Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q2 FY2015-16 Earnings Presentation
97 slides from Reliance Industries's earnings presentation, Oct 16, 2015
Slide 1: 2Q FY 2015-16 Financial Results
2Q FY 2015-16 Financial Results 16 October 2015
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
Financial Results 3 www.ril.com
Slide 4: Consolidated Financial Results: 2Q FY16
Consolidated Financial Results : 2Q FY16 % Change % Change 1Q FY16 (in ` Crore) 2Q FY16 2Q FY15 Y-o-Y Q-o-Q 83,064 T urnover 75,117 113,396 -33.8% -9.6% 7,967 Segment EBIT 8,579 7,394 16.0% 7.7% Net Profit (ex cl. 6,222 6,468 5,972 8.3% 4.0% ex ceptional item) 6,222 Net Profit 6,720 5,972 12.5% 8.0%
Slide 5: Consolidated Segment Revenue: 2Q FY16
Consolidated Segment Revenue : 2Q FY16 % Change % Change 1Q FY16 (in ` Crore) 2Q FY16 2Q FY15 Y-o-Y Q-o-Q 68,729 Refining 60,768 1,03,590 -41.3% -11.6% 20,858 Petrochemicals 21,239 26,651 -20.3% 1.8% 2,057 Oil & Gas 2,067 3,002 -31.1% 0.5% 4,698 Organised Retail 5,091 4,167 22.2% 8.4% 2,579 Others 2
Slide 6: Consolidated Segment EBIT Mix
Consolidated Segment EBIT Mix 2Q FY16 (` crore) 2Q FY15 (` crore) 242 117 228 99 272 818 2,531 3844 5,461 2361 Refining Petrochemicals Oil & Gas Retail Others Refining Petrochemicals Oil & Gas Retail Others Overall segment EBIT up 16% YoY to ` 8,579 crore Share of Refining EBIT increased sharply
Slide 7: R & M Segment Performance
R & M Segment Performance Highest ever quarterly EBIT of ` 5,461 crore, up 42.1% YoY and 4.0% QoQ EBIT (` crore) GRM ($/bbl) 10.6 GRM of $ 10.6/bbl – highest in last seven 6,000 10.4 5,252 5,461 12 years 5,000 8.3 10 4,000 3,844 8 Strong gasoline cracks (+47% YoY) 3,000 6 Robust risk managem
Slide 8: Petrochemicals Segment Performance
Petrochemicals Segment Performance EBIT of ` 2,531 crore, up 7.2 % YoY and 8.3% QoQ EBIT (` crore) EBIT Margin (%) Sharp improvement in EBIT margin at 4,000 11.9 14 11.2 12 11.9% 3,000 8.9 2,361 2,531 10 2,338 Improved profitability for naphtha 2,000 8 6 cracking 4 1,000 2 Stable polymer and
Slide 9: Oil & Gas Segment Performance
Oil & Gas Segment Performance EBIT at ` 242 crore US Shale (` crore) Domestic (` crore) EBIT Margin (%) 2Q FY16 financials include: 1,300 27.2% 30.0% Gain on sale of investment (net of 1,100 818 25.0% taxes), in EFS Midstream of ` 2,911 900 20.0% 700 11.7% 15.0% crore 500 Provision for impai
Slide 10: Retail Segment Performance
Retail Segment Performance Retail EBIT at ` 117 crore, up 18% YoY Revenue momentum sustained – Turnover EBIT (` crore) EBIT Margin (%) growth of 22% to ` 5,091 crore 200 3 2.4 2.4 Led by strong growth in Digital and Fashion 2.3 & Lifestyle segment 111 117 2 99 LFL growth of up to 16 % across
Slide 11: Consolidated Net Debt
Consolidated Net Debt Gross Debt ` 172,765 crore (higher by ` 1,951 crore) Cash & Cash Equivalent ` 85,720 crore (lower by ` 1,671 crore) Net Debt ` 87,045 crore (higher by ` 3,622 crore) (Comparisons are w.r.t. 30th June 2015) 11 www.ril.com
Slide 12: Refining & Marketing
Refining & Marketing 12 www.ril.com
