Bankers Meet

28th April 2010

IOCL An Important Pillar in Indian Economy

Oil Industry In India IOCL An Overview

IOCLs Core Operations Strategic Initiatives Financial Performance Ongoing Projects

IOCL An Important Pillar in Indian Economy

Indias largest commercial enterprise and flagship national oil company and downstream petroleum major 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 Moodys 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)

Fortune Ranking

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 Readers Digest, Petrol Station Category in India, 2009 World Petroleum Congress Excellence Award 2008 in Madrid, Spain for R&D work in hydroprocessing technology for Green Fuels One of the Best Employers Hewitt Associates survey, 2009

IOCL An Important Pillar in Indian Economy Oil Industry In India IOCL An Overview

IOCLs Core Operations Strategic Initiatives Financial Performance Ongoing Projects

Oil Industry In India An Overview

UPSTREAM (Exploration & Production) Oil & Natural Gas Corporation Ltd. (ONGC) 1 Oil India Ltd. Reliance, Cairn Energy, HOEC, Premier Oil

Indian Oil Corporation Ltd. 2 DOWNSTREAM (Refining, Marketing & Pipelines) Hindustan Petroleum Corporation Ltd. (HPCL) Bharat Petroleum Corporation Ltd. (BPCL) 3 Mangalore Refinery & Petroleum Ltd. (MRPL) 4 Reliance Industries Ltd. (RIL) / Essar Oil Ltd. / Shell GAS (Transport & Distribution) GAIL (India) Ltd. 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.

Growth of Petroleum Products

140 Consum ption (MMT) 130

12 1 12 9 13 3

120
112 113

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,

IOCL An Important Pillar in Indian Economy Oil Industry In India

IOCL An Overview IOCLs Core Operations Strategic Initiatives Financial Performance Ongoing Projects

Overview of Operating Structure

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

IOCLs dominance in Downstream Oil sector

Refining % Share
Industry Capacity 177.97 MMT

Products Pipelines - %Share

IOCL 34%
Industry Capacity 62.34 MMT
PIL 8% HPCL 21%

Private Refiners 41%

IOCL 54%
BPCL 17%

ONGC 5%

HPCL 7%

BPCL 13%

Petroleum Products Market % Share

Industry Size 133.40 MMT

IOCL BPCL HPCL RIL Others 7 19 18

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IOCL a leader in Downstream Oil industry

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

IOCL An Important Pillar in Indian Economy Oil Industry In India

IOCL An Overview IOCLs Core Operations Strategic Initiatives Financial Performance Ongoing Projects

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Refining Portfolio
Controls 10 Refineries spread across the country (60.20 MMT 34% of Industry)
Panipat Mathura Barauni Guwahati Jamnagar Koyali Haldia Vizag Bongaigaon Digboi Refining Industry Capacity IOCLs share of Total Capacity Numaligarh IOCLs share among PSUs 177.97 MMTPA 34% 57%

Mumbai

Tatipaka Mangalore Cochin Chennai Narimanam Owned by IOCL

Only company to have presence in high consumption North Indian region Two of the Refineries are located in high consumption North Indian region consisting of Uttar Pradesh, Punjab, Haryana, Rajasthan, Himachal Pradesh, Uttaranchal, Jammu & Kashmir

Owned by IOCLs subsidiary, CPCL

Source: Petroleum Planning & Analysis Cell

Owned by Other Companies 11

Refining Operating highlights

51.37

50.7

103.38

102
47.40
100.11
73.80

75.20

75.20

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 thrput 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

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Wide Network of Cross Country pipelines

10,329 Kms of crude & product pipelines (capacity 71.61 MMT)
Length (KM) Crude Oil Pipelines Product Pipelines 4,366 Capacity (MMTPA) 38.20 Market Share Downstream 100%

5,963

33.41

54%

Provides low cost crude transportation to all of the Companys refineries Getting closer to the clients: completed product pipelines Recently

290KM long Chennai Bangalore Product Pipeline 265km long Koyali-Ratlam product pipeline 274km long pipeline Panipat-Jalandhar LPG

36km long ATF pipeline connecting IOCLs Devanagonthi terminal to Bangaluru International Airport 95km long pipeline connecting CPCLs Manali refinery to Meenambakkam AFS
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Figures of IOC Group including Gas

Pipelines Operating highlights

57.13 59.62 63.98
95.76

22.58 21.27 21.38

Product

88.06

86.17

35.86

38.24

41.40

Crude

FY08

FY09

FY10

FY08

FY09

FY10

Pipelines Throughput (MMT)

Capacity Utilization (%)

Highest ever throughput achieved by IOCLs 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 Retail Outlets 18,643

About 35,000 touch points (55% of industry) 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 households with 5,096 (53%) LPG distributorship Reaching the doors of bulk customers : Bulk Consumer Pumps 7,593 (89%)

About 35,000
Aviation Fuel Stations 99

Customer touchpoints

Terminal / Depots 140

LPG Distributorships 5,096 SKO / LDO Dealerships 3,964

Source: Industry Data of IOCL; Figures in () indicate % share in industry; All figures as on FYE 2010

