Slide 1: Reliance Industries Limited – Exchange Filing Cover Letter
• Reliance Industries Limited October 22, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex, Mumbai 400 001 Sandra (East) Mumbai 400 051 Scrip Code: 500325 / 890147 Trading Symbol: RELIANCE/ REL
Slide 2: 2Q FY22 Financial Results Presentation
2Q FY22 Financial Results Presentation 22 October 2021 1
Slide 3: Forward Looking Statement
Forward Looking Statement 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 4: Consolidated Financial Results
Consolidated Financial Results 3
Slide 5: 2Q FY22 – Key Messages
2Q FY22 – Key Messages 1. Record quarterly EBITDA - led by O2C, Retail and Digital Services Performance ✓ Consolidated EBITDA at ₹ 30,283 crore, up 30.0% YoY 2. Net profit at ₹ 15,479 crore up 46.0% YoY 1. Fifth sequential quarter of growth, with sharp recovery in refining margins O2C and 2. Demand
Slide 6: Consolidated Financial Results: 2Q FY22
Consolidated Financial Results : 2Q FY22 Change Change 1. YoY strong recovery in Revenues and Profits (₹ crore) 2Q FY22 1Q FY22 QoQ YoY 2. QoQ revenue growth led by O2C and Retail Revenue 191,532 158,862 20.6% 49.2% ✓ Higher realizations aided O2C, easing of localized EBITDA 30,283 27,550 9.9% 30.0%
Slide 7: Contributing Factors to Change in EBITDA (QoQ)
Contributing Factors to Change in EBITDA (QoQ) 2Q FY22 vs 1Q FY22 - ₹ crore (QoQ) 1. O2C segment benefited from firm fuel cracks, efficient product placement and yield management 707 30,283 2. Sharp rebound in Retail with opening of stores and 274 970 293 steady momentum in digital commerce 489 3. D
Slide 8: Contributing Factors to Change in EBITDA (YoY)
Contributing Factors to Change in EBITDA (YoY) 2Q FY22 vs 2Q FY21 - ₹ crore (YoY) 1. O2C EBITDA up 44% with revival in fuels and 1,265 270 30,283 downstream chemicals demand and margins 1,216 894 3,879 2. Higher store operational days and strong growth in omni-channel boosted Retail segment performa
Slide 9: Continuing Recovery in EBITDA
Continuing Recovery in EBITDA EBITDA (₹ crore) 30,283 27,550 26,088 25,886 26,094 26,602 1. 5th consecutive quarter of sequential growth 23,299 21,585 2. Revival in economic activity with ebbing of pandemic 3. Best-in-class portfolio spanning industrial and consumer consumption baskets 4. EBITDA up
Slide 10: Robust Balance Sheet with High Liquidity
Robust Balance Sheet with High Liquidity (in ₹ Crore) Sep-21 Mar-21 Gross Debt 255,891 251,811 Cash & cash equivalent 259,476 254,019 Net Debt (3,585) (2,208) 1. Strong cash flow generation through multiple growth engines 2. Leveraging strengths across businesses to capture economic growth recovery
Slide 11: O2C – Benefiting from Re-opening and Operational Flexibility
O2C – Benefiting from Re-opening and Operational Flexibility Demand and Margin Environment 1. Strong recovery in global oil demand by 2.6 mb/d QoQ, led by transportation fuel demand ✓ Inventory drawdowns, supply outages, gas to oil switching drive fuel cracks to multi-quarter highs ✓ High input cost
Slide 12: Digital Services – Strong Customer Engagement, ARPU Uplift
Digital Services – Strong Customer Engagement, ARPU Uplift Operating Performance 1. Gross adds of 35.6 million in 2Q FY22, highest in last seven quarters ✓ Covid impact in the previous quarter leads to churn of low-end subscribers driving net decline in customer base of 11.1 million in 2Q FY22 2. St
Slide 13: Retail – Revenues Above Pre-Covid Levels
