Reliance Industries Limited · NSE:RELIANCE

Reliance Industries — CLSA Conference 2005

27 slides from Reliance Industries's conference presentation, September 2005

  1. Slide 1: Reliance Industries Limited Investor Presentation

    Reliance Industries Limited Investor Presentation September 2005 Coverage Reliance Reliance Industries Industries --Overview Overview Business Business Review Review Summary Summary www.ril.com 2

  2. Slide 2: Journey of Phenomenal Growth

    Journey of Phenomenal Growth 1992-1993 1999-2000 1st GDR issue Refinery & 2004 Net Profit (US$ Million) 1991 Petrochemicals 1800 complex started Trevira acquisition 1650 Hazira at Jamnagar Fortune Global 500 Petrochemicals 1,731 1500 complex 1997-1998 1350 Cracker 2002 1200 1982 – 1988 completion 10

  3. Slide 3: Reliance - Robust Growth / Current Capacities

    Reliance - Robust Growth (in US$ Million) FY 2000 FY 2005 CARG % (5 Years) Revenues 3,633 16,725 35.71 Net Profit 551 1,731 25.73 Cash Profit 857 2,763 26.38 Total Assets 6,733 18,422 22.30 Market Cap 7,644 23,560 25.25 India’s first and only private sector company to feature in the Fortune Global 5

  4. Slide 4: Changes in Global Rankings

    Changes in Global Rankings FY 2000 FY 2005 POY / PSF 4 1 PP 6 7 PTA 6 6 MEG - 5 PX 3 4 Global leadership in Polyester www.ril.com 7 Domestic Leadership & Global Rankings Leading Market Shares in India Leading Global Position 1 Polyester 4 Paraxylene Polyester 55% (Fibre & Yarn) Fibre Intermediates 7

  5. Slide 5: ROE & ROCE Trend

    ROE & ROCE Trend ROE (%) 30.0 23.9 25.0 21.9 20.0 20.0 16.1 17.0 14.8 15.0 10.0 5.0 0.0 2001 2002 2003 2004 2005 Q1 FY06 30.0 ROCE (%) 26.5 25.0 20.3 21.0 18.5 20.0 14.8 15.0 12.9 Sustained improvement in 10.0 ROE and ROCE 5.0 0.0 2001 2002 2003 2004 2005 Q1 FY06 www.ril.com 9 Coverage Reliance Reli

  6. Slide 6: E&P Portfolio

    Exploration Exploration&&Production Production(E&P) (E&P) E&P Portfolio „ Producing Assets - Panna- Mukta & Tapti „ Exploration Blocks - 35 blocks in India and one each in Yemen and Oman „ Exploration Acreage - about 330,000 sq.km. „ Coal Bed Methane - 5 blocks (4,000 sq.km.) A diversified and balan

  7. Slide 7: Exploration Acreage

    Exploration Acreage „ NELP-I „ Shallow Water Blocks :8 „ Deep water Blocks :3 „ NELP-II „ Shallow Water Blocks :1 „ Deep Water Blocks :2 „ On-land Blocks :1 „ NELP-III „ Shallow Water Blocks :2 „ Deep Water Blocks :7 „ NELP-IV „ Deep Water Blocks :1 GK-OSJ-3 „ NELP-V (not shown in the Map) „ Deep Wa

  8. Slide 8: Future of Gas in India

    Future of Gas in India „ Natural Gas is going to be the fuel of the 21st Century „ Environment friendly „ Lower price volatility „ More ‘efficient’ fuel „ Efficient and eco friendly transportation through pipelines „ Unfortunately, natural gas consumption in India has been constrained by availabilit

  9. Slide 9: Development Plan

    Development Plan Development Principles: „ Facilities planned for overall development of D-6 block. „ Drilling of wells and onshore Facilities proposed to be installed as per market demand (following a modular approach). „ Design and selection of equipment and facilities guided by: „ Proven Technolo

  10. Slide 10: Refining Capacity

    Refining Refining&&Marketing Marketing(R&M) (R&M) Refining Capacity World Asia Global Capacity Demand Asia Capacity Demand 90,000 30,000 25,000 85,000 20,000 80,000 15,000 75,000 10,000 5,000 70,000 2000 2001 2002 2003 2004 2005 2006 2007 - 2000 2001 2002 2003 2004 2005 2006 2007 Capacity in ‘000 bp

  11. Slide 11: Refining Capacity in China and India

    Refining Capacity China India India Capacity Demand China Capacity Demand 8,000 3,500 7,000 3,000 6,000 2,500 5,000 2,000 4,000 1,500 3,000 1,000 2,000 500 1,000 - - 2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007 Capacity in ‘000 bpd Source: PEL, BP statistical revie

  12. Slide 12: Reliance Refinery

    Reliance Refinery Crude Throughput Complexity Index 700 16 600 14 12 500 10 Petrochemical Component KBPSD 400 8 300 6 200 4 100 2 0 0 Jamnagar Singapore European Reliance, Supersite Supersite Jamnagar Asia Super European Supersite Supersite Reliance, Shell, US US Site Source: NEXANT/Solomon • Benchm

  13. Slide 13: Refinery Expansion - Key Factors

    Refinery Expansion - Key Factors „ Under - investment in energy infrastructure since 1990 „ Shortage in refining capacity exacerbated by strong demand growth „ Important structural changes „ Widening light-heavy differential „ Widening diesel-fuel oil differential „ New refining capacity unlikely to

