Operationalising Hyper Growth Platforms of New Value Creation for A Prosperous and Inclusive India CHAIRMAN’S STATEMENT 39th Annual General Meeting ‘Thursday, September 1, 2016 Q Reliance Industries LimitedMy DearShareowners, ‘Avery warm good moming to each and every one of you. Itgives me great pleasure to welcome you tothe Annual General Meeting of Reliance Industries Limited. ‘The Company's accounts for the year ended March 31, 2016, along wih the Directors’ and Auditors report, a Letter to the Shareholders, and Managements Discussion and Analysis, have already been circulated to you With your permission, | would ike totake them as read, 1, Reliance Jio— Our Digital Services Ini Dear Shareholders, | start withthe newostand youngest member ofthe Reliance family -Jio. Letme begin my words witha dedication, Inthe journey oftime, there comes a few ife changing movements. (Our Prime Minister Shri Narendra Mod's inspiring vision of “Digital Ina” is one such movernent Jiois dedicated to realizing our Prime Ministers vision for 1.2 billion indians, io wil give the ‘power of data’ to each Indian to full every dream and to collectively take India to Global Digital Leadership. With these words, | want to dedicate the commencement of Jio to the Digital India Vision of our Prime Minister, 1.2 billion Indians and india Estoomod Shareownors Why did we call our venture Jo" Why is ourmotto JiO- DIGITAL LIFE? Permitme toaticulate the philosophy that has given bith odio, ‘Tho woridis atthe beginning ofadlgital revolution Anything and everythin that can go digitalis going digital -atan exponential ato Fasterthan youand! canimagine. \Whethoritis manufacturing, commorce, healthcare, education, entertainment life is going Digital. ‘Through the ages, information and knowledge have driven humanity's progress. When you put the power of data connectivity, computing, software and information together, the price/performance of everything changes drastically. Everything gets disrupted, ' believe in the next 20 years as human civilization, we wil collectively achieve more than whathas been achieved in the last 300 years. We are atthe beginning of anew era for humanity. In this era, if you are not digital, and if you don't have globally competitive digital tools and skills, you simply will not Youwillgetsisrupted. Youwillbe outcompeted. Youwillbelettbehind. You will become irrelevant. India and indians cannot afford tobe let behind. Today, ndiaisranked 155thin the worldfor mobile broadband Internet access, outof230 counties Jiois conceived to change this "have no doubt that wth the launch of io, Inaia's rank will gup to amang the top ten. 4.2Billon Indians cannotbe lftbehind a the word enters anew era We have the youngest population in the wort.Give them affordable digital tools. Give themthe skills. Give them the environment, They will surprise us. Its this opportunity to transform India, and transform the lives of our 1.2 Billion Indians that motivated Reliance to investinthis space. And Jos the result, We have called tJio because Jio means olive “There is nothing more precious in this world for the rich or the poor than Life. {believe it isthe fundamental right of every Indian to live alife of freedom, a life offulflment and to realize their fullest potential Digital Technologies open the doors otis ife-the DigitalLife, However Life cannot survive without oxygen. Datais the oxygen of Digital Lite, and oxygen must neverbe in short supply. Worse stil, the supply of oxygen for digitallte must never be unaffordable to any user. Doing so shows disrespect fori Jiorespects Lite Whichis why Reliance created J. Jiois more than ust business fous. Jiis oursolemn commitmentto enrich theite of every Indian Jiomeans TO LIVE andte BEALIVE, To every opportunity and realize the potential of every Indian. Doar Shareowners, The world's demand for Digital oxygen, thatis data, is growing explosively. Jio's missionis tomeetthis exploding need for India, and to take ournation from data shortage to data abundance. Ando enable Digital Life fora Digital India. Digital India-whore the Digital Life ofno Indian sever threatened by scarcity, poor quality or unaflordabilt of data Where accossto information knows no bariers \Where quality education reaches the mostinaccessible comers ofthe country arivenby digital learning, Where quay healthcare percolates right upto the remotestregions powered by e-Healtheare Where farmers are empowered with real-time Information tobe connected with global markets Where mobile and e-banking ensures financial Inclusion \Where connected Indians drive innovation and the world looks to Indafor thenext bigidea. ‘Thisis ourPrime Minister Sr Narendra Modis Digital India vision ‘And Jio's mission is to realize this Digital India vision, and to ensure that Indians have the highest quality and the highest quantity data access anywhere inthe world, at ihe most affordable prices. Ladies and gentlemen, Jiisanentir ecosystem thatwill alow Indians ove DigitalLife tothe fullest. The sio ecosystem stands tall on FIVE fundamental pillars: 4. The best qualty broadband network withthe highest capacity 2. Aworid affordable, 4G smartphones andwireless IP devices 3. Compelling applications and content4. Supororaigital service expariences, and 5. Affordable and simplotarits LLetme star withthe firstpillar—the network ‘Allcommunication on the internets done using acigital language called the Internet Protocol -orIPfor shor. ‘Alsmartphones,allcomputer, all servers ~infact—each and every participant onthe Intomet speaks IP, In the ensuing future, even household items ike Televisions, refrigerators, air-conditioners, washing machines and even light-bulbs willtalkiIP Industral equipment, instrumentation systems and control systems will speak IP. Publicinfrastructure tke trafic lights and safety cameras will speak IP. Thisis called the Internet of things. Mos .gacy telecom providers have not bull thelr networks for data or the internet They have bull their network to support voice and SMS, {As the Intemet revolution caught on, they have had to retrofit thelr legacy networks to deal with data and IP as an afterthought Imagine using a translator to speaka language that you don't understand, versus speaking your mother tongue, Themore youhave to speak, the more cumbersome the