➢ Highest ever production of 37.7 MMT 18 30,000 25,860 12 ▪ Full benefits of ROGC and PX capacity expansion 20,000 6 ➢ EBITDA margin expanded by 130 bps 10,000 - 0 ▪ Strong polye
Slide 9: Oil & Gas Segment Performance
Oil & Gas Segment Performance 32.0 32.8 ➢ Stable EBITDA for the year FY2019 vs. FY2018 2,100 33 1,642 1,668 ▪ Improved price realization partially offset volume declines 1,400 22 ▪ US Shale production 84.7 BCFe, down 34.5% 700 11 ▪ Domestic production 58.9 BCFe, down 25.3% - 0 FY18 FY19 ➢ R-Cluster
Slide 10: Retail Segment Performance
Retail Segment Performance 4.7 ➢ FY19 Revenue ₹ 130,566 crore, up 89% YoY FY2019 vs. FY2018 8,000 5 6,000 3.7 6,201 4 ▪ Robust EBITDA growth of 145% YoY 3 4,000 ➢ 10,415 retail stores (+2,829 stores YoY); 22 Mn. sq. ft. over 6,600 cities 2,529 2 2,000 1 ➢ 8,000+ Digital / Jio stores – added 6 new st
Slide 11: Digital Services Segment Performance
Digital Services Segment Performance (₹ crore) FY19 FY18 ➢ YoY revenues doubled, EBITDA up 2.25x FY2019 vs. FY2018 Gross Revenue 45,782 23,714 ➢ Net adds of 120.1 Mn subscribers in FY19 Optg. Revenue 38,838 20,154 ➢ Strong customer engagement led by network performance, use cases EBITDA 15,102 6,734
Slide 12: Refining & Marketing
Q Reliance Industries Limited Refining & Marketing 12
Slide 13: Performance Highlights
Performance Highlights (₹ crore) FY19 FY18 ➢ Secondary units consistently operated at higher throughputs Revenue 393,988 306,095 ➢ Retail HSD volume up 9% in FY19 GRM ($/bbl) 9.2 11.6 ➢ International Safety Award “Merit from British Safety Council” for EBITDA 23,038 28,990 SEZ refinery EBITDA Margin
Slide 14: Business Environment
Business Environment Dated Brent WTI Dubai ➢ QoQ lower crude price – Brent crude down 6.7% to $63.2/bbl $/bb 90 ▪ Record US crude production at 12 mb/d in Mar’19, +500 kb/d QoQ 80 70 ▪ Crude oil inventory build since end of last quarter 60 ➢ Brent-Dubai spread turned negative during the quarter 50 ▪
Slide 15: Oil Products Demand Growth in 2018
Oil Products Demand Growth in 2018 ➢ Oil product demand growth led by middle distillates Product demand growth in CY18 (kb/d) ➢ Strong gasoil demand growth in the US North Europe Asia Pacific Rest of the America world ▪ Higher shale oil production and firm economic activity Gasoline -10 30 120 10 ➢
Slide 16: Global Refining Margins Environment
Global Refining Margins Environment Benchmark Refining Margins ($/bbl) Benchmark Refining Margins ($/bbl) 3Q FY19 4Q FY19 FY 2018 FY 2019 16 14.2 16 13.0 13.6 14 14 12.8 11.6 12 12 10 8.8 10 9.2 8.2 8 8 7.2 5.9 6.3 5.1 5.6 6 4.3 6 4.9 4 3.2 4 2 2 0 0 US Europe Singapore RIL US Europe Singapore RIL ➢
Slide 17: Regional Business Environment – Light Distillate
Regional Business Environment – Light Distillate Naphtha cracks down QoQ Gasoline cracks weakened QoQ FY 2018 Avg. FY 2019 Avg. FY 2018 Avg. FY 2019 Avg. 4 20 2 15 13.7 0 -2 -0.5 10 -4 -6 4.7 5 3.7 -8 -6.4 -7.5 -10 0 1Q FY18 4Q FY18 2Q FY19 4Q FY19 1Q FY18 4Q FY18 2Q FY19 4Q FY19 ➢ Weighed down by l
Slide 18: Regional Business Environment – Middle Distillate
Regional Business Environment – Middle Distillate Gasoil cracks weakened QoQ Jet/Kero cracks were lower QoQ FY 2018 Avg. FY 2019 Avg. FY 2018 Avg. FY 2019 Avg. 20 20 15.5 15.8 16.1 15.6 15 14.0 15 13.0 10 10 5 5 0 0 1Q FY18 4Q FY18 2Q FY19 4Q FY19 1Q FY18 4Q FY18 2Q FY19 4Q FY19 ➢ High East of Suez
Slide 19: Regional Business Environment
Regional Business Environment Fuel oil cracks weakened QoQ AL-AH Differential narrowed QoQ FY 2018 Avg. FY 2019 Avg. FY 2018 Avg. FY 2019 Avg. 0 4 -0.2 -0.9 2.9 3 2.2 -5 2 1.4 -6.3 1 -10 1Q FY18 4Q FY18 2Q FY19 4Q FY19 0 1Q FY18 4Q FY18 2Q FY19 4Q FY19 ➢ Fuel oil cracks trended lower amid weaker ➢ M