Retail – Revenues Above Pre-Covid Levels Operating Environment 1. Retail operations rapidly approaching normalcy ✓ Sharp improvement in operating hours – 89% in Sept’21 vs. 38% in June’21 ✓ Recovery in footfalls – 78% of pre-Covid levels 2. Scaling up store and supply chain footprint - 813 new store
Slide 14: Digital Services
Q Reliance Industries Limited 13
Slide 15: Quarterly Highlights
Quarterly Highlights 12. Gross subscriber additions show meaningful acceleration ▪ Total gross adds of 35.6 million in Q2FY22, highest in last seven quarters ▪ Total customer base at 429.5 million as of September 2021 ▪ Covid impact in the previous quarter leads to churn of low-end subscribers drivi
Slide 16: Accelerating Customer Acquisition
Accelerating Customer Acquisition ➢ Focus on ramping up customer acquisition Gross Adds – improving trend ▪ Address customer churn during April-May 2021 owing 35.6 to second wave of Covid 31.2 27.7 ▪ We had taken measures such as extension of service 25.1 26.7 and attractive tariff plans, however lo
Slide 17: JioPhone Next
JioPhone Next Reimagined OS with unique Innovative consumer experiences 01 04 value propositions Entire spectrum of Apps Wide availability with Google Play 02 05 Leveraging JioMart Digital network Industry leading Hardware Spec Assured support Leveraging partnerships 03 06 Through Aftersales network
Slide 18: Intelligent Network Ops Improve Customer Experience
Intelligent Network Ops Improve Customer Experience ➢ Improving Network throughput by identifying high customer impact duration sites ➢ Applying Data Science to predict customer experience and proactively improve it ▪ Predicting traffic increase due to localized reasons such as sporting events, conc
Slide 19: Jio's Indigenous 5G Platform
Jio’s Indigenous 5G Platform ➢ Jio 5G field trials have started at various locations with competitive position and capabilities comparable to global Tier1 vendors ▪ Comprehensive homegrown 5G stack for both Radio (5G NR) and Core Network (5G CN) compliant to latest standards ➢ Actively trialing 5G u
Slide 20: JioFiber – #1 FTTH Provider In The Country
JioFiber – #1 FTTH Provider In The Country ➢ JioFiber has over 4 million connected premises with continued improvement in customer connects every month ➢ Despite Covid related challenges, on-the-ground work to expand infrastructure layout has continued at a brisk pace ▪ Jio's optical-fiber network i
Slide 21: Next Generation Home Experience
Next Generation Home Experience Achieved Critical-Mass of Adoption and growth With robust pipeline of content and solutions JioFiber Jio 4K Set Broadband Top Box + Smart (1Gbps+ FTTx, Smart Speakers Home Wi-Fi) Remote One Stop Home IoT … Discovery Solutions across multiple Providers Bundled 100s of
Slide 22: JioHaptik – Builds Traction With New Partnerships
JioHaptik – Builds Traction With New Partnerships ➢ Conversational AI Platform ▪ Enables better customer interactivity across chat, voice, email, WhatsApp ▪ Global client base across US, SE Asia, Africa, India ▪ Readily integrated with large CRM platforms Chat WhatsApp Voice Salesforce, Zendesk, Sho
Slide 23: RJIL – Key Operating Metrics
RJIL – Key Operating Metrics 2Q’ 21-22 1Q’ 21-22 2Q’ 20-21 ➢ Strong acceleration in gross additions Total Customer base 429.5 440.6 405.6 offset due to discontinued customers on (million) account of covid 2nd wave Net Customer addition (million) (11.1) 14.3 7.3 ▪ Net customer decline of 11.1 million
Slide 24: RJIL – Key Financials
RJIL – Key Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 8,631 9,003 18,492 18,735 8,166 8,313 17,481 17,358 17,994 7,701 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 ➢ RJIL revenue up 4.1% QoQ; like-for-like growth at ~16% YoY adjusted for IUC ➢ EBITDA mar
