Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Investor Presentation (May 2020)
30 slides from Reliance Industries's investor presentation, May 15, 2020
Slide 1: Cover letter to stock exchanges
May 15, 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Mumbai 400 001 Bandra-Kurla Complex Bandra (East) Mumbai 400 051 Scrip Code: 500325 Trading Symbol: RELIANCE Dear Sirs, Sub : Corporate Presentation Please fi
Slide 2: Corporate Presentation May-2020
Corporate Presentation May-2020
Slide 3: Disclaimer
Disclaimer 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 projections abo
Slide 4: New Reliance for a New India
New Reliance for a New India Reliance is a ‘Made in India’, Made for India’ and ‘Made by Indians’ Company ■ Which has always treated its investors, big and small, as valued partners in building world-class and world-scale assets that have made India proud ■ Which has always aligned its businesses wi
Slide 5: Key Highlights of New Reliance
1 Key Highlights of New Reliance 4
Slide 6: Key Highlights of New Reliance
Key Highlights of New Reliance RIL is the best proxy for India’s consumption-driven and tech-propelled growth story Hyper-growth of consumer businesses along with a strong O2C platform Robust and high quality balance sheet to be sustained by strong cash flow generation Track record of significant va
Slide 7: Reliance has Built Three New Mega-Growth Engines in a Single Decade
1 Reliance has Built Three New Mega-Growth Engines in a Single Decade ◼ Connecting Indians digitally with unprecedented reach at affordable prices with superior customer experience 1 ◼ Reached 388 million subscribers (FY20) in less than four years since inception ◼Serving the entire spectrum of Indi
Slide 8: Reliance is a Proxy to India's Tech-Led Growth
1 Reliance is a Proxy to India’s Tech-Led Growth ◼ India is world's most digitally dexterous ◼ RIL’s Digital Connectivity Platform of unparalleled ✓ country; it has the world’s largest Gen Z capacity and a nation-wide reach makes this a great workforce with desire to learn new opportunity digital te
Slide 9: Oil-to-Chemicals (O2C) is a World-Class Integrated Platform
1 Oil-to-Chemicals (O2C) is a World-Class Integrated Platform ◼ O2C is Reliance's most profitable business today ✓ ◼ Reliance was among the first companies globally that adopted an 'Oil-to-Chemicals' strategy and ✓ manage it as one integrated business ◼ The value-chain integration in O2C business is
Slide 10: Hyper-Growth of Consumer Businesses Along With a Robust O2C Platform
2 Hyper-Growth of Consumer Businesses Along With a Robust Oil-to-Chemicals (O2C) Platform EBITDA Has Grown 2x in Last Five Years #1 integrated O2C player #1 integrated O2C player #1 integrated O2C player Emerging retail player #1 technology and consumer player $13.6bn Others Retail +111% p.a $6.1bn
Slide 11: Robust and High Quality Balance Sheet to be Sustained by Strong Cash Flow Generation
3 Robust and High Quality Balance Sheet to be Sustained by Strong Cash Flow Generation Reflected in Strong Ratings Significant liquidity with $23.4bn of ✓ cash and equivalents ◼ Investment grade rating for international debt from Moody’s as “Baa2” and “BBB+” from S&P ◼ Domestic credit ratings of “CR
Slide 12: Driven by Consistent and Stellar Performance
4 …Driven by Consistent and Stellar Performance… Since IPO Last 25 Years Last 5 Years Revenue growth 24% p.a 20% p.a. 11% p.a. EBITDA growth 25% p.a 18% p.a. 17% p.a. Net Income growth 25% p.a. 16% p.a. 13% p.a. Market Cap growth 31% p.a. 19% p.a 30% p.a. Continued stellar growth despite significant
Slide 13: Reflecting in the Re-Rating of the Stock
4 …and Reflecting in the Re-Rating of the Stock Rapid growth of and contribution from consumer businesses in the last five years has re-rated the stock P/E P/B EV / EBITDA 12.5x 20.4x 2.1x 9.3x 11.4x 1.2x FY15 FY20 (est.) FY15 FY20 (est.) FY15 FY20 (est.) Re-rating to continue with increasing share
Slide 14: Significant Recent Investments from Leading Global Strategic and Financial Investors
5 Significant Recent Investments from Leading Global Strategic and Financial Investors ◼ Strategic investment of ~$5.7bn by Facebook into Jio Platforms, a subsidiary of RIL, for 9.99% stake in the largest ever FDI in technology sector in India ◼ Additional investments from Vista Equity Investors and
Slide 15: Reliance Remains at the Forefront of Consumer and Energy Businesses
2 Reliance Remains at the Forefront of Consumer and Energy Businesses 14
Slide 16: Reliance is Omnipresent Across the Indian Consumer Ecosystem
Reliance is Omnipresent Across the Indian Consumer Ecosystem ◼ Reliance has set-up India’s leading and world-scale consumer businesses in the last 10 years ◼ Through Jio Digital Services, Reliance Retail and Media businesses, the Group touches and improves the lives of over 800mn Indians every day A
Slide 17: Reliance Has Built the Best Access to Indian Consumers by Creating the Physical-Digital Bridge
Reliance Has Built the Best Access to Indian Consumers by Creating the Physical-Digital Bridge Physical Footprint Unreplicable physical- Digital Footprint ✓ digital footprint across India 1mn+ Customer touch 235 Kashmir ✓ points and direct customer 220 Jammu 1,222 Himachal service ops hubs across th
Slide 18: Jio Started the Digital Revolution in Sep-2016
Jio Started the Digital Revolution in Sep-2016 Leading to Dramatic Behavioral Changes in Indian Society Before Jio After Jio <1 Mbps Download Data Availability Speed 20 Mbps Download Speed Speed and Affordability INR 250 – 20,000 Per Pricing < INR 13 Per GB of Data GB of Data 240 MB Average Data 11.