Slide 20: Robust Domestic Fuel Demand Growth
Robust Domestic Fuel Demand Growth RIL refinery product sales YoY 30 3.4% 12.0 25 10.7 20.5 21.2 10.0 9.1 20 9.4% 8.0 15 10.4% 6.0 10 3.3% 4.2 4.2 6.6 7.2 6.1 6.7 4.0 5 2.3 2.0 2.1 1.7 2.0 1.2 1.4 0 MS HSD ATF LPG - Exports Captive Retail/Bulk Other Domestic Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 ➢ Demand
Slide 21: Domestic Marketing
Domestic Marketing ➢ Outperformed industry Y-o-Y volume growth: 16% / 21% in HSD / MS as against 3% / 9% for the industry Retail Outlets ➢ With 1372 outlets, clocked highest ever exit volume at 5.6 Mn KL in Mar 19 ➢ Highest ever TCC volume at 33% of retail HSD Sales exceeding industry average ➢ Reco
Slide 22: Strategic Advantage
Strategic Advantage ➢ BS VI MS & HSD production started to meet specification changes within the NCR region Responsiveness ➢ Optimized Brent linked crude sourcing with narrower Brent-Dubai differentials ➢ Maximized Alkylate and RBOB production based on economics ➢ Increased sales of ULSD to Americas
Slide 23: R&M Business Outlook
R&M Business Outlook ➢ Oil demand is expected to rise by 1.4 mb/d in 2019; driven by growth in the US, China and India ➢ Net refinery capacity additions expected at 1.8 mb/d in 2019 and 0.8 mb/d in 2020; includes large greenfield additions in Asia and Middle East ➢ Recent recovery in gasoline cracks
Slide 24: Petrochemicals: Polymers and Polyesters
Petrochemicals Polymers and Polyesters 24
Slide 25: Petrochemicals: Financial Performance
Petrochemicals: Financial Performance (₹ crore) FY19 FY18 ➢ Turnover growth led by higher volumes across portfolios ➢ Record EBITDA for the year Production (MMT) 37.7 32.5 ▪ Margins up 130 bps, led by strong polyester chain margins Revenue 172,065 125,299 and advantageous light feed cracking EBITDA
Slide 26: Business Environment 4Q FY19
Business Environment 4Q FY19 ➢ Global economy - softening momentum, high uncertainty India Polymer Demand growth (4QFY19 YoY) ➢ Feedstock prices declined, led by weak crude oil prices: 8% 6% 6% 5% ▪ Naphtha: down ~ 10% QoQ, down ~ 12% YoY ▪ Integrated naphtha crackers regained cost advantage ▪ Ethyl
Slide 27: Polymers – Margins Declined in Weak Price Environment
Polymers – Margins Declined in Weak Price Environment PP-Propylene HDPE-Naphtha PVC-Naphtha-EDC PP- Propylene 5 Year Avg HDPE-Naphtha 5 Year Avg PVC-Naphtha-EDC 5 Year Avg 800 800 300 677 668 300 287 590 259 617 249 576 583 237 600 600 515 465 200 410 416 400 400 $/MT $/MT $/MT 100 200 200 0 0 0 4Q
Slide 28: Polyester Chain Margins
Polyester Chain Margins Integrated Polyester Margin ➢ Integrated polyester margins remained strong: 900 *Last 5 year Avg Margin 819 ▪ PX margins firmed up with capacity adds lagging demand in 804 774 800 738 719 CY2018 700 ▪ PTA margins softened but still healthy and above 5-yr avg. 600 500 ▪ MEG ma
Slide 29: Operating Performance
Operating Performance Production (KT) 4Q FY18 3Q FY19 4Q FY19 ➢ RIL Polymer production down 3% QoQ PP 746 763 720 PE 530 571 522 ▪ Planned and unplanned shutdowns in PP and LDPE plant PVC 190 155 200 ▪ Highest ever quarterly production of PVC after TOTAL 1466 1489 1443 de-bottlenecking in the previo
Slide 30: Key Macro Trends to Impact Global Chemical Industry
Key Macro Trends to Impact Global Chemical Industry ➢ Slowing global economy ➢ Emergence of three major oil amidst trade tensions blocks - Saudi Arabia, Russia and US - to drive prices OIL ➢ Global Economy increasingly ➢ Focus on circular economy to ‘Vulnerable’ with reduced impact virgin demand abi
Slide 31: Global Chemical Outlook for FY20 and Beyond