Slide 25: Jio Platforms Limited - Key Financials
Jio Platforms Limited - Key Financials Particular JPL Consolidated 2Q’ 21-22 1Q’ 21-22 2Q’ 20-21 ➢ Operating revenue growth (adjusted for Gross Revenue* 23,222 22,267 21,708 IUC) at ~15% YoY driven by Operating Revenue 19,777 18,952 18,496 connectivity platform; other revenue EBITDA 9,294 8,892 7,97
Slide 26: Reliance Retail
Refence es RETAIL 25
Slide 27: Operating Context Improves
Operating Context Improves • Most stores now operational barring restrictions in select geographies % Store Operational Days & Footfalls • 89% stores operational (2Q FY21: 85% | 1Q FY22: 61%) 96% 94% 89% 85% • Significant improvement in operating hours, recovers to 89% in Sep Vs 88% 61% 38% in June
Slide 28: 2Q FY22: Key Messages
2Q FY22: Key Messages 1. Revenue surpasses pre-COVID levels; up 16% YoY1; led by strong uptick in Fashion & Lifestyle 2. Strong EBITDA performance; at Rs. 2,913 Cr, up 45% YoY, driven by favorable revenue mix and investment income 3. Rapid infra expansion resumes; 813 new stores ready, 86 new supply
Slide 29: Revenue Surpasses Pre-COVID levels
Revenue Surpasses Pre-COVID levels • Strong revenue performance; growth of 16% YoY and 18% QoQ1 Gross Revenue (Excl. Petro Retail) Rs Crores • Fashion & Lifestyle outperforms, >2X YoY • Recovery for store revenues as curbs are lifted 46,830 45,240 41,602 37,946 38,864 • Strong momentum sustained in
Slide 30: Strong EBITDA Performance
Strong EBITDA Performance • EBITDA at Rs. 2,913 Cr, up 45% YoY and 50% QoQ Total EBITDA Rs Crores • Led by 2X growth in Fashion & Lifestyle revenues 2,913 • Build back of revenues from Electronics and Grocery 2,006 1,941 • Continued emphasis on cost management • Boost from higher investment income •
Slide 31: Rapid Infra Expansion Resumes
Rapid Infra Expansion Resumes 1 New Store Trend Geographic Mix 813 Total Q2 Addition Area Area Store Store Region (SqFt (SqFt Count Count mn) mn) North 3,014 6.7 151 0.5 South 4,050 14.1 324 1.2 232 East 2,953 6.1 161 0.4 123 West 3,535 9.6 172 0.7 International1 83 0.8 5 0.0 2Q 1Q 2Q Total 13,635 3
Slide 32: Decisive Actions to Bolster Portfolio
Decisive Actions to Bolster Portfolio Master Franchisee Shop Sense Feb’ 19 Mar’ 19 Jul’ 19 Aug’ 19 Nov’ 19 Mar’ 20 Aug’ 20 Nov’ 20 Feb’ 21 Mar’ 21 Jul’ 21 Oct’ 21 Strengthening capabilities across brands, supply chain and technology 31
Slide 33: Financial Summary
Financial Summary In Rs Crore % Growth % Growth 1Q FY22 Parameter 2Q FY22 2Q FY21 Q-o-Q Y-o-Y 38,547 18% Gross Revenue 45,426 41,100 11% 33,566 19% Net Revenue 39,926 36,566 9% 1,941 50% Total EBITDA 2,913 2,006 45% 5.8% 150 bps Total EBITDA Margin on Net Revenue (%) 7.3% 5.5% 180 bps 962 76% Profit
Slide 34: Performance Highlights – Consumer Electronics
Performance Highlights – Consumer Electronics • Strong double-digit growth on store sales; highest quarterly revenues for ResQ • Best-ever 15th Aug sale (ticket size +20%) led by offers, affordability programs, new launches • Double-digit growth across all key categories; phones, TVs, Home Appliance
Slide 35: Performance Highlights – Fashion & Lifestyle (1/2)
Performance Highlights – Fashion & Lifestyle (1/2) • Apparel & Footwear registered highest quarterly sales; up 2X YoY on festivities and promotions • Footfalls at 78% of pre-COVID levels; higher conversion and ABVs drive performance • Strengthening portfolio - Launched Avantra by Trends / Trends Sar