Slide 13: Performance Highlights: 2Q FY 2015-16
Performance Highlights : 2Q FY 2015-16 2Q FY16 GRM of $ 10.6/bbl, highest in last 7 years 12.0 10.4 10.6 6000 10.1 10.0 Record EBIT of ` 5,461 crore 8.3 8.0 7.3 4000 Crude processed : 17.1 MMT, operating rate of 110% (` crore) (($/bbl) 6.0 Strong gasoline cracks and active feedstock 4.0 2000
Slide 14: Business Environment
Business Environment Strong growth in global oil demand 2015 demand growth expected at ~1.8 mb/d compared to 2014 growth of 0.8 mb/d Low oil prices stimulating oil demand growth, despite uncertainty in global economic growth Crude prices weakened QoQ on oversupply Non OPEC supply growth of
Slide 15: Global Refining Margins
Global Refining Margins ($/BBL) 2QFY15 1QFY16 2QFY16 21 20.1 20.3 18 15 12 11.0 10.4 10.6 9 8.1 7.9 8.0 8.3 5.6 6.3 6 4.8 3 0 US E UROP E SIN GAP ORE RIL Singapore refining margins weakened QoQ due to: Seasonally weaker middle distillates, sharp decline in fuel oil cracks Relative strength in
Slide 16: Light Distillates Cracks: Sustained Strength
Light Distillates Cracks : Sustained Strength $/bbl Naphtha Cracks ($/bbl) Gasoline Cracks 17 35 11 28 5 21 -1 14 -7 7 -13 0 US NW Europe Singapore US NW Europe Singapore Naphtha cracks showed strength during the Gasoline cracks remained strong during the quarter quarter, Strong domestic deman
Slide 17: Middle Distillates Cracks: Seasonally Weak
Middle Distillates Cracks : Seasonally Weak ($/bbl) Gasoil Cracks ($/bbl) Jet Kero Cracks 25 25 20 20 15 15 10 10 5 5 0 0 US NW Europe Singapore US NW Europe Singapore Gasoil cracks started lower and improved Jet/Kero cracks also started low and strengthened through the quarter during the quarte
Slide 18: Fuel Oil Cracks & Crude Differentials: Favourable
Fuel Oil Cracks & Crude Differentials : Favourable ($/bbl) FO Cracks Fuel Oil cracks weakened QoQ 0 -4 High supplies and stocks due to higher -8 refinery runs -12 Poor demand growth with smaller, less -16 complex Chinese refineries shifting slowly to US NW Europe Singapore crude AL-AH differ
Slide 19: Strategic Advantage – Crude
Strategic Advantage – Crude Superior configuration provides flexibility to process wide range of crudes – key source of competitive strength Focus on processing of opportunity crudes for higher feedstock flexibility Responded to volatility in Brent-Dubai delta, by processing more Brent linked
Slide 20: Strategic Advantage – Products
Strategic Advantage – Products Wide flexibility in product mix and grades, global reach in product placement – principal factors giving competitive edge to Jamnagar complex Highest ever quarterly Gasoline + Alky production (4.0 MMT) to take advantage of strong gasoline cracks, with higher Alkyla
Slide 21: Crude and Product Cracks – Key Indicators
Crude and Product Cracks – Key Indicators Crude and Asian Product Y-o-Y Q-o-Q 2Q FY16 2Q FY15 1QFY16 Cracks ($/bbl) Change Change Dubai 49.8 101.5 -51.7 61.3 -11.5 Dt Brent-Dubai 0.5 0.4 0.1 0.6 -0.1 Asian L-H Diff 2.7 4.8 -2.1 3.4 -0.7 Naphtha -1.2 -1.6 0.4 -0.5 -0.7 Gasoline 19.4 13.2 6.2 19.8 -0.
