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Slide 2 Family
YOUNG GROUP - 9 YEAR OLD ASSETS CREATED ORGANICALLY IN INDIA Million Shareholders; Amongst largest in the world
Million C ust omers; 1tf5IdiE1 out of 5 Indians Every Si SilDngle Day
Young, trained & motivated manpower
Assets worth more than ` 2.6 Lakh crore
Net Worth more than ` 93,500 crore
Revenues of over ` 57,000 crore
Operating EBITDA of ~` 20,000 crore
Numbers as of FY15 Slide 3 Reliance Group –Key Businesses
Financial Services Infrastructure Power Communication
Power Sector Asset Management Power Generation Wireless Distribution Thermal Generation Coal Life Insurance Gas Enterprise Transmission Renewable General Insurance Urban Transport Hydro Telecom Infrastructure Road Solar Wind Metro Commercial Finance Resources Direct to Home Airports Coal Mining Broking & Distribution Cement India Worlds largest Indonesia submarine cable EPC Services network Coal Bed methane Defence
Reliance has played a key role in nation building with strong presence in core sectors
Slide 4 Infrastructure in India – US$$ppy 1 Trillion Opportunity
Trend in Infrastructure Investment Infrastructure development set to accelerate with 1000 48% 50% Government impetus to revive economy 900 860 37% 800 40% Strong private participation along with Government 700 initiatives to boost infrastructure development 600 25% 30% 500 ~75% of investments expected in Power, Roads, 400 375 20% Telecom and Railways 300 8.2% 7.2% 200 140 10% ~50% of investments expected from private sector 100 5.2% 0 0% Investments during 2007-12 expected to increase 10th plan 11th plan 12th plan by 2.3x in next 5 years Total Investment (US$ bn) Infra Invt Private sector share (% o f GDP)
RInfra is present in sectors to have ~60% of infra spend during 2012-17
Slide 5 Leadership position across all businesses
Well diversified portfolio with stable cash flows
Proven track record of completing large infrastructure projects Key Investment Capex cycle complete; Reverse cashflow started Highlights
Strong balance sheet with Networth of ` 282 bn
Forayed into high growth defence business
Focus on debt reduction through asset monetisation
Well placed to capitalize on the growth opportunities
Slide 6 Business Overview
POWER GtiGeneration Transmission Distribution URBAN EPC TRANSPORT Generation Diversified Roads Transmission Portfolio Metro Rail Roads Airports
DEFENCE CEMENT 5.6 mtpa Make in India operational initiative capacity
Presence across all key infrastructure sectors
Slide 7 Presence across Power Value Chain
Distribution Generation* Transmission
Over 6.7 mn consumers Operational Capacity : 6,885 MW Own 4,000 circuit kms of operational lines Serving 2 out of 3 homes in Under Development : 10,000 MW Mumbai & Delhi Enable flow of 4,000 MW Coal Reserves : 2. 6 bn tonnes in western region
* Includes Reliance Power Ltd (RPower)
RInfra has 43.2% stake in RPower
Leading integrated private sector power company in India
Slide 8 Power Generation Under Construction/ Development 10,320 (>10 GW) Hydro Projects * (672 MW) Operational Capacity * Hydro Project Hydro Projects * (6, 885 MW) (400 MW) (4,220 MW) 5,945 700 Solar CSP # (100 MW) Rosa # (1,200 MW) 941 Chitrangi^
# (3,960 MW) Solar PV RInf ra RPower Cl/GCoal/Gas RblRenewables (40 MW)
Sasan# (3,960 MW) Dahanu Power Plant operated at 100% Wind # Butibori# PLF for 9 years since inception (45 MW) (600 MW) Dahanu RPower has well diversified portfolio by (500 MW) Samalkot^ (2,620 MW) fuel type, offtake and location Goa Krishnapatnam^ (48 MW) Karnataka (3,960 MW) Wind # Largest integrated private sector power (8 MW) generation and coal resources in India Kerala (165 MW) RPower signed MOU with Govt.of Coal Gas Renewable Hydro Coal Mines Bangladesh to develop 3,000 MW LNG # Operating Projects; ^ Projects Under Construction; * Projects Under Development bdbased power pro jtject All future power generation will be through RPower
Slide 9 Power Distribution
AT&C loss levels of ~24% in India Serving consumers in mega metros i.e. Mumbai & Delhi 1% reduction in loss level can save ` 60 bn
Lauched UDAY* scheme to ease financial crunch of discoms Serving over 6.7 million consumers
Investment of ` 3,000 bn envisaged during 2012-17
*Ujwal Discom Assurance Yojana Distributing ~5,800 MW of power
Have 50% market share of total private sector distribution
Largest power distribution player in the private sector
Slide 10 Mumbai Distribution Serving ~ 3.0 mn customers
<10% loss levels versus India avg. of ~25%
Reliability of 99.98% : Avg. interruption of <20 secs/day
Only Indian utility with reliability focus at customer level
Started recovery of arrears amounting to ` 55.5 bn & Cross Subsidy Surcharge wef Sept 2013 • Already recovered ` 20.6 bn arrears till Q3FY16
Signed non-binding term sheet with PSP Investment of Canada for 49% stake sale in Mumbai power business