translation process becomes. Transiationis slow. Itis inefficient. tis unnatural ‘As they are confronted with the explosion of data usage, legacy Telcos have been trying to push this unnatural acttoits breaking point. Jio,onthe ther and, has creatad an all-P network. ‘This means thatthereis only one language spoken on the Jio network ~the language ofthe internet With the launch of Jo, India’s digital mother tongue wil be IP. Jio's iP. With ths single igital mother tongue, wewillconnectall of india into single family anda single united nation ‘The alL1P design also makes Jo's network the mostextensive and future-proof networkin the work Itisanetworkbuiltfor ever increasing volumes of data and thebest thatthe internethas toe. dois DATASTRONG NETWORK BUILT FOR THE INTERNET from the ground up. Today, the Jo's 4G network already covers 18,000 cites and towns, and over 2akh vilages. By March 2017, we wll cover 90% of India’s population, Jos the only mobile networkin the country thatis ONLY 4GLTE. ‘This moans thatthere is only 4G onthe Jio network and not“‘mostly 2G, sometimes 3G and oneon-a-while 4G" Infact itis the largest ONLY 4GLTE networkin tho world We have also daployed the largest 100% Voice over LTE (or VoLTE) network. VoLTE provides crystal clear voice and video quailty instant cal connectivity the least call drops and a unique ability se data and voice simultaneously Today, we know that networks are moving to High Definition Video. JJiohas the only network conceived and born as a MOBILE VIDEO NETWORK fromthe ground up, ‘As we progress, the Intemet could offer even more compeling content than video, things like virtual reality and ‘augmented realy Jiohas the necessary foundation tobe aleaderin these areas as wellItis future ready and itcan be easily upgraded to support even more data, as technologies advance on to SG, 6G and beyond. Because ofthis, we willbe able o provide an abundance of high quality high speed data. ‘Ando transform India from a highly priced data marketto one with the lowest data rates anywhere in he wort. Now et us lookat the second pila of Jo's Digital Life— Devices, ‘As a result ofthe proactive work done by Jio and Reliance Digital teams with all leading device manufacturers, more than 70% of al smartphones sold inthe country are 4GLTE smartphones, The timeis near when nearly every smartphone sold in India will support 4G LTE. ‘And as | had predicted during the last AGM, there are 4G LTE smartphones available in India today below Rs 4,000, But! belive this isnot enough, Alarge number of phones bought in india are stil feature phones ~ and not smartphones —because large sections of society find even the current smartphone prices unaffordable, So, today, Reliance Digital is introducing a lineup of super-affordable 4G LTE smartphones under our popular LYF brand, starting at Rs 2,999. More feature-rich models are available for progressively higher price-points like Rs 3999, Rs 4999 and Rs 5,999. And for those users who want to hold on to thelr 2G/3G smartphones or Wi-Fi capable feature phones, we are Introducing our 4G LTE personal router, called Jio-Fi, for Rs 1,999. With this, Jio and Reliance Digital have ensured that entry price for using a 4G LTE networks affordable forall Indians. [Now let us lookeat the third Digital Life pillar— Jo's Applications and Content Jo offers a suite of applications that brings you the very best across the categories of media, entertainment, money ‘and essential ulti. With the JioTV entertainment app, “Anytime is Prime-time” You can watch more than 300 live TV channels including 40 HD channels with access toll oflast week's programming atany pointintime, The JioCinema app brings the cinema-theatre at your fingertips. Watch ad-free, HD movies from the largest library of 6,000 movies, more than 60,000 music videos and 1 lakh episodes of TV shows in 10 languages, The JioMusic app makes Ulira-HD music reality, witha library of 10Mn songsiin over 10 languages. sJioMagazine and JioNews give access to thousands of latest magazines and your daily newspaper update. sJioMoney is your personal wallet that allows youto go cashless, | believe that these apps will really showcase the capabilties of Jio's powerful network, and create a magical experience for Jio customers, With this in mind, 1am pleased to announce today that the Jio-Apps bouquet - which Is worth Rs 15,000 for an annual subscription —will be available COMPLIMENTARY for all active Jio customers up to 31" December 2017. [Now the fourth DigitalLife pillar—the Jio Service Experience Forthe past few months, we have been offering Jo services to some sections of users on a preview basis, andwehave hadan unprecedented response. Ina, ve deployed a paper based process to on-board a few lakhs ofthese applicants. Weave experienced first-hand, how inefficient such a manual process can be. Many of the applicants hadto wait for multiple hours, and some even overnight, to gettheirservices activated Thisisnotacceptabletous. We have redesigned the Jo sign-up experience and made it 100% digital using an Aadhaar based eKYC process. \We arerling this out starting with Mumbai and Deli, and then the top 8 cities of India where we are seeing the most demand.Over tho next4to 6 weaks wo willhave this procossinallour stores With this digital process, we wilhave a capacity to acquire arilion customers a day. IrequestallJio users tokindly bear with us fr any inconvenience, untilwe fully implementthis process. We wanttomake the on-boarding experience for sio users as simple and dalghttulas possible. ‘And with eKYC, in a few weeks, any Jio customer carrying an Aadhaar card will be able to walk out ofa Jio store wth a ‘working connection within 15 minutes. We areas planning to extend eKYC activation to our customers doorsteps Weare ling out this faci in select markets, and willbe introducing this nationally For ourcustomers'journey post sign-up, we have created an app calle Myo. Mydiois a digital companion for every stage of your Dita Lie Itis the one place from where you can convanientl initiate the signup process, get ongoing access to your accounts, check your balance and usage details, make payments, chat with a customer service agent, and even find and launch all Jio applications from one convenient location. Even yourbills and invoices willbe digital