Slide 22: Domestic Marketing
Domestic Marketing Restart of entire network of 1400 outlets planned post deregulation Over 600 retail outlets operational - remaining at various stages of commissioning Unique Value Added Services and aggressive consumer schemes rolled out Fleet Management Program providing better Fleet Con
Slide 23: Product Placement in Domestic Market
Product Placement in Domestic Market India Demand (in KT) Refinery Sales (KT) 2Q FY16 2QFY15 2Q FY16 18000 Exports Captive Domestic (Bulk + PSU + Industrial) 15000 12000 9000 3,308 6000 2,746 3000 11,100 0 Positive trend for transportation fuel demand Refinery Product Sales: Robust growth in g
Slide 24: Petcoke Gasification Project Progress
Petcoke Gasification Project Progress Round-the-clock working at construction site Construction resources maximised (125,000 plus on site) Erection of super-heavy lift equipment completed (Reactors, Cold Box, AGR columns, Super heaters, ASU compressors etc) Focus continues on fast track comm
Slide 25: Gasification Project in Pictures
Gasification Project in Pictures Acid Gas removal columns Super heaters Gasifier super structure ASU cold box 25 www.ril.com
Slide 26: R&M Business Outlook – 2015
R&M Business Outlook – 2015 Global oil demand growth is expected to reach a five-year high of 1.8 mb/d in 2015 Growth in mature economies is supportive of global growth US and parts of European China likely to continue with economic stimulus Indian economy looks robust Some potential for
Slide 27: Petrochemicals – Opening Remarks
Petrochemicals – Opening Remarks 27 www.ril.com
Slide 28: Global Macro Environment
Global Macro Environment Crude and Naphtha remained volatile through the quarter amidst mixed global trends Crude down by ~19%; Naphtha down by ~ 20% QoQ Asian ethylene margins remained strong Upside aided by healthy Chinese and regional demand MTO and PDH projects continue to be delayed a
Slide 29: Global Ethylene: Demand-Supply
Global Ethylene: Demand-Supply (In MMTPA) Demand Inc. Dem Capacity Inc. Cap Oper. Rate 200 2015-2020E: 91% Incremental Demand Growth: 4% 180 Incremental Capacity Growth: 3% 90% 160 89% 140 88% 120 87% 100 86% 80 85% 60 40 84% 20 83% 0 82% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Global
Slide 30: Ethylene Cash Cost Comparison
Ethylene Cash Cost Comparison (In $/MT ) Mar-13 Mar-14 Mar-15 Aug-15 1400 1299 1246 1200 1072 983 1000 831 774 800 729 688 631 600 565 507 400 193 213 185 197 180 194 197 200 154 150 78 76 89 96 0 Asia Naphtha Europe Naphtha China CTO US Ethane Iran Ethane Saudi Ethane With oil prices hovering at ~$
Slide 31: Ethane Project – Update
Ethane Project – Update Activities for all key components of the project progressing as per plan Construction of US Ethane loading terminal Vessel building Jetty modification Import terminal at Dahej Dahej-Nagothane pipeline On track for completion by December 2016 31 www.ril.com
Slide 32: Ethane Project: Cryogenic Facility at the US Terminal
Ethane Project: Cryogenic Facility at the US Terminal 32 www.ril.com
Slide 33: Ethane Project – Loading Jetty at US Terminal
Ethane Project – Loading Jetty at US Terminal 33 www.ril.com
Slide 34: Ethane Project – Cryogenic Tank at Dahej
Ethane Project – Cryogenic Tank at Dahej 34 www.ril.com
Slide 35: Ethane Project – Cryogenic Tank at Dahej Inner Roof Dome
Ethane Project – Cryogenic Tank at Dahej Inner Roof Dome 35 www.ril.com
Slide 36: ROGC Project – Overview