Slide 36: Performance Highlights – Fashion & Lifestyle (2/2)
Performance Highlights – Fashion & Lifestyle (2/2) Jewels • Strong revenue momentum sustained; share of diamond jewelry increases • Leveraging design capabilities to drive sales - introduced 9 theme-based national & regional collections • 50% growth in Gold Saving Scheme enrolments over LY; higher t
Slide 37: Performance Highlights – Grocery
Performance Highlights – Grocery • Double digit growth on continuing business on higher operating hours, share of non- essentials up • Smart Super reaches 400 store milestone; >200 stores added in last 2 years; ~50% in Tier 2 & below • Successful execution of mega events – highest ever Full Paisa Va
Slide 38: Performance Highlights – New Businesses
Performance Highlights – New Businesses • Pharma • Netmeds traffic up 48%; launched subscription model; doubled store footprint; hyperlocal model scaled • Launched Netmeds Wholesale; strengthened product portfolio; 20 new FCs operationalized • Zivame • Record quarter; 15 stores added; extended produ
Slide 39: Looking Ahead
Looking Ahead Acceleration planned across all key growth levers 1. Rapid rollout of new stores 2. Expand Digital commerce and service capabilities 3. Accelerate New commerce merchant onboarding across businesses 4. Develop / scale up new businesses – Marketplace/Just Dial, 7-Eleven, Subscription, Zi
Slide 40: Oil & Gas
Q Reliance Industries Limited 39
Slide 41: Oil and Gas Segment Performance
Oil and Gas Segment Performance Change 1. Segment Revenues up 28.3% QoQ (in ₹ Crore) 2Q FY22 1Q FY22 2Q FY21 QoQ 2. EBITDA up 34.4% QoQ driven by Revenue 1,644 1,281 28.3% 355 ✓ Higher production from KG D6, up 18.4% EBITDA 1,071 797 34.4% (194) EBITDA Margin(%) 65.1% 62.2% (54.6%) ✓ Improved price
Slide 42: Other Updates
Other Updates KG D6 – MJ Field ✓ Drilling and Completions of wells underway ✓ FPSO and Subsea Production System on track ✓ Construction activities at various location on schedule MJ: FPSO Moonpool block ✓ Second Offshore campaign to commence in 3Q FY22 ✓ First gas expected by 3Q FY23 KG UDW1 ✓ Seism
Slide 43: Global Gas/LNG Outlook
Global Gas/LNG Outlook 1. Unprecedented demand across the globe led to historic Current Increase over last Marker increase in gas prices, most markers up 3X QoQ Prices 3 months 6 months JKM 33 3x 4.5x ✓ Asia - recovery post covid, coal switching, nuclear outages NBP TTF 29 29 3x 3x 4.5x 4.5x HH 5.6
Slide 44: Oil to Chemicals (O2C)
Q Reliance Industries Limited 43
Slide 45: Global Environment - Demand and Utilization Levels
Global Environment - Demand and Utilization Levels Volume Change 1. Aided by positive consumer sentiment, global Global Oil 97.8 mb/d 5.1 mbd YoY vaccination drive, supportive monetary policy 2.6 mbd QoQ ✓ Global road mobility index 135% of pre-Covid Demand India ✓ Air travel in West of Suez enabl
Slide 46: Global Environment - Price and Margin Trends
Global Environment - Price and Margin Trends Avg. Price % QoQ 1. Strong demand, supply constraints driving energy prices Brent $73.5/bbl 6.7% ✓ LNG prices at multi-year high levels Feedstock Price Asian LNG $18.6/mmbtu 86.0% 2. High crude and gas prices led to higher feedstock costs Naphtha $665
Slide 47: Transportation Fuels Cracks and Gas Prices
Transportation Fuels Cracks and Gas Prices Singapore Product Cracks to Dubai Gas Prices 16 36 14 31 12 26 10 $/mmbtu 8 21 $/bbl 6 16 4 11 2 6 0 -2 1 Apr/21 May/21 Jun/21 Jul/21 Aug/21 Sep/21 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Gasoline 92R Gasoil (10 ppm) Jet JKM Marker TTF Henry H