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Marketing Operating highlights

68.9 66.2
%
3.6 Export 3.3 64.7 62.6 59.3 Inland

4. 1

%
4.2

62.6

5. 7

(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

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Diversified Customer Base & Product Suite

Diversified Customer Base

Diversified range of core sector customers Railways Aviation Power House Coal Fertiliser Plants Transport Defence The sales growth is insulated from the cyclical demand fluctuations due to diversified customer base

Branded Products Diversified Products & Brands Xtra Premium Petrol Xtra Mile Diesel Branded Services Kisan Seva Kendra Petrochemicals Xtra Care Outlets Indane LPG SERVO Lubricants

SERVO Indias No. 1 lubricant brand

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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 104 USA 51 Others 74 Total 229 Lubes 44 Refinery 85 Others 100 Total 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 IOCLs 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 Gas Turnover: Rs 2425 crore in FYE 2009 Gas sales of 1.89 MMT in FYE 2010 as against 1.7 MMT in FYE 2009, Franchise Agreements with City Gas Wind Power, Biofuels & Solar Energy Wind Power Commissioned 21MW plant at Kachchh, Gujarat in Jan 09 Biodiesel Joint Venture with Chhattisgarh

Distributors (CGD) to sell CNG through IOCLs Retail Outlets MoUs with several companies for sourcing of gas for marketing in various states

Renewable Energy Development Agency for plantation of Jatropha Jatropha Plantation initiated in Jhabua Distt of MP; Agreement with Ruhi Soya for Jatropha Plantation in UP

Nuclear Power On 4th November 2009, IOCL entered into an MOU with Nuclear Power Corporation of India to establish a 1500-2000 MW nuclear power plant

Solar Energy 2 pilot solar charging stations

commissioned in Uttar Pradesh in August & September 2008 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--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 IOCLs Core Operations Strategic Initiatives Financial Performance Ongoing Projects

23

Strong Results Against Odds

Turnover (Rs Thousand Crore)
CAGR 15.91% ( FY 06 to FY 09)
300.0 225.0 150.0 75.0 FY06 FY07 FY08 FY09 FY10 (Dec09)

Net Profit (Rs Thousand Crore)

285 221 183 247 199

7.5

7.50 4.92

6.96 4.66 2.95

4.5

1.5 FY06 FY07 FY08 FY09 FY10 (Dec09)

EBITDA (Rs Thousand Crore )

15.0 12.0 9.0 6.0 3.0 FY06 FY07 FY08 FY09 FY10 (Dec09)

Net Worth (Rs Thousand Crore)

50.0

14.62 9.93

14.33 11.32 9.70

41
40.0 30.0 20.0 10.0 FY06 FY07 FY08

44

49

35 29

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 0.78 0.86 0.91

FY08 FY09 FY10 (Dec09)

FY06

FY07

Debt/EBITDA

3.97 2.66 1.85 2.48

3.43

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--vis Debt

50 45 40 35 30 25 20 15 10 5 0 FY07 FY08 FY09 FY10(Dec09)
Rs Thousand Crore

42.3 36.2 35.5 31.5 27.1

45.0

42.8 44.4

Investments *

Debt

Substantial Investments vis--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
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Compensation of Under Realization

Rs Thousand Crore
Oil Bonds / Budgetary Support # Discount from Refiners Discount from Upstream Companies Subsidy from the GOI Net Under Realization 40.4 19.0

60.1

44.6 TOTAL GOVT. OF INDIA SUPPORT

30.1
13.9
0.6

17.9
14.3
1.5 9.8 1.5

4.5 18.2 4.3

1.2 7.9

11.9
1.5 2.2

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 IOCLs Core Operations Strategic Initiatives Financial Performance Ongoing Projects

28

Major Ongoing Projects & Outlay

Major Ongoing Planned Projects
Project Residue up gradation & MS/HSD Quality improvement at Gujarat MS quality up gradation at Barauni MS quality up gradation at Guwahati MS quality up gradation at Digboi DHDT at Bongaigaon MS Quality up gradation at Bongaigaon Panipat Refinery expansion: from 12 to 15 MMTPA Branch PL from KSPL, Viramgram to Kandla Paradip New Sambalpur Raipur Ranchi PL Grassroots Refinery at Paradip Estimated Cost (Rs Cr) 6989 1492 325 Anticipated Completion Jun-10 Jun-10 Jun-10

Capex Outlay: 2010-11

Refining *, 8680

300 1675 294 1060 349 1793 29777

Jun-10 Jun-10

Petchem, 2189

Marketing, 307

Jun-10 Aug-10 Dec-11 Sep-12

TOTAL CAPEX Outlay : Rs 12,825 Crore
Other **, 682 Pipelines, 967

Nov-12
* Includes refineries capacity additions, yield & quality improvement ** Includes R&D and diversifications such as Natural Gas and E&P etc.

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Thank You