ROGC Project – Overview ROGC (Refinery Off Gas Cracker) project salient features Utilize off gases from various units of Refinery complex Unique integration of Petrochemicals & Refining Produce 1.5 MMTPA of Ethylene - feedstock for MEG, LDPE & LLDPE plants Construction activities in full s
Slide 37: ROGC Project – Latest Site Picture
ROGC Project – Latest Site Picture Furnace and pipe rack Piping and Equipment erection 37 www.ril.com
Slide 38: Overview Petrochemicals Performance
Overview Petrochemicals Performance Low prices facilitating strong demand growth in India RIL investment strategy is focused to capture polyester and polymer chain demand growth and ensure feedstock security Polymer segment continued to exhibit robust performance with high margins and strong g
Slide 39: Polymer Chain
Polymer Chain 39 www.ril.com
Slide 40: Business Environment – Polymer Chain
Business Environment – Polymer Chain Sustained increase in demand has been witnessed across the globe, with Asia being the major growth market Asia's Polymer demand share (as a % of global demand) has increased from 48% in 2010 to 53% in 2015 India is the second largest contributor to Polymer
Slide 41: Price Movement – SE Asia
Price Movement – SE Asia % Change % Change $/MT 2Q FY15 1Q FY16 2Q FY16 Q-o-Q Y-o-Y Oil - Dubai ($/bbl) 101 61 50 -19% -51% Naphtha (MOPS) 899 548 441 -20% -51% Ethylene 1484 1409 964 -32% -35% Propylene 1282 980 757 -23% -41% EDC 439 364 319 -13% -27% HDPE 1581 1355 1231 -9% -22% PP 1539 1319 1079
Slide 42: Polymer Delta Scenario – SE Asia
Polymer Delta Scenario – SE Asia Delta in $/MT PP- Propylene 5 Year Avg. HDPE-Naphtha 5 Year Avg. 400 1000 339 323 807 791 800 677 300 258 600 200 400 100 200 0 0 2Q FY15 1Q FY16 2Q FY16 2Q FY15 1Q FY16 2Q FY16 PVC-Nap-EDC 5 Year Avg. On Q-o-Q basis 500 454 432 450 PP deltas continue to remain hig
Slide 43: Demand Growth & RIL Operational Performance
Demand Growth & RIL Operational Performance Demand Growth ( 1H FY16 vs. 1H FY15)* RIL Production 20% 18% India China 14% (in MMT) 1H FY15 1H FY16 15% 12% 11% PP 1.4 1.4 10% 8% 7% PE 0.5 0.5 5% 5% 3% PVC 0.3 0.4 0% TOTAL 2.2 2.3 PE PP PVC Polymer 1H FY16 Vs. 1H FY15: RIL Polymer production was high
Slide 44: Geo-synthetics – An Infrastructure Enabler
Geo-synthetics – An Infrastructure Enabler Market Potential: ~ 150 KTPA Railways Sector (30 KTPA) Road Sector (100 KTPA) Costal & River Sector (20 KTPA) Road Sector Geo-composite as an item for Overlay Application getting incorporated in Indian SORs Polypropylene Geo-composites/ Paving
Slide 45: Business Outlook – Polymer Chain
Business Outlook – Polymer Chain Global Ethylene demand-supply to remain favorable through 2017 Start-ups/ Delays of US gas based crackers to impact balance beyond 2018 Propylene market is expected to remain long in Asia with new capacities being added Sustained lower oil prices to improve t
Slide 46: Elastomers
0 Elastomers www. ril.com 46
Slide 47: Business Environment - Elastomers
Business Environment - Elastomers Global elastomer demand expected to remain subdued in 2015 – with uncertainty in global demand for Automotive Sector Fall in oil price (19%) QoQ forced Elastomer producers to keep lean inventory and cut down operating rates in light of weak market conditions I
Slide 48: Business Outlook - Elastomers
Business Outlook - Elastomers PBR New PBR capacities (~ 200 KTPA) in Asia operational during 1H FY16 Global demand expected to grow by 3% to 3.5 MMT in FY16 Demand in India expected to grow by 10% in FY16 RIL share of domestic demand firmed up based on increased availability of product from