Global Chemical Outlook for FY20 and Beyond ➢ Unprecedented ➢ Utilization rates to drop – ➢ Oil to Chemicals ➢ Earnings to Capacity build up - C2 and PX key emerging plateau Ethylene and ➢ Olefin & Aromatic cycle theme ➢ Coal to Chemicals Paraxylene weakening is a wild card Chains ➢ Global Demand sl
Slide 32: Petchem – Adopting a strategic shift towards the consumer
Petchem – Adopting a strategic shift towards the consumer Specialty Push Value added Pull ➢ Investing in new-age technologies and materials ➢ Shift from “Selling Pellets” to “Selling Solutions” ➢ Sustainability - a key ingredient of our business strategy ➢ Deliver unparalleled customer experience th
Slide 33: Solution and Materials Offerings
Solution and Materials Offerings ➢ Providing end-to-end tailor-made solutions for key industries Renewable Energy Transportation Infrastructure Home Décor Telecom ISRO – GSLV Building robust capabilities in advanced materials to augment customer interface 33
Slide 34: Reliance Polyesters – A Radical Shift in Market Approach
Reliance Polyesters – A Radical Shift in Market Approach Sustainability embedded at the core of our product and solution offering ➢ Global brand partnerships: ➢ Fire-safe home textiles ➢ Creating ‘Most Preferred 12+ global brands ➢ Enhancing home safety Mattress Brand’ ➢ Increasing B2B2C footprint:
Slide 35: Plastics Play a Major Role to Achieve Key UN SDG
Plastics Play a Major Role to Achieve Key UN SDG Access to Clean Water Infrastructure Development Food Preservation Health and Well Being Responsible Consumption Plastics are indispensable….but plastic waste needs to be managed 35
Slide 36: Our Approach towards Sustainability
Our Approach towards Sustainability Innovate (Circular Business Models): Collaborate: ➢ One of the largest recycler of PET bottles (~2 Bn ➢ Led participation of Indian Industry at UNEA-4 bottles) in India Nairobi ➢ Recron® GreenGold – one of the lowest carbon foot- Educate (Communication and Awarene
Slide 37: Demonstrating Impact via Grassroots Initiatives
Demonstrating Impact via Grassroots Initiatives Versova beach clean-up with Afroz Shah ➢ Adjudged by the UN as the biggest beach clean-up project in the world Launched 40 Km plastic waste to road projects at Nagothane ➢ Consumed ~50 MT of plastic waste to accelerate adoption and as proof of concept
Slide 38: Delivering a Unique Customer Experience via Digitalization
Delivering a Unique Customer Experience via Digitalization ➢ CRM Platform to manage demand and customer engagement Digitally signed E2E tracking of invoicing Order Fulfilment on mobility Platform ➢ Mobility apps to enhance customer service ➢ Data science & predictive analytics Segmented Customer ➢ B
Slide 39: Outlook
Outlook ➢ India – Increasingly resilient to global trends ➢ Petchem - Agile and well prepared to proactively face global headwinds ➢ Deliver leading edge materials and innovative solutions to domestic markets ➢ Promote a Circular Economy – position India as a global leader ➢ Digitalization initiativ
Slide 40: Oil & Gas: Domestic Upstream
Oil & Gas Domestic Upstream 40
Slide 41: Domestic E&P - Production Update
Domestic E&P - Production Update 4Q FY19 (JV Production) KG D6 Panna Mukta CBM Gas Production (Bcf) 5.77 12.69 3.09 Oil Production (mmbbl) - 0.97 - Gas realization ($/mmbtu) 3.36 (GCV) 5.73 (NCV) 6.96(GCV) Oil realization ($/bbl) - 61.65 - Note: RIL share of total domestic production at 12.5 BCFe KG
Slide 42: Project Update
Project Update KGD6 ➢ R-Cluster development on track for first gas in 2H FY21 ▪ Drilling and lower completion completed for 4 wells out of 6 wells, 5th well currently in progress ▪ First offshore installation campaign underway and expected to be completed in 1Q FY20 ➢ Satellite Cluster development ▪
