Bankers Meet

28th April 2010

IOCL – An Important Pillar in Indian Economy

Oil Industry In India

IOCL – An Overview

IOCL’s Core Operations

Strategic Initiatives

Financial Performance

Ongoing Projects

1
IOCL – An Important Pillar in Indian Economy
‹ India’s largest commercial enterprise and flagship national oil company
and downstream petroleum major Fortune Ranking
‹ First Rank Indian corporate in Fortune Global 500 – ranked 105 in 2009

‹ Revenues of Rs 285,000 crore (approx. USD 62 Billion)

‹ Major supplier to core sector

‰ Supplier of fuel (more than 80% of requirement) to Government
organizations i.e. army, railways, state road transport, air force & navy
‰ Key sectors like fertilizer, power & aviation are largely supplied by
IOCL

‹ Credit Profile
‰ International:
‰ Baa3 Stable : by Moody’s
‰ BBB- Negative : by Fitch
‰ Domestic
‰ Long Term: AAA/Negative; Short Term P1+ : by CRISIL
‰ Long Term: AAA/Negative : by Fitch
Note: Revenue ending FY09; USD-INR: 46 (Average Rate for 2008-09)
2
Accolades

‹ #33 in Platts Top 250 Global Energy Rankings 2009

‹ #1 in BW Real 500 Rankings – Business World, November 2009

‹ #1 in “ET 500” – Economic Times listing of India's corporate giants for 2009

‹ SCOPE MoU Excellence Award in the Petroleum Sector during FY2010

‹ “Most Trusted Brand” – Reader’s Digest, Petrol Station Category in India, 2009

‹ “World Petroleum Congress Excellence Award 2008” in Madrid, Spain for R&D work in hydro-
processing technology for Green Fuels

‹ “One of the Best Employers” – Hewitt Associates survey, 2009

3
IOCL – An Important Pillar in Indian Economy

Oil Industry In India

IOCL – An Overview

IOCL’s Core Operations

Strategic Initiatives

Financial Performance

Ongoing Projects

4
 Oil Industry In India – An Overview

Oil & Natural Gas Corporation Ltd. (ONGC) 1

UPSTREAM
(Exploration & Oil India Ltd.
Production)
Reliance, Cairn Energy, HOEC, Premier Oil

Indian Oil Corporation Ltd. 2

DOWNSTREAM Hindustan Petroleum Corporation Ltd. (HPCL)

(Refining, Marketing
& Pipelines) Bharat Petroleum Corporation Ltd. (BPCL) 3

Mangalore Refinery & Petroleum Ltd. (MRPL) 4

Reliance Industries Ltd. (RIL) / Essar Oil Ltd. / Shell

GAS (Transport & GAIL (India) Ltd.

Distribution) Petronet India Ltd. (PIL)
IndianOil Corporation Ltd.
1 – includes subsidiary ONGC Videsh Ltd (OVL); 2 – includes subsidiary Chennai Petroleum Corporation Ltd. (CPCL);
3 – includes subsidiary Numaligarh Refinery Ltd.; 4 – a subsidiary of ONGC Ltd.
5
Growth of Petroleum Products

140
Consum ption (MMT) 13 3

12 9
130

12 1
120
113
112

110 10 8

100
FY04 FY05 FY06 FY07 FY08 FY09

Over the last 5 years, consumption of petroleum products grew at CAGR

of 4.36%

Source: Petroleum Planning & Analysis Cell, Ministry of Petroleum & Natural Gas, Govt. of India,

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IOCL – An Important Pillar in Indian Economy

Oil Industry In India

IOCL – An Overview

IOCL’s Core Operations

Strategic Initiatives

Financial Performance

Ongoing Projects

7
Overview of Operating Structure

…. also into Petrochemicals, E&P, Gas and Wind Power

8
 IOCL’s dominance in Downstream Oil sector
Refining – % Share Products Pipelines - %Share
Industry Capacity –
177.97 MMT Industry Capacity –
IOCL 62.34 MMT
Private
34% PIL
Refiners 8%
41%
HPCL
21%
IOCL
54%
BPCL
17%