and available in real-ime on Myo. We want to transform the entice service experience and are committed to working with you to make your Jio journey transformational and delightful Finalyothelast, andthe most awaited pilar-Jio Tarif Jo's pricing principles are about solving customer pain points. Wehave aivays putthe customer tis. Andifthis means changing the industry, then we are prepared todos. LLetme take youthrough three simple principles on which Jo's tarts are bul: First principle: Customers should pay foronly one service, ether voice or data Notboth Word over operators charge fr only data while voice and messaging are essentially foo. S0,today, have great pleasure in announcing a revolutionary concept forthe Indian market. be ABSOLUTELY FREE, Allvoice calls for Jio customers The era of paying for voi calls is ending Jie will usher India into anew era.on the Jio network. Across India. To any network. Always. Andin the spirit of One India~no roaming charges also. Jiowill putan end to VOICE CALL charges in Inia, No dio customer will ever have to pay for voice calls again. ur second principles data mustbe affordable. Jio's advanced technologies and scale allow us to provide cuting edge services atafraction ofits traditional cost. Ielieve that sio customers shouldbe thefrstto benefittrom this Current market practice iso charge abase rate of Rs 4,000 10,000 per GB of datal Jiowill ave abase rate which is more than ata 90% discount over the industry. (Our data plans go even further, wth an effective rate for data of only Sp/ MB, or 8s 50GB. ‘And the more data you use, the lower the rate believe thatthose are the absolute lowest data rates anywhere in the word io makes india the highest quality, most affordable data marketin the worl(Our third principe is thatthe pricing structure should be simple for every indian to understand Today, there are more than 22,000 telecom tariffs across the country, slo's pricing structure has 10 main plans. These plans are created to ensure that every user can easily find a plan that fits their budget and their data usage needs. Without getting lstin aforestoffalse choices, Today Indian ctizens pay alowrate for voice services, and very high rates for data Jiowill provide “tre voice”, and removes customer pain points of 1. BlackoutDays, 2. BilShocks, and 3. Non-ransparent, dtfcultto.understand bills Now, lat’ take look at Jo's Launch Tarif Heretheyare LLetme pointoutsome key aspects: 1. We have price points starting from Rs 19 forthe occasional data user, toa monthly Rs 149 plan forthe light data user, allthe way up toa monthly Rs. 4,999 plan for the heaviest data user. 2. Youcan see the simple ineup of 10 main plans 3, Ineachofthese plans, we have provided the lowest LTE data rates in the world, No separate upfront commitmentto gat these rates. 4, Data packs available in the market have an effective rate of about Rs 250) GB. With Jio, you pay 5 to 10 times lower—Rs 25-50/ GB depending on yourdata usage. 5, Another highlights unlimited night LTE data, This is designed to pass on the idle network capacity a night to our Customers. We are also designing vio applications in such a way that our customers can program their downloads to happen during night-ime, when they have unlimited data, So, even when your are sleeping, the network is workingfor youto reduce your data cost. 6. Jiois rolling out Wi-FT hotspots across India. By the middle of next year, we pian to deploy nearly 1 milion Wi-Fi hotspots. ‘Sowe have added adkltional Wi-Fi data in our plans so that our users have another way to use broadband data in colleges, schools and public places. 7. Letmeassure you that our dio voice calls, across India, willnever be charged to you on any lan. 8. TheIndustry today charges an average of about 0p! minute for domestic calls. With Jo you pay Op/ minuto 8. Forintemationacaling, Ji plans give youthe best-ever Intemational calling rates, 10. And.each ofthese plans come with an unlimited subscription to every Jio@pp /Asyou can see, Jo tare ae expliity designedto give you the fl reedom and exit to use as much dataas youwant. Infact, itremoves the fear of high data charges. Now indians wine more have totum offdata on their phones, They can use maximum data Doar Shareowners, Butthats notal Reliance has alvays maintained that Students are our nation’s future The students of today are the knowiedge-workers of tomorrow, and in their success lies India's abllty to full its digital destiny‘Students, more than anyone else, need access to data and digital services to hone their competitive edge, and to ‘compete inthe connected global marketplace. We, at Ji, want to extend a special consideration tothe students of our country. Today, we are unveiling a Special Students: scount Offer: Any student, with a valid student ID card, willbe able to get 25% MORE data on Jio's main tariffs In addition, Jio is in the process of connecting the majority of India's schools and colleges with Wi-Fi to provide broadband wireless data acoess to students in heir classrooms, Jia has also kept in mind two other segments that are traditionally heavy users of data ~ Enterprises and Platinum customers. Enterprises, both large and small are the engines ofour economy. ‘The power ofthe data strong Jionetwork can transform these enterprises to digital businesses. Allenterprises have tobe digital to compet inthis new word Jiowill partner wth ll segmonts of entorprises and offr them competitive and unique customized solutions. Forourplatinum customers, Ji0is working to raise the bar when itcomes to Digitale experiances, so is partnering with a number of premium technology brands to create a set of unique solutions that combine these partners’ products with the power of Jo's network and digital services. Further, we have high-ond tariff plans that are especially suited for these global citizens with features lke the best international roaming ates, and access to the most exclusive intemational content. We even ensure that they have the best coverage in heir homes by installing tiny 4G LTE boxes, called femto-cels, within their premises, (On top of allthis, we will also provide our platinum customers witha series of specialized, white-glove services, suchas concierge services and video call centers, \Wewillbe announcing mare details ofthese partnerships, tariffs and services inthe coming months. Frionds, LLet'snowtake a momentto review the powerful offerings that Jiohas unveiled today: 1. India's only allIP data-strong, made-for-mobile-video, Only 4G LTE, future-ready network 2, TrueAGLTE smartphones starting from Rs 2,999 and Jio-Fifor Rs 1,999 that enables ll Indians to migrate to io's Data Strong network JioApps subscription worth Rs 15,000, complimentary until 31st December of 2017, Instant ekYC digital actvations ~in the store and athome MyJio, a digital companion app for every stage of your Digital Life Free Voice calling. Across India, To any network. At all times, And no domestic roaming charges. The era of paying fr voice ends today, 7. ‘The simplestand the mostattractive Tarif Plansin the market, with the lowest data ates anywhere inthe world 8. Allcomplextelacom charges eliminated, They willow Restin Peace. 