Slide 43: Oil & Gas: Shale Gas Operations
Oil & Gas Shale Gas Operations 43
Slide 44: Price Environment: WTI, NGL and HH
Price Environment: WTI, NGL and HH WTI / NGL ➢ QoQ WTI average lower by ~$4.5/bbl at $54.9/bbl in 4Q FY19 ➢ However, oil prices have recovered with WTI at $60+ levels as OPEC+ members continue with their production cuts, tightening the supply and demand balance ▪ Forward curve lifted up QoQ ➢ NGL ba
Slide 45: Business Performance Highlights
Business Performance Highlights % Chg vs. % Chg vs. 4Q FY19 3Q FY19 4Q FY18 FY19 FY18 3Q FY19 FY18 Production (Bcfe) 18.9 20.9 28.7 -10% 84.7 129.3 -34% Revenues ($ MM) 62 78 105 -21% 308 378 -19% EBITDA ($ MM) -8 -1 38 - 23 110 -79% ➢ Blended realization lower by 12% QoQ and by 14% YoY driven by de
Slide 46: Reliance Retail
Q Reliance Industries Limited Retail 46
Slide 47: Reliance Retail Performance
Reliance Retail Performance ➢ 6th fastest growing retailer globally1; Ranked 94th in the list of Global Powers of Retailing1 ➢ One of the World’s fastest store expansion, added ~10 stores a day in last 2 years; crossed 10,000 store milestone ➢ Reliance Retail operates more stores than any other orga
Slide 48: Reliance Retail’s Journey
Reliance Retail’s Journey Reliance Retail Revenues All figures in ₹ Crore Reliance Retail EBITDA 130,566 Revenue CAGR: ➢ Last 5 years: 55% ➢ Last 10 years: 44% 69,198 6,201 33,765 EBITDA CAGR: 17,640 21,075 2,529 10,845 14,556 ➢ Last 5 years: 76% 6,102 7,636 1,179 3,344 4,565 784 857 363 31 -518 -34
Slide 49: Financial Performance
Financial Performance ➢ FY 2018-19 Revenues at ₹ 1,30,566 crore, nearly doubling from FY 2017-18 ➢ FY 2018-19 EBITDA at ₹ 6,201 crore, 2.5x FY18 full year EBITDA ➢ EBITDA margin of 4.7% vs 3.7% last year; Core Retail EBITDA margin at 7.0% vs 6.0% last year ➢ 4Q FY 2018-19 Revenues at ₹ 36,663 crore,
Slide 50: Birds’ Eye View of Reliance Retail’s FY19 Performance
Birds’ Eye View of Reliance Retail’s FY19 Performance >500 million 303 million 11,220 toys (> 350 million) (> 180 million) (8,526 toys) Footfalls across all stores; Web visits on AJIO; Sold every day across Hamleys growth of 44% Y-o-Y growth of 68% Y-o-Y stores; growth of 32% Y-o-Y 8.2 lakh > 5.7 La
Slide 51: Key Performance Highlights
Key Performance Highlights All Figures in ₹ Crore % Change % Change % Change 4QFY18 Metric 4QFY19 3QFY19 FY19 FY18 wrt 3QFY19 wrt 4QFY18 wrt FY18 24,183 Segment Revenue 36,663 35,577 3% 52% 1,30,566 69,198 89% 1,086 EBITDA 1,923 1,680 14% 77% 6,201 2,529 145% 4.5% EBITDA Margin % 5.2% 4.7% 4.7% 3.7%
Slide 52: Contribution from Consumption Baskets
Contribution from Consumption Baskets Revenue Mix – FY19 Revenue Mix – FY18 10.2% 14.6% 17.9% 20.2% 33.5% 33.0% 21.9% 30.0% Grocery Consumer Electronics 8.4% 10.3% Fashion & Lifestyle Connectivity Petro Retail 52
Slide 53: Reliance Retail Store Network
Reliance Retail Store Network Store Presence as on Mar 31, 2019 Reliance Retail Store Count by Region* Mar 31, Mar 31, 2019 2018 North 2,394 1,740 South 2,869 2,130 East 2,299 1,635 West 2,853 2,068 Total 10,415 7,573 Unprecedented Reach: Covers 98% of the country *Does not include Petro Outlets 53
Slide 54: Fashion & Lifestyle – Current Landscape
Fashion & Lifestyle – Current Landscape Indian Apparel & Accessories Market1 (US$ billion) ➢ India’s per capita apparel consumption 1/5th of China2 209 ➢ At 440 million, India has the world’s largest millennial Un-Organized Organized 20% population in absolute terms.2 58 CAGR ➢ Constitute 48% of wor
Slide 55: Fashion & Lifestyle – Reliance Retail’s Presence