ONGC BPCL
HPCL
5% 13%
7%

Petroleum Products Market – % Share

Industry Size –
133.40 MMT
IOCL 46 “ IOCL – a leader in
BPCL 19 Downstream Oil
industry “
HPCL 18

RIL 7

Others 10
Source: Petroleum Planning & Analysis Cell , IOCL
Key: BPCL – Bharat Petroleum Corporation Limited Group; HPCL – Hindustan Petroleum Corporation Limited; ONGC – Oil and Natural Gas
Corporation Limited; RIL – Reliance Industries Limited; PIL – Petronet India Limited
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IOCL – An Important Pillar in Indian Economy

Oil Industry In India

IOCL – An Overview

IOCL’s Core Operations

Strategic Initiatives

Financial Performance

Ongoing Projects

10
 Refining – Portfolio

‹ Controls 10 Refineries spread across

the country (60.20 MMT – 34% of
Industry)

Digboi Refining Industry Capacity 177.97 MMTPA

Panipat
IOCL’s share of Total Capacity 34%

Mathura Bongaigaon Numaligarh IOCL’s share among PSUs 57%

Barauni
Guwahati
Jamnagar
‹ Only company to have presence in
Koyali high consumption North Indian region
Haldia – Two of the Refineries are located in
high consumption North Indian region
Mumbai
Vizag consisting of Uttar Pradesh, Punjab,
Haryana, Rajasthan, Himachal
Pradesh, Uttaranchal, Jammu &
Tatipaka Kashmir

Mangalore Chennai

Cochin Narimanam Owned by IOCL

Owned by IOCL’s subsidiary, CPCL

Source: Petroleum Planning & Analysis Cell Owned by Other Companies

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Refining – Operating highlights
51.37
50.7 103.38
102
75.20 75.20
47.40 100.11
73.80

FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY09

Refinery Throughput (MMT) Capacity Utilization (%) Distillate Yield (%)

‹ Strategic inland refinery locations with most effective supply and evacuation system through pipelines

‹ Panipat, Haldia & Mathura refineries meet product specification requirements in line with environmental regulations;
remaining refineries to meet product specification requirement by June 2010

‹ Key Facts for FYE 2010

‰ Panipat (13.63 MMT), Barauni (6.19 MMT) & Guwahati (1.08 MMT) achieved highest ever thr’put

‰ Successful completion of Planned Shutdowns at Gujarat, Haldia & Mathura Refinery

‰ 744 TMT of intermediate stream sharing to utilize the spare capacity of secondary treating facilities

‰ Flare Gas Recovery System at Barauni & Gujarat registered with United Nations Framework Convention on
Climate Change (UNFCCC) : 36154 Certified Emission Reduction (CER) Credit earned

12
 Wide Network of Cross Country pipelines
‹ 10,329 Kms of crude & product pipelines
(capacity 71.61 MMT)
Length Capacity Market Share
(KM) (MMTPA) Downstream

Crude Oil 4,366 38.20 100%

Pipelines

Product 5,963 33.41 54%

Pipelines

‹ Provides low cost crude transportation to all

of the Company’s refineries

‹ Getting closer to the clients: Recently

completed product pipelines

‰ 290KM long Chennai Bangalore Product

Pipeline

‰ 265km long Koyali-Ratlam product pipeline

‰ 274km long Panipat-Jalandhar LPG

pipeline

‰ 36km long ATF pipeline connecting IOCL’s

Devanagonthi terminal to Bangaluru
International Airport

‰ 95km long pipeline connecting CPCL’s

Figures of IOC Group including Gas Manali refinery to Meenambakkam AFS
13
Pipelines – Operating highlights

