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RIL Q1 2020 - 2021 Media & Analyst Call Transcript RIL Q1 2020 - 2021 Media & Analyst Call Transcript 30 July 2020, 19:30 IST Call Participant: Sh V Srikanth, Jt CFO, RIL Sh B Srinivasan, President, Reliance Industries Ltd Sh Kiran Thomas, President, Reliance Jio Infocomm Ltd Sh Anshuman Thakur, Head of Strategy, Reliance Jio Infocomm Ltd Sh Dinesh Thapar, CFO, Reliance Retail Ltd Duration: 92:56 minutes Presentation link: https://www.ril.com/getattachment/bdcfb486-df7b-48f0-b53a- a15cfd38d9bd/Financial%20Presentation%20-%20Q1%20Results.aspx Meeting Video: https://www.ril.com/InvestorRelations/FinancialReporting.aspx Sh B Srinivasan 0:00:00 – 0:00:42 (Introduction) Sh Kiran Thomas 0:00:42 – 0:30:46 (On Jio Platforms) Sh Anshuman Thakur 0:30:47 – 0:39:05 (On Reliance Jio) Sh Dinesh Thapar 0:39:10 – 1:11:35 (On Reliance Retail) Sh V Srikanth 1:11:36 – 1:32:56 (On Oil2Chemicals, Oil&Gas, Financials and closure) © Reliance Industries Limited 2020 1 Transcript: Sh B. Srinivasan 0:00:00 – 0:00:42 (Introduction) Today we will be talking about the quarterly results of Reliance Industries. We have a line-up of speakers about whom I just want to give you a heads up. On the digital services business, we have Kiran Thomas and Anshuman Thakur; Dinesh Thapar will walk us through the retail business performance for the quarter. On the O2C and Upstream business, Srikanth will walk us through our quarterly performance. Also on the consolidated financial results, Srikanth will walk us through the quarter’s performance. Over to you Kiran. Sh Kiran Thomas 0:00:42 – 0:30:46 (On Jio Platforms) Thank you, Srini. Hopefully I am audible clearly. Thank you everyone for giving us the opportunity to speak about Jio Platforms Limited. The entire vision for Jio Platforms Limited can be summed up in a single sentence, which has also been shared very eloquently by our chairman in his vision which he shared in this AGM, and obviously even prior AGMs. And that one phrase is: ‘To create a digital society, in India.’ And there are four key components that we believe lead towards creating the digital society in India. Foundational to bringing about the digital vision is connectivity, because if you are not connected, if you don't have rich and powerful digital connectivity, obviously you are not in a position to participate in anything digital. So that is the foundation of everything. That is where Jio as a group has spent the last nearly four years trying to bring about that revolution in India. Obviously, once you go beyond connectivity, then one is talking about digital solutions, and digital solutions could be to serve businesses, to what we call consumer platforms, and I will elaborate on each of those very shortly. Covering those solutions, and really foundation to creating those digital solutions is what we call digital technologies, which are disruptive in nature. And those technologies enable us to bring about those transformations in multiple ecosystems which are relevant to creating the digital society in India. Now let me touch upon each of those. So when it comes to connectivity, what Jio has done over the last 40 odd years is to create a very powerful pan India 4G LTE network. And this LTE network is not just for data, but we also power one of the largest voice networks anywhere globally using again voice over LTE as a technology. And even further, we have also launched on a pan-India basis what we call the narrowband IoT network, which is also an application or a function that writes on top of the LTE network. So with minimal incremental investment, we have been able to deploy a pan India Internet of Things network which is highly efficient, again running on top of LTE. And moving on to the next frontier is what we what we believe is the near future. Again, to offer wireline services through fibre-to-home technologies, work is going on now in the top 1600 cities, which would obviously address not just homes but also small and medium businesses and large enterprises. So that is the next frontier. You already have a critical mass of homes and businesses who are already connected on fibre, and I will have a little bit more to say on that later. Obviously, all of this, we are doing in such a manner that if a customer © Reliance Industries Limited 2020 2 already has a 4G LTE connection, and they are also signing up for wireline services, there are a number of areas where these two technologies work very well together. If you're at home, for example, your landline number can also be activated as an extension on your mobile phone. The same landline can also be discovered on your television through our set-top box. And even when it comes to things like tariffing, we have an ability for customers to get when you are signing up for fixed and mobile services from Jio. So those are advantages with consumers, to continue to engage, to deepen their relationship, even in the connectivity space, from wireless to wireline. Obviously the exciting future, again we made an announcement about this in the in the AGM, but the next frontier, obviously, globally, and we believe this is the next frontier in unlocking not just mobility solutions, but 5G has the capacity, even to augment services that we can provide also to fixed premises. So obviously it plays very well, both with our 4G LTE base as soon as the wireline base that we are continuing to roll out. And, obviously, here, the world is at the beginning stages and we believe that actually India can be on par, if not set the pace for some of these innovations that are being brought about globally. Moving on to the solutions that I want to talk about, and this is where I think really Jio Platforms Ltd plays an important role. For those of you who may not have the context, Jio Platforms Limited has been created in the express purpose to develop our own intellectual property and our own homegrown solutions which initially can be used to support the RIL growth businesses, whether that be in telecom, whether that be in retail, financial services, education, healthcare, agriculture, or even manufacturing. So Jio platforms limited plays the role of really providing that digital solutions and digital intellectual property to multiple of our operating companies including RJIL, which happens to be an operating company that we have established in telecom, but it is also a subsidiary of Jio Platforms limited. But what we have done really in Jio Platforms Limited is to develop the full 5G stack internally. Unlike when we did 4G LTE where obviously it was mostly partner-led. And over the last four years, we have been able to also develop, along with our partners, many interesting solutions. But along the way, what we also achieved was to replace many of those components with our own homegrown solutions, and that gave us the confidence to test our feet with the 4G solution using some of the components that we built. And now they become even more ambitious, and what we have said is the entire 5G play, we are in a position to develop a homegrown stack and deploy it first we didn't we did the Jio’s own network in India, but very soon thereafter, once it is proven within our own network at India scale, we are able to then take that as a complete end-to-end solution to other telcos globally as well. And that is the broad theme for Jio Platforms Limited, which is to develop solutions, established those solutions in an operating context at India scale through the Jio as well as RIL operating companies, stabilize and grow and improve those solutions with hands on experience that we that we will develop as the as we deploy those services and acquire customers and serve customers, and then based on that end-to-end credentials: we are, I believe, best positioned to offer a full, not just a product but also an operational solution through managed services, to customers deciding to replicate what we have achieved here in other parts of the world. And, therefore, I think the real fulcrum of what we are trying to achieve is to develop those vertical solutions across these multiple ecosystems that I mentioned earlier, develop it and stabilize it here, mature it here in India, and India we believe provides a very stringent market where we have things like the length and breadth of the country, which is a very large country, we have to be very innovative to create cost-effective solutions and business models. In addition, I want to call out a few things which may not be very obvious. Obviously, both with Jio to begin with, where recharges and other things we have done a number of digital innovations to make customers even more empowered towards consuming our services, but now as we enter in partnership with Reliance Retail into what we call our new commerce model, we are again creating very very innovative solutions built on the digital capabilities that we have created within JPL. © Reliance Industries Limited 2020 3 In addition, and this was again an announcement that we made during the AGM, we have established very good strength, not just in software but also in hardware. We are able to design very innovative hardware products. Now we are becoming even more ambitious to develop a host of new devices.
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