Sharing expertise by providing IT consulting & implementation to 6 SEB’s
Amongst the most efficient power distribution utility in the country
Slide 11 Delhi Distribution
Serving over 3.7 mn customers
Loss levels reduced from 55% to sub 17%
~` 50 bn spend on network upgradation
Provides 24x7 reliable and quality power • Outage reduced from 5 hrs/day to <3 min
Significant reduction in consumer complaints • Network reliability improved by ~30%
Regulator approved recovery of ~` 100 bn arrears including carrying cost
Leveraging expertise via external consultancy to Nigeria, Ethiopia, Haryana Bijli Vitran Nigam, etc
Improvement in quality of power supply acknowledged by all
Slide 12 Transmission
Operating / Developing 3 projects worth ` 46 bn in Western & Northern region • WRSS (1500 kms)jtiMhht&) project in Maharashtra & Gujarat is commissioned • Parbati Koldam 400 kV project in Himachal Pradesh operational • 8 EHV sub-stations backed system with ~100% reliability in Mumbai Transmission ~4,000 circuit kms of operational lines
>4,000 MW transmission capacity in western region
Deppyloyed world class GIS Technolo gy, 220 kV EHV substations & underground cable network in Mumbai
All projects to be operational within FY16
Slide 13 Roads Business Amongst the largest NHAI concessionaires Government has planned All 11 road projects are revenue operational ` 9,100 bn investment in Road sector d uri ng 2012-17 High traffic growth urban corridors eg. Delhi, Bangalore, Jaipur, Gurgaon, Agra, Pune, etc. NHAI plans to award 10,000 kms of road projects next 2 years Concession period ranges between 18 - 30 years All toll plazas are equipped with Electronic Toll ~32% of the total planned outlay Collection (ETC) in the sector is expected from the private players Binding agreement for monetising entire road portfolio to be concluded shortly
11 Projects I 7 States I 970 kms I ` 115 bn
Slide 14 Metro Rail Business
Project Cost Length Concession Project COD ` bn (Kms) Period*
Mumbai Metro ` 40.3 12 June 2014 35 years^
Line handed over to DMRC Delhi Airport Metro Express Link ` 28.9 23 wef July 1, 2013
* Including construction period ^ Concession period extended by 755 days
Successfully executed projects in Mumbai and Delhi in challenging environment
First mover advantage and technical expertise will enable RInfra to bid for new projects
Exploring opportunities through EPC , O&M contract or as a developer of metro rail
First private player to commission metro rail in the country
Slide 15 Muubambai Metr o Long awaited East to West rail connectivity • Travel time reduced from 120 to 21 minutes
Over 14 crore passengers travelled • 550,000 smart card holders – Loyal patronage
Fare Fixation Committee recommended increase in fare band ranging from ` 10 to ` 110 • Approached State Govt. to provide subsidy and other revenue streams to contain fare rise Best in class service: • Service efficiency of 99.9% • Excl usiv e space f or l adi es in coach es • Station cleanliness rated at par with malls • Commuter engagement through social media, call center & CRM system
Safe, Fast, Comfortable, Convenient and Affordable mode of transport
Slide 16 Cement Business
Signed final binding agreement with Birla Corp for Operational Capacity 100% sale of cement assets at ` 48 bn Location Project (mtpa) Operational cement capacity of 5.6 mtpa with Maihar Madhya Pradesh 3.1 presence across 6 states in India Best in class quality of cement in terms of strength Kundangunj Uttar Pradesh 2.0 andiid setting time
First company in India to start online sale of cement Butibori Maharashtra 0.5 Awarded Sial Ghogri coal mine thereby ensuring energy security
Amongst the top 3 players in terms of pricing
Slide 17 EPC Business
Fund allocation during 2012-17 in Amongst the largest EPC player in India with presence following sectors will create across power generation, transmission & road sector opportunities for private players: Current order book comprises of 11 projects worth • Power : ` 15,000 bn ~` 37 bn as on December 31, 2015 • Roads : ` 9,100 bn Consistently maintained EBITDA margin of 8% - 10% • Rail : ` 6,400 bn over the years • Ports : ` 2,000 bn Proven track record of executing large projects within Almost 40% - 50% of investments cost&tit & time could be through EPC route Well prepared to capitalize on emerging opportunities India is largest PPP market in the i.e. Roads, Defence, Metro Rail, Smart Cities, etc. world with over 900 projects in various stages of development
RInfra is well positioned to capture EPC Opportunities
Slide 18 Defence - Sunrise Sector
India is the largest importer of defence equipment in the world • Defence spending increased @ CAGR of 5.3% in last 10 years