59.62 63.98
57.13 95.76

22.58 Product 88.06

21.38 86.17
21.27

41.40 Crude
35.86 38.24

FY08 FY09 FY10 FY08 FY09 FY10

Pipelines Throughput (MMT) Capacity Utilization (%)

‹ Highest ever throughput achieved by IOCL’s pipelines in FYE 2010. An increase of

7.31% over previous year throughput

‹ Mathura-Delhi Pipeline became the first pipeline to transport Euro IV MS Fuel to

National Capital Region
‹ Lower capacity utilization due to commissioning of recently completed pipelines

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 Marketing – Reach

Bulk Consumer Pumps

7,593 ‹ About 35,000 touch points (55% of
industry)
Retail Outlets
18,643 ‹ Cross country retail network
comprising of 18,643 (47%) outlets
LPG Bottling
Plants 89
‹ Continued Rural thrust : 2,947
Kisan Seva Kendras

‹ LPG supply to over 56 million

About 35,000 households with 5,096 (53%) LPG
distributorship
Aviation Fuel Customer touch-
Stations 99 points ‹ Reaching the doors of bulk
customers : Bulk Consumer
Pumps 7,593 (89%)

Terminal / Depots
140
LPG Distributorships
5,096

SKO / LDO Dealerships Source: Industry Data of IOCL;

3,964 Figures in () indicate % share in industry; All figures as on FYE 2010
15
Marketing – Operating highlights
68.9

66.2 %
4. 1 4.2

% 3.6
62.6 5. 7
Export
3.3
64.7 Inland
62.6
59.3
(MMT)

FY 08 FY 09 FY 10

‹ Market Leader – dominant domestic market share (petroleum products): 46%

‰ Highest ever sales of about 69 MMT of petroleum products registering 4.1%
growth over previous year
‰ Unchallenged market leader in Retail. Continue to be market leaders in highly
competitive bulk consumer segment (2.4% increase in Market share in PSUs),
finished lubes (1.4% gain in market share), aviation fuel requirements (61.1%
market share) and branded auto fuel segment

Figures of IOCL Group including Gas All figures as on FYE 2010

16
Diversified Customer Base & Product Suite

‹ Diversified range of core sector customers

‰ Railways ‰ Aviation
‰ Power House ‰ Coal
Diversified
‰ Fertiliser Plants ‰ Transport
Customer
‰ Defence
Base
‹ The sales growth is insulated from the cyclical demand fluctuations due to diversified
customer base

‹ Branded Products
‰ Xtra Premium Petrol ‰ Indane LPG “ SERVO – India’s
Diversified ‰ Xtra Mile Diesel ‰ SERVO Lubricants No. 1 lubricant
Products brand “
& Brands ‹ Branded Services
‰ Kisan Seva Kendra ‰ Xtra Care Outlets

‹ Petrochemicals

17
R&D Providing The Cutting Edge
‹ Lube formulations – 181 developed, 147 commercialized, 65 approvals obtained from user
Industries / OEMs

‹ Deployment of in-house technologies

‰ Trials of DHDT Catalyst INDICAT-DH-IV for EURO IV quality Diesel progressing well in
CPCL since May 2009.
‰ High Metal Tolerant metal passivation Catalyst additive INDVI successfully demonstrated
at Haldia Refinery.

‹ MoU signed with (i) NREL, USA & (ii) Honeywell, USA for development & commercialization of
Green Fuel Technologies from non-food feed stocks.

‹ MoU signed with leading academic institutions like IITs, Deakin University-Australia, TERI
under Indian Oil Research fellowship scheme for Industry-Academia interface.