Slide 49: Polyester Chain
Polyester Chain 49 www.ril.com
Slide 50: Business Environment: Polyester Chain
Business Environment: Polyester Chain Volatility in crude oil prices resulted in cautious downstream buying Asian polyester producers currently working on low inventories Better discipline helped producers to maintain pricing power, aiding margins PSF consumption in US remained healthy Hea
Slide 51: Price Movement – NE Asia
Price Movement – NE Asia 2Q FY15 1Q FY16 2Q FY16 % Change $/MT Avg. Avg. Avg. Q-o-Q Y-o-Y Oil - Dubai ($/bbl) 101 61 50 -19% -51% Naphtha (MOPS) 899 548 441 -20% -51% PX 1,350 924 826 -11% -39% PTA 1,007 742 634 -15% -37% MEG 972 943 771 -18% -21% POY 1,564 1,197 1,044 -13% -33% PSF 1,383 1,144 1,03
Slide 52: Chinese Inventory Dynamics
Chinese Inventory Dynamics No. of days Chinese Inventory (Days) 30 PSF POY DTY FDY 25 20 15 10 5 0 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Inventory drawdown to improve margins with markets strengthening 52 www.ril.com Source: CCFGroup
Slide 53: Asian Polyester Chain (2014-2017)
Asian Polyester Chain (2014-2017) (In MMTPA) Polyester production PTA capacity addition PX capacity addition 1 .1 1.3 8 1.8 1.5 3 2 3 68 59 59 54 41 33 2014 2015 2016 2017 2017 2014 2015 2016 2017 2017 2014 2015 2016 2017 2017 Steady polyester growth and slower PTA capacity additions through 2017
Slide 54: India Polyester Chain (2014-2017)
India Polyester Chain (2014-2017) (In MMTPA) Polyester production PTA capacity addition PX capacity addition .3 .3 .5 .8 2 .6 1 1.7 .5 7 7 5.5 6 4 3 2014 2015 2016 2017 2017 2014 2015 2016 2017 2017 2014 2015 2016 2017 2017 Adequate feedstock availability to secure capacity growth Strengthening
Slide 55: RIL Expansion for Strategic Growth across Polyester Chain
RIL Expansion for Strategic Growth across Polyester Chain RIL Capacity before expansion at RIL Capacity after expansion to 2010-15 demand growth levels meet 2015-20 demand growth Polyester & FID Growth Pre & Post Expansion MEG(0.7) MEG (1.5) 500 400 PX(4.5) Detla (USD/MT) PX(2.2) 300 PET(0.5) PET(1.
Slide 56: Intermediates Delta Scenario
Intermediates Delta Scenario Delta in USD/MT PX - Naphtha 5 Year Avg. PTA - PX 5 Year Avg. 500 200 437 400 361 361 150 133 116 300 100 89 200 50 100 0 0 2Q FY15 1Q FY16 2Q FY16 2Q FY15 1Q FY16 2Q FY16 MEG - Naphtha 5 Year Avg. PX operation rationalization helped maintain 600 571 463 margins 400 37
Slide 57: Polyester Delta Scenario
Polyester Delta Scenario Delta in USD/MT POY/PTA-MEG 5 Year Avg. PSF/PTA-MEG 5 Year Avg. 400 250 358 214 200 177 172 300 235 233 150 200 100 100 50 0 0 2Q FY15 1Q FY16 2Q FY16 2Q FY15 1Q FY16 2Q FY16 PET/PTA-MEG 5 Year Avg. 200 Lower polyester prices supported 150 145 demand growth 119 118 Polye
Slide 58: Domestic Polyester Demand
Domestic Polyester Demand Polyester markets witnessed slower than Demand Growth 1H FY16 Vs. 1H FY15 expected growth 7% Liquidity crunch remained a major setback to buying decisions Demand started to surface for winter wear Power situation in south India has improved, 2% aiding PSF demand. Su
Slide 59: RIL Operational Highlights
RIL Operational Highlights Production (KT) 1H FY15 1H FY16 Production (KT) 1H FY15 1H FY16 PX 1046 1152 POY 434 392 PTA 1026 1418 PSF 308 304 MEG 323 357 PET 199 359 TOTAL 2395 2927 TOTAL 941 1055 Higher YoY intermediates production owing to PTA plant start up and PX turnaround last year PET exp
Slide 60: Business Outlook – Polyester Chain