Slide 19: Jio Has Demonstrated Strong and Profitable Growth Sustainably
Jio Has Demonstrated Strong and Profitable Growth Sustainably >2x Growth in Jio Revenue and EBITDA Over the Last 2 Years ($mn) 1,978 1,862 1,751 1,562 1,557 1,451 1,232 1,081 950 747 827 625 689 540 577 420 476 359 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Operating Revenue EBIT
Slide 20: Reliance Retail is India's Largest and Foremost Retailer
Reliance Retail is India’s Largest and Foremost Retailer 640 million customer footfalls 125 million loyal customers India’s largest Multi-format Retailer Enhancing the quality of life of Indians, guided by RIL’s vision — Growing India, Growing with India 19
Slide 21: Reliance Retail is Achieving Global Acclaim
Reliance Retail is Achieving Global Acclaim Revenue Increased by ~9x and EBITDA by ~12x Over the Last 5 years World’s Fastest Growing 2,621 3,245 3,616 7,573 10,415 11,784 Retailer Global Powers of Retailing, Deloitte ($mn) 2020 $21,725 $17,409 $1,287 1 $9,226 $827 $4,502 $2,810 Emerging Global Reta
Slide 22: Looking Ahead, Indian Retail is a Hyper-Growth Market Opportunity
Looking Ahead, Indian Retail is a Hyper-Growth Market Opportunity ORGANIZED RETAIL FY2019: $822bn FY2025E: $1,464bn GROWTH AT 2X OF MARKET Reliance well placed with presence and expansion across Organized Retail, ~$88bn (11%) Organized Retail, ~$237bn (16%) categories & geographies UNORGANIZED RETAI
Slide 23: Jio Platform's New Commerce Will Digitally Enable the Unorganized Retail Market
Moreover Jio Platform’s New Commerce Will Digitally Enable the ~$1.2tn Unorganized Retail Market…the Backbone of India Massive Unorganized Retail Market… …Being Transformed by New Commerce… ($bn) 28.5mn Merchants $1,228 $735 FY2019 FY2025E Deploy Merchant Point of Sale device to technologically en
Slide 24: Reliance Retail Remains Well Positioned in India's Retail Market Opportunity
Reliance Retail Remains Well Positioned in India’s ~$1.5tn Retail Market Opportunity 1 2 Deep Understanding of Trusted Relationships Indian Market and with Merchants and Customers Brands 7 3 Strong Digital 1 2 Vast Presence Across Ecosystem Product Categories (Parent + Partners) 7 3 6 6 4 5 4 Experi
Slide 25: World-Class Integrated Oil-to-Chemicals Platform
World-Class Integrated Oil-to-Chemicals Platform Jamnagar Refining …Integrated With Complex… Petrochemicals Portfolio World’s largest single Diverse product site refinery; crude portfolio of global scale capacity of 1.4mmbpd across Polymer and Polyester chains Complexity index of 21.1 enables
Slide 26: Benefits of Deep Integration Between Refining and Petchem
Benefits of Deep Integration Between Refining and Petchem… ◼ Integrated C2 complex with world’s largest ROGC and Jamnagar Supersite LLDPE, LDPE, MEG plants Feedstock Jamnagar Security Supersite ◼ Highly competitive cracker costs due to integration with petcoke gasification Flexibility ◼ Cracker inte
Slide 27: Providing a Platform to Become Future-ready
…Providing a Platform to Become Future-ready ◼ Among the first companies globally that adopted an 'Oil to Chemicals' World Class strategy and manage it as one integrated business Business ◼ Value-chain integration allows RIL to create an annuity-like cash flow Today… ◼ Plan to achieve greater than 7
Slide 28: Re-capping the New Reliance
3 Re-capping the New Reliance 27
Slide 29: Exciting Outlook for Every Business
Exciting Outlook for Every Business ◼ Jio best placed to capitalize on home broadband market in India through launch of JioFiber ◼ Jio is the only operator with all-IP network, which is critical for launching 5G service and ensuring a smooth transition ◼ Reliance is best placed to leverage its onlin
Slide 30: Thank You
THANK YOU 29
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