‹ Patents Active – 229, Commercialized (India) – 32

India USA Others Total Lubes Refinery Others Total

104 51 74 229 44 85 100 229

All figures as on FYE 2010

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IOCL – An Important Pillar in Indian Economy

Oil Industry In India

IOCL – An Overview

IOCL’s Core Operations

Strategic Initiatives

Financial Performance

Ongoing Projects

19
Spreading the Wings – E&P and Petrochemicals
Forward Integration into Petrochemicals

Petrochemical plants at Gujarat, Panipat and Bongaigaon

‹ Petrochem Turnover: Rs 2760 crore (FYE 2009)
‹ LAB sales 126 TMT (No.1 in Domestic Market : about 34% share)
‰ Export 19 TMT to 13 countries
‰ Footprint in Malaysia, South Africa, Saudi Arabia and Peru
‹ PTA sales: 535 TMT (No.2 in Domestic Market : about 27% share)
‹ Naphtha Cracker Unit at Panipat - commissioned
‹ SBR Project at Panipat - planned
Backward Integration into E&P
Domestic Exploration Blocks
‹ NELP – 8 blocks with ONGC / OIL / GAIL / GSPC / Petrogas / HPCL (15-100% participating
interest)
‹ Coal Bed Methane – 2 blocks with ONGC (20% participating interest)
‹ Farm-in – 1 block
International Exploration Blocks
‹ Total 10 blocks – Bidding (8) and Farm-In (2)
Key: LAB: Linear Alkyl Benzene; PTA: Purified Terephthalic Acid; SBR: Styrene Butadiene Rubber; NELP: New Exploration Licensing Policy
Physical Sales figures for FYE 2010
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Diversification in Other Energy Sources

Gas – LNG / CNG Wind Power, Biofuels & Solar Energy

‹ Gas Turnover: Rs 2425 crore in FYE 2009 Wind Power

‹ Gas sales of 1.89 MMT in FYE 2010 as ‹ Commissioned 21MW plant at Kachchh,
against 1.7 MMT in FYE 2009, Gujarat in Jan 09

‹ Franchise Agreements with City Gas Biodiesel

Distributors (CGD) to sell CNG through IOCLs ‹ Joint Venture with Chhattisgarh
Retail Outlets Renewable Energy Development Agency
‹ MoUs with several companies for sourcing of for plantation of Jatropha
gas for marketing in various states ‹ Jatropha Plantation initiated in Jhabua
Distt of MP; Agreement with Ruhi Soya for
Jatropha Plantation in UP
Nuclear Power Solar Energy

‹ On 4th November 2009, IOCL entered into an ‹ 2 pilot solar charging stations

MOU with Nuclear Power Corporation of India commissioned in Uttar Pradesh in August

to establish a 1500-2000 MW nuclear power & September 2008

plant ‹ First commercial solar charging station

commissioned in Orissa in December
2009
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Strides Beyond Borders

‹ Sri Lanka
‰ Lanka IOC Ltd. started retailing operations in February 2003
‰ Largest private sector company in Sri Lanka, with healthy growth in sales: Diesel sales
up 18.7%, Lube Sales up 18%
‰ Share in bunkering business: 41%
‰ Overall Market Share: 20%

‹ Mauritius
‰ Indian Oil Mauritius Ltd. incorporated in October 2001
‰ Overall sales grew by 10% to 237 thousand KL vis-à-vis 217 thousand KL last year
‰ Market leader in aviation business with market share of about 42%
‰ Overall Market Share : 24.4%
‰ Maiden dividend issued

‹ Dubai
‰ Wholly-owned subsidiary IOC Middle East FZE, incorporated in April 2006, actively
pursuing lubricant business in Middle East and Africa
‰ Servo distributors appointed for Oman, Qatar and Bahrain

All figures as on FYE 2010

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IOCL – An Important Pillar in Indian Economy

Oil Industry In India

IOCL – An Overview

IOCL’s Core Operations

Strategic Initiatives

Financial Performance

Ongoing Projects

23
Strong Results Against Odds
Turnover (Rs Thousand Crore) Net Profit (Rs Thousand Crore)

CAGR 15.91% ( FY 06 to FY 09)

300.0 285 7.5 7.50 6.96
247
221
225.0 199 4.92 4.66
183
4.5
150.0 2.95

75.0 1.5
FY06 FY07 FY08 FY09 FY10 (Dec09) FY06 FY07 FY08 FY09 FY10 (Dec09)