8. Special oferfor Students with 25% more data & incentives to use mare 10. io services for Enterprises to transform them to Digital Businesses, and ‘1, White-glove, exclusive services and features for our Platinum customers But ‘There is ONE MORE THING! ‘We are announcing today, that starting coming Monday, the th of September 2016 slo's Data, Voice, Video and the full bouquet of Jio applications and content will be available for EVERYONE, absolutely FREE, till 31st December 2016.We are calling this the JIO WELCOME OFFER, Thisis perhaps the largestintroductory offer anywherein the World Again, |want to assure you, that this Welcome offer will enable all to try Jio DigitalLife, absolutely free, to their hearts content, upto 3tst December 2016. ‘Sowhy are we doing this? With the J]O WELCOME OFFER: 1. Firstly, every Indian gets to enjoy Jio Digital Life. We Indians have come to appreciate and applaud Gandhigitl. Now we can all do “Data-gin’, which is an opportunity for every Indian to do unlimited good things, with unlimited data, 2. Secondly, every user gets to experience and get comfortable with Ji's digital service experience ~ especially Billing & Payments 3, Third, Jo users can experiment with Jio Digital Life, and personalize Jo's offerings in a manner that best fits theirusage. 4, Fourth, Jiogetstotestand stabilize Jio' interconnect with other operators and to ensure superior voice qualiy for calls to other networks 5. Finally, and most importantly, Jo and Jio customers, gets to co-create and build the best network experience together. We will use the FREE WELCOME OFFER period to get valuable feedback from our customers and to iron outallthe defects that we jointly discover Doar Shareowners, Inaddition tothe announcements made today, Jiohas a aumber of other interesting ntatives inthe pipeline Letmementionafew ofthese, Startngin solect ties, sis rolling outa ibertohome wireline network ‘Thisinitiative wllpush the power of data even further, and wil offer data speeds upto 1 Gigabitper second. ‘Again, this on par withthe most advanced wireline offerings anywhere inthe word. COurplanis to progressively extend this network tomore and more cites. ‘Attho same time Jo willalsobe extending this optical fiber network to enterprise locations, \We intend to provide muit-gigabit per second enterprise-grade wireline data connections that are on par with those in the developed world Noxt,Jioisalso partnering with some of the leading digtaland Internet playersin the word Together with Jio, these partners are keen to showcase the full power and range oftheir offerings to Indian customers, Inmany cases, we are working jointly to create frst-ofits-kind solutions that re unique to the Indian market, We also have plans to partner with thousands of Indian entrepreneurs, whose digital ventures can bloom inthe ground thatviois preparing. For this purpose, we have created a Jio Digital india Startup Fund and are also working to create Digital Entrepreneurship Hubs in key cits and towns of India, uraimis to build a platform for young Indians who want o create digital businesses ofthe future, ‘The Jio Digital India Startup fund has set aside Re 5,000 crores tobe invested over the next years, Intarms of Digital solutions, an exciting new area's e-commerce, where Jiois working closely wth Reliance Reta In the coming months, we also plan to introduce apps around Education, Health, Rural Livelihood, Agriculture and ‘many more categories because we truly believe tis time for Digital Life to reach the remotest comers of India |will regularly apprise you ofthe progress we make. DearFriends | stand before you as a very proud leader of over 60,000 Jio employees across India,‘Average age atsiois 30 years. Ji @ creation ofthe young, by the young, and forthe young, Akash, and Isha —both 24—our directors at si, have been hands on leaders. ‘Thoy represent the large contingent ofless than 30 year olds ato | wantto tell all our young people at Jo - Jiois what tis because of your passion, ownership, and anatitude of‘can do" Youhave proved, that given an opportunity, Indian youth can achiave the impossible and be better than anybody inthe world | wantto appreciate and thank each and every one of you Jio employees forthe contribution toi. ‘Alofyou have made Jiowhatitis today. Bomforthelntemet. ‘And bom asa customer obsessed organisation, Youare the founders ofa revolutionary mavementthat puts the power of DigitalLife in the hands of 1.2billon citizens of the largest democracy inthe world, Ihave always setimpossible goals forthe Jio team. And they have exceeded my expectations, Today, set a target for team Jio to acquire 100 million customers on Jio network in the shortest possible time, and create anew world record, This translates to a data usage of 250 Crore GBs a month, and | am counting on the Jio network team to ensure that sis all-IP,only-LTE network delivers flawiessly withthe highest qualityin the world Jiois proud ofallthe channel partnersithas created wih Reliance Digital ‘Across India, we have over lakh partners, and we consider thom part the dio family Inthis cigtal age, we are committed to their continued prosperity by introducing new win-win opportunites. Together withallour partners, the Jo family is nearly 50 lakh strong Thisistho employmentacross India that Jiohas created Dear Shareowners, Athistime, also wantto direct my words to another important constituency —existing Indian telecom