Fashion & Lifestyle – Reliance Retail’s Presence Luxury International Partner Brands | The White Crow | AJIO Gold Premium AJIO | M&S | Project Eve | Reliance Jewels Mid Segment Trends | Trends (Small Town) | Trends Woman | Trends Man | Trends Footwear | Footprint | Payless | Vision Express Value Fas
Slide 56: Fashion & Lifestyle – Reliance Retail’s Presence
Fashion & Lifestyle – Reliance Retail’s Presence ➢ Flagship fashion ➢ Leading chain of ➢ Destination for fine ➢ Unique and first of its ➢ Curated fashion chain family footwear stores jewellery kind experiential store platform offering the trendiest styles from ➢ India’s Largest ➢ Offers wide range o
Slide 57: Partner of Choice for Global Fashion Brands
Partner of Choice for Global Fashion Brands 57
Slide 58: Performance Highlights – Fashion & Lifestyle (1/2)
Performance Highlights – Fashion & Lifestyle (1/2) ➢ Added over 200 Trends & Trends Extension stores during the year ➢ Launched 65 small town Trends stores during the year further penetrating in to Tier III/ IV towns1; all stores delivering strong performance ➢ Now operate 676 Trends stores across 3
Slide 59: Performance Highlights – Fashion & Lifestyle (2/2)
Performance Highlights – Fashion & Lifestyle (2/2) ➢ Reliance Retail has a portfolio of over 40 brands from mid-to- premium to luxury segment ➢ Partner Brands occupy >20% of retail store space in top malls of India leveraging access to upscale customers ➢ Hamleys crossed the 75 store milestone and c
Slide 60: Consumer Electronics – Current Landscape
Consumer Electronics – Current Landscape Indian ACE Market1 (Million Units) ➢ Household penetration of consumer durables and electronics in India is 2 lower as compared to other global markets1 8 9 Penetration of Key Categories India China Global 2 18 4 8% 87% 60% 5 12 18 31% 92% 85% 13 250 13% 88%
Slide 61: Consumer Electronics – Reliance Retail’s Presence
Consumer Electronics – Reliance Retail’s Presence ➢ Destination big box consumer ➢ Smaller stores focused on ➢ Full fledged service arm electronics stores offering mobility & ➢ India’s first multi-product, multi- communication devices and ➢ Product experience zones brand and multi-location bouquet o
Slide 62: Performance Highlights – Consumer Electronics
Performance Highlights – Consumer Electronics ➢ Consumer electronics store network continues to grow rapidly ➢ Added 76 Digital stores and 2,219 Jio Stores during the year ➢ Now operate over 8,000 Digital and Jio Stores ➢ Robust growth in retail revenues during the year driven by ➢ Largest network o
Slide 63: Grocery – Current Landscape
Grocery – Current Landscape ➢ Food & grocery is the largest consumption category accounting Indian Grocery Market1 (US$ billion) for 2/3rd of India’s retail market 1,180 Un-Organized Organized 76 21% ➢ Penetration of organised retail is lowest at 4% CAGR ➢ Price sensitive market ➢ Consumers seek fre
Slide 64: Grocery – Reliance Retail’s Presence
Grocery – Reliance Retail’s Presence ➢ Leading neighbourhood ➢ Destination supermarket store ➢ Largest cash & carry chain in grocery store chain dealing in fresh foods, staples, India home & personal care items, ➢ Offers fresh fruits, veggies, ➢ Serving B2B customers apparel and general staples, cer
Slide 65: Performance Highlights - Grocery
Performance Highlights - Grocery ➢ Grocery category witnessed robust growth: ➢ 54 SMART and 17 Fresh stores launched during the year; Now operate 566 Fresh, SMART and Qwikmart stores ➢ Added 3 Reliance Market stores during the year; Now operate 46 stores across 42 cities ➢ Strong growth in customer
Slide 66: Performance Highlights - Petro Retail Owned Outlets