Business Outlook – Polyester Chain Lower prices across the polyester chain has improved the competitiveness Supporting end use substitution in textile applications Gradual growth in western economies is likely to keep the demand improving steadily Supportive Govt. policies and healthy domest
Slide 61: Oil and Gas – Exploration and Production
Oil and Gas – Exploration and Production 61 www.ril.com
Slide 62: KG-D6 – Production Update
KG-D6 – Production Update Gas (BCF) Oil & Condensate (mmbbl) 50 Oil (MMBbl) Condensate (MMBbl) 40.6 0.6 40 36.5 37.0 0.51 0.5 0.44 30 0.39 0.4 20 0.3 0.2 10 0.07 0.08 0.08 0.1 0 0 2Q FY 15 1Q FY 16 2Q FY 16 2Q FY 15 1Q FY 16 2Q FY 16 KG-D6 averaged at 11.4 MMSCMD of gas and Average crude oil pri
Slide 63: KG-D6 – Key Project update
KG-D6 – Key Project update Production augmentation through activation of ceased wells D1-D3 Work-over campaign: Well B7 and A1 put on production in July 2015; D1-D3 Combined production from both the wells is currently ~1 MMSCMD Production sustenance of D1-D3 through Well(s) management to mitig
Slide 64: Panna-Mukta & Tapti – Production Update
Panna-Mukta & Tapti – Production Update Gas (BCF) Oil/Condensates (mmbbl) 20 2 1.88 17.2 1.76 16.5 16.7 1.56 16 1.6 12 1.2 8 0.8 3.9 4 1.9 0.4 0.6 0.06 0.04 0.03 0 0 2Q FY 15 1Q FY 16 2Q FY 16 2Q FY 15 1Q FY 16 2Q FY 16 Panna Mukta Tapti Panna Mukta Tapti Production from Tapti lower on account of
Slide 65: Other Block Updates
Other Block Updates Panna-Mukta : 5 work overs have been planned in 2H FY16; expected incremental gain ~1,000 BOPD Techno-economic feasibility study in progress for additional infill wells in Panna-B-zone and Mukta-B area for drilling in FY17/18 Commissioning of MB facilities completed 1Q FY
Slide 66: CBM – Field Development
CBM – Field Development Phase-1 development nearing completion; First gas expected by end 3Q FY16 Start-up plan 105 number of well-sites handed over to operations and are ready to flow in gas Development Drilling of more than 200 wells, construction of two Gas Gathering Stations and Program 8
Slide 67: CBM Field Development – Progress Photograph
CBM Field Development – Progress Photograph 67 www.ril.com
Slide 68: CBM – Pipeline Progress
CBM – Pipeline Progress Shahdol - Phulpur pipeline is expected to get completed by 3Q FY16 RoU for total scope of 302 km is handed over to pipeline construction contractors Total 299 Km of pipeline laying activity completed All river and canal crossings are completed Procurement, ordering
Slide 69: Shale Gas Business
Shale Gas Business 69 www.ril.com
Slide 70: Price Environment: Natural Gas
Price Environment: Natural Gas US gas production stable around 72-73 Bcf/d in 3Q’15 US Natural Gas Inventory Levels (Bcf) NE US production still growing, but decline in other regions Exports to Mexico on rise; Gas power burn at all time high (of 38.6 Bcf/d) in Jul’15 HH prices range bound (a
Slide 71: Price Environment: WTI & NGL
Price Environment : WTI & NGL WTI: WTI Crude Oil Price Prices remained volatile and settled sharply lower. WTI averaged 20% lower QoQ at $46.4/Bbl in 3QCY15; down 52% YoY Strong OPEC supplies (led by Saudi & Iraq), negative macro news (China & Iran) and impending refinery maintenance season we
Slide 72: Business Performance Highlights
Business Performance Highlights % Chg. Vs. % Chg. Vs. 2Q FY16 1Q FY16 2Q FY15 1HFY16 1HFY15 2Q FY15 1HFY15 Production (Bcfe) 51.0 49.3 49.8 2% 100.3 98.4 2% Revenues ($ MM) 117 141 244 -52% 258 514 -50% EBITDA* ($ MM) 63 86 202 -69% 149 403 -63% *Excludes EFS gains in 2Q FY16 Average Realisation 8.0
Slide 73: Financial & Operating Performance