operators. Healthy compettion the lifeblood ofa vibrant economy. tis the engine that drives innovation and customer value No doubt, llof us operators will compete vigorously inthe marketplace lam also sure that, while doing so, we willinspire each other to rise to even greater heights in our questto serve Indian customers. However, Incumbent operators have significant advantages over new entrants, since incumbents have well established networks and existing customers. New entrants requitefairaccess to both. Therefore, the onus is rightly onthe incumbent operators not to misuse their market power by creating unfair hurdles, |when itcomes to providing points of interconnect between their networks and Jio's network ‘Such hurdles will serve only to create @ poor experience for Jio customers who are trying to make calls to incumbent operators’ networks. In fact, in the last week alone, Jio customers suffered over 5 crores call failures to other networks because of insufficient interconnect capacity provided by incumbents. Giving the impression to common Jio customers that voice is nat working, when actually the incumbent operators are deliberately dropping cals.Thisis the reason why telecom operators have legal obligations, as part oftheir license conditions, to provide Points of Interconnectto other operators. Likewise, they have an obligation to also not to limit customers’ right to migrate to Jio using Mobile Number Portabily. | appeal to my fellow operators to do their par, both in letter and spirit, to create a fair and reciprocal framework of co- ‘petition thatis good for India and good or Indian customers, Dear Friends, Now, I wantto spend a few minutes talking about what Jio truly means forallof us. Firstly, as | mentioned before, Jo is about affordable, high quality and abundant data, enabling Digital Life for Digital india ‘Secondly, Jiois about connected Inteligence, ‘There aretwokinds of inteligence in the world machine inteligence and human imagination Now combine the power of 6 billion brains with all the computers in the world ~ that is what connected intelligence Imagine the power that we willbe putting in the hands of common Indians, if we can give them a smartphone in their hands and use an always-available, broadband connection to linkthemto the power of the Internet, Third sos bout doing thingsin asmart, simple and secure way. Digitaltechnologies gives us an opportunity notjustto do thins lite btbeter,buttoreimagine how wedo things, What used to take hours of skied people, isjust few clicks on your mobile Thats smart ‘There are many parents and some grandparentsin the audience today, and you know that even a3 year old can use a smartphone. That's simplicity ‘And we have ensured that we treat all the information that flows through our networks are handled in the most secure manner possible. Finally, Jiois also about bringing people together. ts aboutinspring peopleto join a movement. Jioisnotabout Reliance. Butitis about you, our family, our friends, our community and al Indians together in a movement to embrace and win in the digital world Friends, When itcomesto india, lamanetemal optimist, have no doubt that Jo and Jio-enabled Indians will ereate a whole new digital economy, and we willwitness a period of Unprecedented growth, empowerment, employment and prosperity for ournation. To putit simply, everything tna Jo believes, and everything that sio does, is driven by avsion ofthis future, ‘Afuturo, whore every Indian can say withouthesitation that with Jo, Lifes digital AndLifeisbeauttul Doar Shareowners, With great humility and greatlove, | present Jo Digital Life to the nation, and invite each and every one of youte sigh up ‘and experience Jio services first-hand. ‘Andtoall my fellow Indians, have @ promise and an appeal From Sept: India will change forever. invite you to come and participate in this change. Letus be this change together, and Jio together. 02. Strategic Perspective DearShareowners, With this historic announcement of Jo, letme now tum to our traditional format. We are meeting ata momentous timein our company's history Five years ago, we put immense faith in India and undertook the largest capital expenditure programme by any company in India's history \We demonstrated our faith by investing over Rs.250,000 crores, alin India Indias now he fastest growing economy nthe world and we are proud tohave invested nits growth. We have invested more inthe last 5 years than inthe first 35 years ofthe company. Weare investing in excess of 110,000n our petrochemicals and refining business for growth Ikimproves our cost postions, strengtvens integration and adds new products o our portfolio, We are also de-risking this business model by transitioning from a cyclical commodity type earnings profile to an annuity ike strong cash-flow generating portfolio. In the past two years, our eamings have grown while oil prices have dropped from USD 100 to below USD 40 per barrel, demonstrating the success of the new business model Inadition with Jio, we are bringing to all Indians the most disruptive technology of this century — mobile internet | fiemly believe that this is @ once in @ generation opportunity that we have seized not only to transform the lives of rillions of individuals and small businesses but also to create unprecedented value forall our stake holders. We are also going to bulld onthe foundation of our successful retail business by initiatives that offer fulfilment through ‘multiple channe!s and an unparalleled breadth of products and services, (Our petroleum retailing business is now a part of overall etaling as also a very large distribution network for mobile and digital services, (Our consumer business has media & entertainment, digital services and retailing We are creating a very consumer centric business founded on technology, logistics and customer satisfaction as its defining principles. There are very few other parallels of creating such a new business anywhere in the wortd. ‘Aswe fully execute ths strategy, we willhave among the most diversified grow oriented businesses globally. We will also be a proxy forthe new India thats transitioning to become an economic super power. With these investments | state with pride that we are the largest contributors to both the visionary Make in India and Digital india movements of our Prime Minister. 