Performance Highlights - Petro Retail Owned Outlets ➢ 516 owned retail outlets operational as of Mar 31, 2019 ➢ Recommissioned 21 outlets during the year ➢ Witnessed strong volume growth across petroleum products ➢ Robust increase in sales to Transconnect members Continues to deliver higher throughp
Slide 67: Summary
Summary ➢ Retail nearly doubled revenue and more than doubled EBITDA during the year ➢ More than doubled Core Retail revenue and EBITDA ➢ Core Retail EBITDA margin improves to 7.0% in FY 2018-19 vs 6.0% last year ➢ Store expansion and growth in traffic resulted in a robust year ➢ Well rounded growth
Slide 68: Digital Services
Digital Services
Slide 69: Highlights
Highlights 1. 1 Subscriber Base crosses 300 million – fastest operator globally to reach this milestone ▪ Average net adds of > 10 million per month in FY 18-19 2. 2 Customer engagement metrics continue to increase – 10.9GB/ user/ month and 823 minutes of VOLTE voice/ user/ month 3. 3 Strong Financi
Slide 70: Jio’s mission is to connect everyone and everything, everywhere
Jio’s mission is to connect everyone and everything, everywhere – always at the highest quality and the most affordable price Consistent Scale up of Subscriber Base 33.2 million Gross adds in Q4 306.7 million Subscribers as of Mar’19 138.1 million Fastest to reach 300 million milestone Gross adds in
Slide 71: Key Operating Metrics - Trends
Key Operating Metrics - Trends Key KPIs 4QFY19 3QFY19 4QFY18 QoQ YoY ➢ Subscriber growth stays Growth Growth healthy Subscriber base 306.7 280.1 186.6 9.5% 64.4% (million) ✓ Net adds during the Net subscriber addition quarter at 26.6 million 26.6 27.9 26.5 -4.5% 0.4% (million) ➢ Double digit volume
Slide 72: Strong Financial Performance - Sustained Growth
Strong Financial Performance - Sustained Growth 1.8x growth in Operating Revenue 11,106 10,383 3.0x growth in Ebitda 9,240 8,109 6,879 7,128 6,147 Rs crore 4,053 4,329 3,147 3,573 2,628 2,694 1,443 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Op Revenue EBITDA ➢ Strong revenue growth led by cont
Slide 73: Unprecedented Growth To Market Leadership
Unprecedented Growth To Market Leadership 1 Mobile broadband subscriber market share 65% 4G sub share 56.0% 54.4% 50.2% Subscriber addition continues to be 46.4% 47.3% 45.3% robust and has beaten all expectations Higher share of Smartphone users JioPhone users see value in data offering Sep-17 Dec-1
Slide 74: Unprecedented Growth To Market Leadership
Unprecedented Growth To Market Leadership 2 AGR RMS approaching ~40% Best-in-class use cases drive customer 40.0% 37.8% engagement 33.7% 29.6% Jio network carried ~71% of 4G data 25.5% traffic in India during CY18 19.7% 13.9% Continued subscriber traction with industry leading ARPU Market share gain
Slide 75: Unprecedented Growth To Market Leadership
Unprecedented Growth To Market Leadership 3 Dec’17: #2 in 10 out of 22 circles Dec’18: #1 in 13 out of 22 circles Circle wise AGR Ranking of Jio Legend: Legend: Rank 1 in circle Rank 1 in circle Rank 2 Rank 2 Rank 3/4 Rank 3 Source: TRAI On track for market leadership across circles 75
Slide 76: Tapping Into Rural Growth Opportunity
Tapping Into Rural Growth Opportunity Large headroom in rural internet penetration Rural broadband penetration is even Rural mobile penetration % Rural internet penetration % lower at ~19% 58.5% 59.2% 56.3% 50.8% Affordable devices to drive adoption 48.1% Deeper 4G coverage drives first time 23.9% 2
Slide 77: Largest and Most Efficient Mobile Data Network
Largest and Most Efficient Mobile Data network 319 crore GB / month 11%+ QoQ growth Jio’s Download Speed - Best in the Industry 25 2x Industry Avg. Download Speed (Mbps) 20 15 805 crore mins / day 17%+ QoQ growth 10 5 0 1 BTS added/ minute* Coverage and Jio Operator 1 Operator 2 Operator 3 (+ small