Financial & Operating Performance Rationalized Capex under Macro Headwinds Strong Operational Trend Continues Financial performance suffered on sustained Production trends stable, despite curtailments pricing pressure • Avg. gross production rate up 4% QoQ to 1,258 • Low oil prices and high gas
Slide 74: Reliance Retail
Reliance Retail 74 www.ril.com
Slide 75: Macro Economic Overview
Macro Economic Overview Retail Inflation (CPI)1 Retail Inflation moderated to 3.66% in 5.20% 5.40% 5.30% 5.40% 4.90% 5.01% 4.41% August 2015 from 5.40% in June 3.69% 3.74% RBI reduced its policy repo rate by 50 bps to 6.75% at its policy review in September Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun
Slide 76: Key Highlights - 2Q FY16
Key Highlights - 2Q FY16 2Q FY16 turnover at ` 5,091 crore, up 22% Y-o-Y LFL growth of up to 16% across format sectors Record quarterly PBDIT of ` 210 crore, up 13% Y-o-Y 1H FY16 turnover at ` 9,789 crore, up by 20% Y-o-Y 1H FY16 PBDIT of ` 413 crore, up by 16% Y-o-Y Overall growth momen
Slide 77: Performance Overview
Performance Overview 2Q FY16 turnover of ` 5,091 crore, up 22% Reliance Retail Turnover (Rs Cr) Y-o-Y 20% 9,789 Across the board growth from core focus 8,166 22% sectors of Digital, Fashion & Lifestyle and 5,091 4,167 Value formats continue to drive growth 2Q FY16 PBDIT margin of 4.1% 2Q YTD F
Slide 78: Pan-India Store Network
Pan-India Store Network Store Count by Format Sector 589 June 30, Sep 30, 2015 2015 Jewellery 53 53 886 324 Brands 112 118 Digital 1,298 1,379 Fashion & Lifestyle 662 697 1,058 Value & Others 622 610 Total 2,747 2,857 Pan-India retail footprint of over 12.8 million sq. ft. 78 www.ril.com
Slide 79: Value Formats
Value Formats Core food business continues to deliver strong performance ~500 MT of fruits and veg sold daily ~4,000 Ltrs of milk sold every operational hour Healthy basket size, mix and a strong portfolio of private labels helps boost profitability Reliance Fresh Direct offers a different
Slide 80: Digital
Digital Reliance Digital continues to be the preferred authority and destination for technology products and services Fortifies retail presence with 1,379 stores across 225+ cities Continued momentum of new store opening. Net store addition of 81 stores in the quarter Strong focus on bringin
Slide 81: Fashion & Lifestyle
Fashion & Lifestyle The sector reported strong growth of 25% in 2Q FY16 compared to same period last year. The sector now contributes 15% of over all retail business LFL growth up to 14% across all formats Strengthening kids wear segment with launch of Point Cove across 150 stores in partnersh
Slide 82: Brands
Brands Strong revenue growth of 17% in 2Q FY16 compared to same period last year. Launched Juicy Couture, a contemporary casual wear and dress clothing women’s apparel brand in India, with 2 stores Announced exclusive long term partnerships with Centaurus lifestyle brands bringing Ed Hardy inn
Slide 83: Jewellery
Jewellery Positive impact on the volumes of the jewelry business Gold prices hit four year lows in July 2015 and have now stabilized Gold supplies have also improved due to lifting of import restrictions Received revised Nominated Agency Certificate for import of precious metals under the ne
Slide 84: Fashion E-Commerce
Fashion E-Commerce Curated fashion & lifestyle commerce on track for launch Technology platform being tested and stabilized Strong product portfolio coming together A wide portfolio of private label styles in place Large number of external brands signed and on- boarded Exclusive partnershi