3. Business and Financial Performance Dear Shareowners, am delighted to report yet another year of record breaking performance by your company, Thenet proftforthe year stood at Rs 27,630 crore, the highest nthe Indian corporate sector, (Our operating and net profits grew by 14% and 17% respectively. Reliance demonstrated among the best earnings growth not only among the large companies in India but also among the strongestin our global peer group. We set several milestones during the year The grass refining margin at $10.8/barrelwas the highestin 7 years, Its also among the highest in the industry globally and at a record outperformance relative to Singapore complex refining margins. Ourpetrochemical business had the highest ever volumes and earnings,Its margins were among the top 5 companies globally. We had record net profits despite no contribution from our upstream business and largest ever capital expenditure inayear. (Our integrated business model combining strong downstream positions and risk management enabled us to grow profits despite softoll and gas prices. urcapital expenditure in the year wasin excess of Rs.112,000 crore, Thisisnotonly the highest capital expenditure by us na single year. Itisalsothe highestby any Indian company everina year. We have funded this huge capex programme while maintaining a conservative balance sheet structure and our investment grade eveditratings, (Ourstrong credit profile helps us access local and international debt markets to alse funds at very competitive rates, Dear Shareowners, Reliance is India's largest exporter accounting for 8.5 % of India's total merchandise exports with a value of Rs. 146,855 crore and access tomarketsin 110 countries. Reliance isa significant contributor the national exchequer. Reliance paid Rs.23,786 crore of customs and excise duty during the year, which is almost 4.8 % of India's total revenuies from customsand excise duty. Reliance is also the highest Income tax payer in the private sector in India and paid Rs.7,826 crore as income tax during the year. 3A, Petrochemicals Dear Shareowners, Petrochemicalsis one ofthe core growth engines of Reliance. Cur business today consists of polyesters, fibre intermediates, polymers, synthetic rubbers and a varely of chemicals and solvents, This diversified portfolio is integrated with our refinery and has delivered amongst the best margins globally for over 2 decades, This segment achieved record EBIT of Rs. 10,221 Crores, representing a 23% growth, year-on-year and in tum dlivering one of he best performances in the glabal petrochemicalindustry, We arenow investing to double the capacity ofthis business, We are building amongst the world's largest and mostintegrated crackers in Jamnagar that wiluse “off gases" fromthe refinery as feedstock with a capacity in excess of 1.Smmtpa This unique configuration is possible only dueto the scale and complexity of our refinery. Itis a matter of great pride for al of us at Reliance that we can execute a project ofthis scale at about haif the capital costof similar crackers being builtin NorthAmerica, This crackers being built at Jamnagar, which is taday the busiest industrial site in the world with over 120,000 people engaged in project execution, We have made substantial progressin ths project and targetitto be mechanically complete by December ofthis year. Our eracker portals currently dependent on domestic sources of feadstock including from our refinery. ‘The portflioneeds dedicated long-term supply of feedstock for sustained competitiveness. Ethane isthe feedstock for over 65% of eracker capacity in North America We were the first company globally to conceptualize large scale imports of Ethane from USA as feedstock for our cracker portfolio, This projectinvolves dedicated ships, pipelines and modifications to existing facies. 2The ships are expected to be delivered over the next 2 quarters and the full project will be ready by the end of this financial year. This innovation will provide us feedstock assurance and lexbilty forthe long term, We are global ieadersin the polyester chain, We are making investments to meet the ever growing demand for nation's clothing, lifestyle products and water conservation, Last year, we commissioned 650,000 tonne Polyethylene Terephthalate (PET) plant and state-of-the-art 2.3 milion tonne Purified Terephthalic Acid (PTA) piantat Daho} These plants are operating at name plate capacity and serving both domestic and export markets, \We are expanding our polyester presence in executing one ofthe largest PX plants inthe world at Jamnagar, The new Paraxylene (PX) plant is mechanically complete and pre-commissioning activities have commenced with production slated to beginin the nextfew weeks, We arealso the largest domestic producer of synthetic rubbers. Last year, we commissioned our Poly-Butadiene Rubber plant and are close to commissioning our Styrene Butadiene Rubber piant These investments will position Reliance among the top 10 petrochemical players globally wth a portfolio of products that continue to meet the growing demands of India, The petrochemical business will have a unique earnings model based on integration, top-decile cost positions and annuity earnings stream, 3B. Petroleum Refining Dear Shareowners, Letmenowtumto Petroleum Refining business. The refining business continues to be a significant value driver for Reliance, accounting for over 60% of its earnings lastyear. Global oildemand growth at about 1.8 milion barrels per day was among the strongest seenin the last five years. Reliance delivered yet another stolar performance, delivering EBIT growth of 48.1% year-on year, in a period of continuing volatility. Currealized margins were amangstthe highest globally. We now have a track record of over 15 years of operating this business with the highest standards of safety and dolivering among the best turns on capital Ourrefinery business is truly global We exportto every majormarket nthe word. We continue to be.a major supplier to every large rtaler and traderin tho world Nomatterhow you travel globally, by car, aor train --youwould probably be consuming our fuels. Weare also etaling ful rom over 1000 outetsin india In india, wo sollt other all companies, ransportundertakings andailines (Our Aviation Fuel stations are present at 25 alports across India and these fuel an aircraft every 4.25 minutes on an average, We are now making a large investment to ensure that our refinery complex has amongst the lowest costs of energy globally We are taking petroleum coke and converting it to syngas in a highly complex high pressure and high temperature process. IRisone ofthe largest clean initiatives in the world.We will add six-fold value to petroleum coke making this investment, one ofthe most productive, These gases willbe. source of fuel forthe refinery complex.as wel as feedstock for petrochemicals. Thisis the largest project ever executed globally ofthis scale and dimensions, We are now close to completing the construction ofthis mammoth project and target to be mechanically complete in the frsthalfof nextyear. 