New Defence Procurement Procedures (DPP 2016) – promotes “MAKE INDIA” ; Strategic Partnership (SP) Model • Boost for Private Sector Participation for all types of Defence acquisition i.e. ‘Buy Indian-IDDM’ (Indigenenous Design Development & Manufacturing) • Increase in FDI to 49% together with critical definition - to ensure foreign collaboration to lead to manufacturing in India • Offset clause stipulates 30%-50% imported orders to be sourced from Indian suppliers including Technology Transfer
Opportunity in Defence : Rs 11 lakh crore in next 15 years Navy - Rs 3 lakh crore Bids Submitted so far Aerospace - Rs 3 lakh crore – Rs 840 Billion Army - Rs ` 5 lakh crore
Slide 19 Reliance Defence & Engggineering Ltd India’s first world class integrated Defence production, Ship Building & Offshore infrastructure company
Facilities: • One of the largest dry docks of the world - 662 meters in length and 65 meters width • 2 goliath cranes with lifting capacity of 1, 200 tons (combined) • Capacity: 144,000 mtpa • Modular & Integgprated ship-buildingggy technology • Life time support to Frigates, Aircraft carrier & Submarines of Indian Navy
Robust order-book worth ` 42 bn
India’s only Shipyard to build any-kind of Ships; qualifie d t o refit I ndi an Ai rcraft C arri er
Slide 20 Airport Business
Operating 5 Brownfield airports in Maharashtra i.e. Nanded, Latur, Yavatmal, Baramati & Osmanabad • Lease peri od : 95 year s • Land area : 1,487 acres
All airports have Charter flight & Corporate Jets operations
Opportunities : • Upcoming Navi Mumbai International airport • 200 low cost airports to connect Tier II & III cities • 15 new Greenfield airports
Focus towards providing requisite regional air connectivity
Slide 21 Smart Cities – A Significant Growth Opportunity
Govt. shortlisted 100 smart cities for urban Sectors that will be key beneficiaries eco-system development
Power incl. Telecom Proposed ‘Smart Cities’ will be satellite towns of Renewables larger cities & modernization of existing mid- sized cities Road Water
Allocation of funds for smart cities development Waste over 5 years Railways (MRTS) Management • ` 480 bn bCby Cen tlGttral Govt. Health & • ` 480 bn likewise by State Govt. & Urban Cement Education local bodies IT connectivity & EPC activities Execution of projects will be through PPP, Digitalization subsidiaries, JV’s, turnkey contracts etc.
RInfraRInfra will capitalize won first smart on opportunitiescity project in BKC available (Bandra), in Mumbai smart cities
Slide 22 Financial Performance - Consolidated
(All figures in ` bn) Particulars FY11 FY12 FY13 FY14 FY15 9MFY16
Total Income 159.1 250.3 234.3 203.0 188.5 140.7 Conservatively financed EBITDA 24.9 35.3 40.2 40.7 45.6 38.3 Debt : Equity of 1.0x
PAT 15.5 15.9 18.7 19.1 18.0 13.2
Networth 236.1 242.4 261.2 265.9 269.7 282.0 Capex cycle nearing completion Debt 116.7 182.9 219.8 242.9 257.7 283.4
EPS (`/share) 58.2 60.1 71.2 72.8 68.5 50.0 Reverse Cash flow Book Value started 883 918 993 1,011 1,026 1,072 (`/share)
Note: PAT and EPS in FY13 excludes exceptional item of “Profit from sale of RPower shares”
Strong balance sheet to drive growth
Slide 23 Sh ar eh ol din g Patte rn
MF & Banks Corporate 0.8% Bodies 1.3%
Public 11.0%
Insurance 16.5% Promoters 48.7%
FII 21.7%
As on D ecem ber 31, 2015
Largest shareowner family in the sector : 1.1 mn
Slide 24 Human Capital – Our Strength
training Young 775 + 13000 Workforce programmes for ElEmployees AAAverage Age 40 years ~31,000 man-days
Strategic enabler and business growth driver
Slide 25 Corpppyorate Social Responsibility
Swachh Bharat Abhiyan through cleanliness didrive across opera tions & neihbighbour ing loca lities
Surakshit Raho Khush Raho initiative for Slum safety
Young Energy Savers campaign about energy conservation
Health Programmes: Free medical & eye check-up & blood donation camps
Sponsorship: Computers, Rainwears, Educational kits, scholarship etc.
National award for Excellence in CSR & Sustainability Awareness
Slide 26 Awards & Recognition
Metro Rail “Outstanding Contribution in Urban Transport” by 5th EPC World Awards (Knowledge Partner E&Y)
IT Distribution “Innovation award in Asset “Developer of the year – Management & Automation” National Highway” & Tolling by IPPAI Technology of the year ” by Construction Sphere Group
Safety Distribution “International Safety Award Quality “Golden Peacock Business 2015” by British Safety Council Excellence Award 2014” in to Cement business “Golden Peacock National the service sector Quality Awards 2014” in the service sector by Institute of Directors
Slide 27 RINFRA Well Positioned
Proven track record of operational Well diversified portfolio with stable efficiency cash flows
Amongst the least leveraged company in De-risked – All projects operational the infrastructure sector
To capp$italize on US$ 250 bn opportunit y Focus on debt reduction via asset in defence monetisation
... to capture emerging growth opportunities & create shareholder value
Slide 28 Thank You