Slide 85: Market Place Platform
Market Place Platform Market place platform empowering small and medium retailers Electronic Retailers Platform ready for deployment Roll out plan starting with 30,000 retailers; reaching up to 150,000 by year end Grocery Retailer (Kirana) Order management and fulfilment infrastructure in
Slide 86: Reconnect Brand
Reconnect Brand Introducing a wide range of products under Reconnect brand Products ready for distribution from festive season Creating a wide reach of over 30,000 retail outlets Reconnect Product Categories Imaging Power Storage Protection Car Accessories Audio Wearable's Health & Fitness Sma
Slide 87: LYF – True 4G Smartphone
LYF – True 4G Smartphone Ready to introduce a wide range of True 4G smartphones under ‘LYF’ brand LYF will enable users experience true 4G: Voice over LTE ( VoLTE) Voice over Wi-Fi ( VoWi-FI ) HD Voice and HD quality video calling A wide range of smartphones – from premium to affordable
Slide 88: www.ril.com
88 www.ril.com
Slide 89: Digital India Opportunity Getting Stronger
Digital India Opportunity Getting Stronger…. India has the second largest number of internet users in the world Internet Subscriber Base Latest estimates at over 300 million 350 302 300 267 The rate of growth has surprised everyone 239 252 259 254 250 Appetite for data consumption is high 20
Slide 90: Jio Working on the Entire Eco-system
Jio Working on the Entire Eco-system Voice High Speed Internet Video Messaging (VoLTE, VoWifi) (Mobile, FTTH) Media / Commerce / Communication Cloud Services Others Entertainment Payments • Social • News • File Storage • Goods • Government services • Sharing • Video on Demand • Picture Storage • Ser
Slide 91: Jio is Creating World Class Infrastructure
Jio is Creating World Class Infrastructure Largest holder of liberalised spectrum at 751MHz Have filed intimation to DOT for sharing of spectrum with RCOM in 800MHz band in 7 circles Largest deployment of end-to-end all-IP network in the world Network of nearly 250,000 route km of fiber opti
Slide 92: Differentiators
Differentiators 1 • Pan India LTE/LTE-Advanced networks – 2300Mhz, 1800Mhz, 850Mhz 2 • LTE Coverage in Cities, Towns, Blocks, Gram Panchayat, Villages 3 • Building All-IP Network – path for SDN/NFV evolution • Building un-paralleled scalability and resiliency in Jio Network – ready for data 4 tsunam
Slide 93: Progress…
Progress… Jio has substantially completed network roll-out across the country Network is currently being tested and optimized Business platforms have been rolled out; being tested in limited use environment Large number of testers have been employed across the country to facilitate extensive
Slide 94: Payments Bank
Payments Bank RIL has been awarded in-principle license for Payments Bank SBI is the JV partner with 30% stake Financially • Convergence of Telecom, Retail and Financial services by offering high quality 4G data and Inclusive Bank mobile services – Digitization • Digitally led strategy with focu
Slide 95: Summary
Summary 95 www.ril.com
Slide 96: Summary
Summary Downstream businesses drive record operating earnings in low crude environment 7-year-high GRM demonstrate Refining business ability to leverage equipment, processes to exploit sourcing and placement opportunities in a robust risk management framework Capturing stable chain deltas, ref
Slide 97: Thank You
(2 Thank You
Reliance Industries — Q2 FY2015-16 Earnings Presentation on 6ix