36. Oiland Gas Exploration And Production Doar Shareowners, LLetmenow comet the performance and plans fr ur Exploration and Production (E&P) business, Weare proud of our partnership with BPin the domesticportoio, (Ourk DB blockhas produced 2.6 TCF of gas and 29 million barcels of crude ol since commencementf output We aromaking our bestetfors to sustain production from this complex deep water basin. We are also evaluating, along with our partner BP, development plans to monetize the remaining resources of 4-5 TCF from this block, inthe framework of the new gas pricing palcy. Reliance has developed ‘unconventional coal-bed methane (CBM) blocks in Madhya Pradesh along with a 300 km pipeline to transport gasto customers. This development is in advanced stages of completion and production is expected to commence in the current financial yoar. (Our portfolio investments in the shale gas business is in the capital preservation mode in this environment of low commodity prices. (Our joint ventures are in the best basins and have resources of about 6 TCF. We divested our midstream interest for over $ 1 Billion in the past year and will look for further monetization opportunities. 4. Consumer Business The indian consumer sectorhas been undergoing transformational change. Based on a combination of factors ~ demographics, aspirations to have the best of products and services that are on paarwith the world, increase in discretionary spending, fast adoption of technology and India's economic growth over the lastfew years, At Reliance, we have always believed in building India-focused global scale next-generation businesses on the back of technology and the energy of our nation's youth. The consumer businessis one ofthe few opportunities fr building businesses of scale. Overthe last few years, we have been steadily investing in building alarge-scale consumer business. Today itincludes ornni-channet retail wit large physical presence and digital presence, content and distribution across, platforms and digital services initiatives. The benefits of our supply-chain infrastructure and technological solutions are shared with lakhs of small and medium businesses. 4A. Consumer Business -Media & Entertainment Letme talk about ourmedia and entertainmentbusiness, This business spans television channels and digital media properties. We are aggressively nvestingin this space to sustain and grow ourleadership —in partnership with glabal leaders such ‘aS CNBC, CNN, Viacom, Forbes and A+E. ‘Today, we own the highest number of channels-58 spanningnews, entertainment and including 11 channels that cater tolndian audiences ininterational markets, Cur channels collectively reach out to more than $00 million viewers every month —nearly two out of every five Indian. 1“Network has the mostnumber afnews channelsin India, thas 21 news channels catering to both national and regional viewers ands offered across 18 states in 11 languages. urentertainment and infotainment business, including our partnership with Viacom 18, has 26 channels. Colors is among the top 2 channels in the country, while Nick, MTV, Vit and Comedy Central are top channels, across genres. On the digital side, our combined Network18's digital sites attracts over 27 milion unique visitors every month which willbe the largest in inca. We continue to be leaders in multiple segments such as BookMyShow for tickets, MoneyControl in finance, rnews18.com and Firstpost for news and opinion. ‘And with Home Shopping and Yatra, the group has invested in some of the most successful digital properties in India We are aggressively investing in content by rolling out new channels, new formats and launching lacal production ‘shows inline with our vision of putting creativity and innovation atthe core of our programming, 4B, Organised Retail Dear Shareholders, Retailbusiness s central to our consumer facing businesses. ‘The retall business is growing across each ofthe ve businesslines: iL petroleumretaling, i value formats thatincludes Reliance Fresh, Smart and Market, il, apparethatincludes Reliance Trends, Aljo.com and several exclusive partnerships with global brands, iv. consumer electronics under the brand name of Digital and \. distribution of connectivity services for Ji. Over 1050 Fue! retail outlets are operational across India and another 200 are in advanced stages of being re- ‘commissioned, Reliance has the best fleet management program and unmatched ITidigital backbone to enable unique and delightful experience at all customer touch points, Thishas enabled us to achieve per outlet sales thats amongst highest inthe industry. ‘Once all our old assets are re-commissioned, we will continue our investments to expand this business and dominate fuel sales across the highwaysin India, Dear Shareowners, Reliance Retail continues tobe India's most admited, most proftable and argestetall company. Itenjoys leadership in mutiple formats —from grocery to apparet gia products. ‘The overallbusiness has nearly tripled the last five years. We have buit the widest geographical footprint with physical stores now covering nearly 3500 stores in 679 cities, Spread over 13 milion square feet and many more through our ecommerce reach, ‘Serving grocery and products for dally needs, Reliance Fresh and Smart continue to be the preferred convenience and supermarket destinations for over 27.5 lakh Indians every week. (ur engagements with 25 lakh small businesses through our Reliance Market cash and carry