Slide 48: Improving Global Travel Metrics
Improving Global Travel Metrics Mobility Index (Driving) Flight Departures Indexed to Jan-Feb 2020 (7-Day MA) Index (100% = December 2019 avg), 7-Day MA 1. Mobility index is now above pre-Covid level in all regions across the world, cities facing traffic congestion again 2. Flight departures gain si
Slide 49: Domestic Market Environment
Domestic Market Environment 1. Demand surpassed pre-COVID levels ✓ Polymer demand (+14% QoQ, +7% YoY) led by e-com, health & hygiene and FMCG Polymer / Polyester ✓ On a low base polyester demand up 41% QoQ, 39% YoY; ahead of festive season Demand 2. Container shortage and port congestion led to high
Slide 50: Polymers Market and Deltas
Polymers Market and Deltas Product deltas and Domestic demand indexed to 4QFY20 (pre-Covid) levels Domestic Demand Deltas (RHS) Demand (LHS) 1. PP, PE demand at 12% above pre-covid level PE PVC PP PE PVC PP 140% 800 2. Polymer QoQ demand up 14%, YoY demand up 7% Wtd. Avg. 120% 700 Indexed Domestic D
Slide 51: Polyesters Market and Deltas
Polyesters Market and Deltas Polyester chain margins and Domestic demand Domestic Demand indexed to 4QFY20 (pre-Covid) levels 1. Demand 19% above pre-covid levels Polyester chain margin POY PSF PET Wtd. Avg. 2. Indian market recovered with onset of festive demand, 140% 612 700 improved vaccination c
Slide 52: Transportation Fuels Cracks and Demand (1/2)
Transportation Fuels Cracks and Demand(1/2) Asian Gasoil (10 ppm) Cracks 240 Gasoil 15 225.1 1. Global gasoil demand improved by 0.5 mb/d QoQ to 27.7 mb/d 10 210 Mn bbls 8.1 ✓ Strong summer driving season in Europe, lower inventory, $/bbl 6.9 5.0 185.0 5 176.7 180 higher Asian exports to the west 0
Slide 53: Transportation Fuels Cracks and Demand (2/2)
Transportation Fuels Cracks and Demand(2/2) Gasoline Asian Gasoline 92R Cracks 1. Global gasoline demand improved by 0.7 mb/d QoQ to 26.3 12 270 259.6 9.7 250 mb/d, supporting cracks 10 248.8 8.1 235.6 8 230 ✓ Seasonal travelling demand - mainly in Europe and U.S. Mn bbls $/bbl → 6 210 4 2.9 190 ✓ O
Slide 54: O2C Performance Highlights – 2Q FY22
O2C Performance Highlights – 2Q FY22 ₹ 120,475 crore ₹ 12,720 crore 10.6% Revenue EBITDA EBITDA margin 16.7% QoQ 4.0% QoQ 130 bps QoQ 58.1% YoY 43.9% YoY 100 bps YoY 1. Sustained QoQ EBITDA growth led by ✓ Strong domestic demand across O2C product chain and recovery in transportation fue
Slide 55: O2C Operating Performance – 2Q FY22
O2C Operating Performance – 2Q FY22 Feedstock 2Q FY22 1Q FY22 1. Gasoline production maximized with improved cracks (Vol in MMT) 2. Maximized PX production with opportunistic feedstock sourcing Throughput 18.7 19.0 3. MD products placed in export market based on higher netbacks Production meant for
Slide 56: O2C Business Dynamics
O2C Business Dynamics 1. Oil demand expected to average 96.3 mb/d in 2021, 96.8% of 2019 levels (IEA est.) Macro 2. Declining infection rates, easing of movement restrictions to support demand recovery 1. Reopening of economies, lower Chinese exports to support middle distillate margins Price and Ma
Slide 57: Summary
Summary 56
Slide 58: Advantageously Positioned For Economic Recovery
Advantageously Positioned For Economic Recovery Advancing Commitment to Strong Financial Position Cyclical and Secular Tailwinds Net Carbon Zero Focus on customer-centric products and services Robust operating cash flow Laying foundation for Giga generation Strong traction for best-in-class factorie
Slide 59: Thank You
Thank You 58