EBITDA (Rs Thousand Crore ) Net Worth (Rs Thousand Crore)

15.0 14.62 14.33 50.0 49

44
11.32 41
12.0 9.93 9.70 40.0 35
9.0 29
30.0
6.0 20.0
3.0
10.0
FY06 FY07 FY08 FY09 FY10 (Dec09) FY06 FY07 FY08 FY09 FY10 (Dec09)

Turnover grew at 15.91% CAGR over last 4 years - growth rate higher than that of
Indian Economy

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Strong Financials with Conservative Capital Structure

Debt/Equity

1.02
0.9 0.86
0.78
0.91

FY06 FY07 FY08 FY09 FY10 (Dec09)

Debt/EBITDA

3.97
2.66 2.48 3.43
1.85

FY06 FY07 FY08 FY09 FY10 (Dec09)

Conservative gearing – Debt to Equity of 0.91:1, Debt to EBITDA of 3.43:1

25
Investments vis-à-vis Debt

50 Rs Thousand Crore 45.0

42.3 42.8 44.4
45

40
36.2 35.5

35 31.5

30 27.1
25

20

15

10

0
FY07 FY08 FY09 FY10(Dec09)
Investments * Debt

‹ Substantial Investments vis-à-vis debt

‹ Net of Investments : Virtually a Debt Free Company

* Investments include Market Value of shares held in ONGC Ltd., GAIL (India) Ltd., OIL India Ltd., shares held in
Trust from merger of IBP Co. Ltd. and Bongaigaon Refinery & Petrochemicals Ltd and Special Oil Bonds
26
 Compensation of Under Realization

Rs Thousand Crore

Oil Bonds / Budgetary Support # 60.1

Discount from Refiners
Discount from Upstream Companies
Subsidy from the GOI 44.6
Net Under Realization TOTAL GOVT.
40.4 OF INDIA
19.0 SUPPORT
30.1

13.9
17.9
14.3
0.6 4.5
1.5 18.2 4.3
11.9 1.2
9.8 7.9
1.5
2.2 1.5

FY07 FY08 FY09 FY10 (Dec09)

Under Realization: Difference between Normal Market Price and Controlled Price of 4 sensitive products, i.e. Motor Spirit, Superior Kerosene Oil
(Public Distribution System) , High Speed Diesel and Liquefied Petroleum Gas (Domestic)

# Oil Bonds till FY09; Budgetary Support during April 09 to Dec 09

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IOCL – An Important Pillar in Indian Economy

Oil Industry In India

IOCL – An Overview

IOCL’s Core Operations

Strategic Initiatives

Financial Performance

Ongoing Projects

28
Major Ongoing Projects & Outlay
Major Ongoing Planned Projects
Project Estimated Cost Anticipated Capex Outlay: 2010-11
(Rs Cr) Completion

Residue up gradation & MS/HSD 6989 Jun-10

Quality improvement at Gujarat

MS quality up gradation at Barauni 1492 Jun-10 Refining *, 8680

MS quality up gradation at 325 Jun-10

Guwahati

MS quality up gradation at Digboi 300 Jun-10 Petchem, 2189

DHDT at Bongaigaon 1675 Jun-10

Marketing, 307
MS Quality up gradation at 294 Jun-10
Bongaigaon
Other **, 682 Pipelines, 967
Panipat Refinery expansion: from 1060 Aug-10
12 to 15 MMTPA

Branch PL from KSPL, Viramgram 349 Dec-11

to Kandla

Paradip New Sambalpur Raipur 1793 Sep-12

Ranchi PL TOTAL CAPEX Outlay :
Rs 12,825 Crore
Grassroots Refinery at Paradip 29777 Nov-12

* Includes refineries’ capacity additions, yield & quality improvement

** Includes R&D and diversifications such as Natural Gas and E&P etc.
29
Thank You