stores has extended the «gains of sourcing and modern supply chain making them more efficient and productive Inthe apparel business, we have invested significantly to bring affordable fashion to our customers, and actively work with alarge number of partners. Reliance Trends has emerged as the favorite fashion retail chain in the country Bult on the principle of democratizing fashion for aspiring Indian customers. We retallover 17 lakh garments every week making our consumers more fashionable each day,‘Aji.com the curated fashion online store launched this April has been steadily gaining loyal customers inthe fashion segment We are proud to represent over 25 prestigious international brands as our exelusive partners across the county. Today when India thinks of echnology products, it thinks Reliance Digital. Reliance Digital is the undisputed leader in the electronics retail space and has been voted India's best CDIT Retail Brand for4 consecutive years, In order to support the entry of Jio, Reliance Digital been aggressively expanding the network by a mix of own stores ‘and supporting small retailers using our supply chain, technology and logistics infrastructure We have successfully set up a large distribution network with a presence of over 500,000 retailers across the country forJio. We currently retallnearly 12 lakh handsets permonth reflecting the strength of our distribution business. Dear Shareholders, We would extend the distribution infrastructure toa larger number of kanas to cover products and services across all consumption baskets We are making strategic investments for convergence of physical retail and ecommerce to establish leadership through an omni-commerce presence. am confident hat Reliance Retail would become a major growth pillar for usin the years to come. 5. Reliance Foundat Dear Shareowners, Under Nita's able guidance, Reliance Foundation continues tobe the largest corporate Foundation in India working on diverse development challenges. Reliance Foundation has built a strong team of over 600 people who reach out to more than 10,000 vilages spread over 14 states, impacting the lives of over7 milion. We continue to work in the areas of education, healthcare, rural transformation, promoting Indian arts and culture, sports for developmentand disaster reli. Inthe last year, in the area of education, Reliance Foundation and Jio setup virtual classrooms in 96 schools in Andhra Pradesh and Gujarat, reaching out to over 20,000 students with the objective of improving the quality of teaching and learning outcomes. \We envision Reliance's education initiative to expand nationallyin this importantarea on the back of our Jionetwork. Foundation continued is efforts in the area of sports towards development of youth and to revive the sporting culturein the country The Foundation recently launched Reliance Foundation Youth Sports that aims to develop grassroots sports in India by creating organized school and college sports competitions, In addition to working on various planned initiatives, the Foundation continues to respond to unforeseen natural disasters. (Our relief operations provided solace to 85,000 people across 4 districts during the floods in Tamil Nadu, During the drought in Marathwada region in Maharashtra, our team delivered drinking water to over 50,000 families in over 100 vilages, offer my sincere appreciation tothe Foundation's team for is sprit and commitment alleviate human suffering and transform people's lives. 6. Value Creation Roadmap My dearshareowners, Reliance has a unique globally competitive, world-scale, flly integrated petrochemicals and refining business ‘operating in the fastest growing marketin the worldWe also have among the lowest cost positions anda long history of safe operations. The consumer businesses portfolio comprising of media and entertainment, retaling and digital services will have unparalled breadth, geographic coverage and technology as its main drivers. ‘As we enter our 40th year, we are proud that we have consistent performance over allthe 39 years since our IPO. We have delivered CAGR of 27.2% in net profits and our total shareholder retumns are in excess of 20% compounded. With this capital investments, both ofthe above numbers will change significantly betterin the next ew years, ‘As we complete the currant investment programme and forty years of Reliance’s history as a public company, we will have created a solid foundation for continuing growth for many years to come (Our petrochemicals and refining business is poised for a 40-50% growth in earings and cash flows with an annuity like profile, (Our consumer businesses, led by digital services will see rapid growth as we provide services to over 100 million consumers inthe shortest time, | am confident that our consumer businesses will, over several years be of the same size and earnings as our petrochemicals and refining business. These two growth platforms will reate continuing value forall stake holders. Reliance will have a large platform of sustainable annuity earnings from is petrochemicals and refining business and growth platforms from its consumer business. 7. Conclusion Inconclusion, today and this yearisa milestone for Reliance, We have consistently delivered on our promise of putting India fist. Allofourinititives and projects are designed to improve the quality of fe of every Indian, They are conceptualised to empower and enhance the spirit of every Indian. Itgives me immense pride on what Reliance has achieved fr the country andits citizens, ‘As|have consistently promised to youn the past, retums to shareholders atthe top of my mind, | wil work with your Board to share generously the returns of our investment cycle with you which | will report to you in the nextAGM. 8. Acknowledgements | will ike to thank the Central and State Governments, shareholders, investors, suppliers and customers for their consistent and resolute support | thankall my colleagues on the Board for their unanimous support and immense encouragement, {have special words to acknowledge the collective efforts ofthe sustaining a worid-class enterprise. nlre Reliance team, working tirelessly to creating and Thank you, Mutt5mbai ‘Mukesh . Ambar September 1, 2016 Chairman and Managing Director (@2" AGW since incoporaton) ofthe Company.