Slide 78: Hathway & Den Acquisition Update
Hathway & Den Acquisition Update ➢ Open offer completed for Hathway, GTPL Hathway and Den ➢ RIL and affiliates now hold 72.0% equity stake in Hathway Cable & Datacom Ltd. and 78.1% equity stake in Den Networks ➢ Go-to-market strategy for the combined franchise in collaboration with 27,000+ LCO and d
Slide 79: Digital Connectivity – Backbone for Tech Platforms
Digital Connectivity – Backbone for Tech Platforms Media & New Commerce Education Healthcare Agriculture Entertainment ▪ O2O platform ▪ Digitally enable ▪ Overcome deficit ▪ Combine digital ▪ JioTV ▪ Enable 20 million education to of physical infra tools with ▪ JioCinema small merchants overcome inf
Slide 80: Enhancing the Jio Digital Suite of Services
Enhancing the Jio Digital Suite of Services ➢ Full service app → Check usage, Recharge/ Payments, Activation/ De-activation, Loyalty, Virtual Assistant ➢ Power in the hands of customers; all services and information available though a single login My Jio ➢ Widest user base across self-care apps glob
Slide 81: India’s Leading Music Streaming Platform
India’s Leading Music Streaming Platform ➢ JioSaavn is the first media OTT App in the Jio ecosystem ➢ Fastest growing streaming platform in India ➢ Recognized by Fast Company as one of the Most Innovative Companies of 2019 (JioSaavn listed as #1 in India) ➢ Global Collaborations with Leading Artists
Slide 82: Partnering To Create The Digital Ecosystem
Partnering To Create The Digital Ecosystem ➢ Unique data driven education services platform Embibe ➢ End-to-End voice technology stack for a multilingual experience ➢ Leadership in 5G, IoT and open source architecture adoption ➢ India’s largest AI assistant company across chat, voice and vernacular
Slide 83: Tower & Fiber Demerger Update
Tower & Fiber Demerger Update
Slide 84: Demerger of Fiber and Tower Assets
Demerger of Fiber and Tower Assets Transaction ➢ Transfer of fiber and tower assets into two separate companies (SPV), effective 31-Mar-2019 ▪ Scheme of Arrangement approved by Hon’ble NCLT Ahmedabad on 20-Mar-2019 ➢ Majority equity share capital of the SPVs transferred to separate SEBI registered I
Slide 85: Key Considerations
Key Considerations RJIL will be anchor tenant; maintain strategic advantage ➢ RJIL as anchor tenant for all the towers; long-term anchor contract for ~50% fiber pairs ➢ Robust 20-year contractual arrangement in place: ▪ Transparent pricing mechanism ▪ Right of First Refusal and preferred SLA terms ▪
Slide 86: Asset Details
Asset Details ➢ ~ 7 lac route km, being increased to ~ 11 lac route km, of built and under-development fiber Largest portfolio ➢ Significant proportion is intra-city and underground of independent ➢ Average age of less than 3 years fiber assets ➢ Architectured for FTTx and future technologies (5G an
Slide 87: InvIT Structure
InvIT Structure Sponsor: Reliance Reliance Industrial Investments Co-Sponsors and Other Unit Holders and Holdings Limited (RIIHL) Trustee Axis Trusteeship Services Limited InvIT Investment Manager Infinite India Investment Management Unit money Majority Limited (IIIML) injected as debt equity owners
Slide 88: Transaction drives significant deleveraging
Transaction drives significant deleveraging (Rs '000 crore) Proforma Balance Sheet JDFPL RJIPL Total a Difference between fair value and cost price Assets 166.4 36.8 203.3 allocated as Preference Shares to RIL Share Capital Fair value of JDFPL of Rs 165K crore based on Equity Shares 0.5 0.2 0.7 stud
Slide 89: Growth is Life....
Q Reliance Industries Limited Growth is Life.... 89
Reliance Industries — Q4 FY2018-19 Earnings Presentation on 6ix