  14. Slide 14: Opportunity for Reliance Expansion

    Opportunity for Reliance Expansion „ Robust demand growth outpacing refining capacity addition globally „ Economic growth continues to fuel demand – 2% globally and at 4-5% in Asia „ Positive outlook for crack margins, particularly for transportation fuels „ Extensive synergies with existing assets

  15. Slide 15: Petrochemical Industry & Economic Growth

    Global ethylene consumption (MMT) Petrochemical Industry & Economic Growth Global Ethylene Consumption & GDP 2005 110 2004 2 R = 0.99 2002 100 2003 2001 90 2000 1999 1997 80 1998 70 1996 60 1990 1993 1994 1995 1987 1988 1992 1986 1991 50 1985 1989 1983 40 1982 1984 1980 1981 30 10 15 20 25 30 35 40

  16. Slide 16: PE and Propylene Demand Supply

    PE Demand Supply World EOS MMTA MMTA 100 100% 45 100% 90 Capacity Demand 40 Demand 80 35 70 30 60 25 50 90% 90% 20 40 Op. rate 15 30 20 10 5 Op. rate 10 0 80% 0 80% 2000 2002 2004 2006 2008 2009 2000 2002 2004 2006 2008 2009 2004 – 2009 (CAGR) 2004 – 2009 (CAGR) Demand Æ 3.9% Demand Æ 5.3% Capacity

  17. Slide 17: PP Demand Supply

    PP Demand Supply World EOS MMTA MMTA 60 110% 30 110% Demand Capacity Demand 50 25 40 100% 20 100% 30 15 20 90% 10 90% Op. rate Op. rate 10 5 0 80% 0 80% 2000 2002 2004 2006 2008 2009 2000 2002 2004 2006 2008 2009 2004 – 2009 (CAGR) 2004 – 2009 (CAGR) Demand Æ 4.7% Demand Æ 5.6% Capacity Æ 4.5% Capac

  18. Slide 18: No Large Additions in ME Capacity till 2008-09

    No Large Additions in ME Capacity till 2008-09 Countries 2005 2006 2007 2008 2009 2010 (in '000 MT) Iran* 1,000 2,320 820 2,200 3,100 KSA 5,200 2,600 1,300 Qatar 1,300 Kuwait 850 Abu Dhabhi 1,400 Oman 1,000 Total 1,000 2,320 8,170 7,200 4,400 * Iranian capacity excludes 520 KTA Amir Kabir Complex wh

  19. Slide 19: Global Industry Outlook

    Global Industry Outlook…con’t „ Operating rates and margins expected to remain firm till 2008 „ Middle East projected start ups to lead to softening of margins, however this will need to be monitored „ “Responsible” pricing regime by ME producers likely to provide a stable margin environment given t

  20. Slide 20: POY Growth outstrips Expansion Plans

    POY Growth outstrips Expansion Plans World Asia KTA KTA 30000 30000 Capacity 25000 25000 Capacity Demand Demand 20000 20000 15000 15000 10000 10000 5000 5000 0 0 2000 2002 2003 2004 2005 2006 2008 2010 2000 2002 2003 2004 2005 2006 2008 2010 2005 – 2010 (CAGR) 2005 – 2010 (CAGR) Demand Æ 6.6 % Deman

  21. Slide 21: Polyester: Capacity Utilisation

    Polyester: Capacity Utilisation 100% India 90% S Korea 80% World 70% China 60% 50% 2000 2001 2002 2003 2004 2005 2006 2007 2010 India: High utilisation rate to continue – Reliance is at 100% capacity utilisation Source : PCI www.ril.com 41 Fibres: Polyester Dominance Reliance Investment in 1.4 milli

  22. Slide 22: Advantage Reliance

    Advantage Reliance PX PTA Capacity '000 MT Capacity '000 MT Exxon Mobil 3,300 BP 6,721 BP 2,500 Sinopec 2,755 Mitsubishi 1,750 Sinopec Group 2,015 FCFC 1,540 Reliance 1,646 1,956 Petrocel 1,510 Mitsui 1,400 LG Caltex 1,050 Reliance 1,350 1,980 - 500 1,000 1,500 2,000 2,500 3,000 3,500 - 2,000 4,000

  23. Slide 23: Global Industry Outlook

    Global Industry Outlook „ Polyester manufacturing is moving towards Asia and is aligned to the textile industry „ India and China are the future manufacturing bases with 80% of capacity presently located in Asia „ Indian textile exports to US has moved up by 30%, second only to China „ Low per capit

  24. Slide 24: Sectoral Stock Performance

    Sectoral Stock Performance Reliance amongst best performing stocks in the sector www.ril.com 47 Reliance: Superior Stock Performance 160 Indexed price performance 150 140 130 120 110 100 90 80 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Reliance BSE Sensex SP500 Chemicals MSCI Asia ex-Japan www

  25. Slide 25: Strong Fundamentals

    Strong Fundamentals „ Strong Cash flows ¾ Existing businesses generating cash flows of US$ 2.8 billion per annum „ Solid Balance Sheet ¾ Total Assets have grown from US$ 3.6 billion to US$ 18.4 billion over the last 10 years „ Conservative Gearing ¾ Debt to Equity ratio of 0.39, Net Gearing at 16% „

  26. Slide 26: Market Conditions going forward

    Market Conditions going forward „ Petrochemicals operating rates and margins expected to remain firm till 2008 „ Middle East projected start ups to lead to softening of margins, however this will need to be monitored „ Robust demand growth outpacing refining capacity addition globally „ Economic gro

  27. Slide 27: Growth is Life - Thank You

    Growth is Life Thank ThankYou You

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