Indian Oil Corp. Ltd. · NSE:IOC
Indian Oil — Non-Deal Roadshow (August 2015)
24 slides from Indian Oil's roadshow presentation, August 2015
Slide 1: Investor Presentation
Investor Presentation August 2015 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF INDIAN OIL CORPORATION LIMITED (THE “COMPANY”). The material that follows is a Presentation of general background information about the Company’s activities as at the date of
Slide 3: Indian Oil Corporation: The Future of India Energy
Indian Oil Corporation: The Future of India Energy ● Maharatna Company; GoI Control: 68.57% Strong Support from the ● Government nominated Directors on IOC Board Government of India ● Contribution to exchequer of US$15.7 bn in FY15 ● 10 refineries with 65.7 MMTPA Capacity Largest Refiner in the Coun
Slide 4: Our Journey at a Glance
Our Journey at a Glance From Humble Beginnings to a leading Indian Oil Company 80.00 72.12 12.00 Turnover US$ Bn Net Worth US$ Bn 10.87 70.00 10.00 60.00 50.00 8.00 40.00 6.00 30.00 4.00 20.00 10.00 0.01 2.00 0.01 0.00 0.00 1965 1975 1985 1995 2005 2015 1965 1975 1985 1995 2005 2015 Source: Company
Slide 5: Well Poised to Leverage Strong Industry Dynamics
Well Poised to Leverage Strong Industry Dynamics However, Low per Capita Oil Consumption Represents an India is Among the World’s Fastest Growing Economies Underpenetrated Opportunity… Consumption in million barrel per day GDP 2013 2014 2015 P 2016 P 18.89 Growth India 6.9% 7.3% 7.5% 7.5% 12.77 Chin
Slide 6: IOC - The Largest Refiner in India
IOC - The Largest Refiner in India Strategic Presence With Access to High Demand Markets Leader in Refining Market Share(1) Strategically 31% 28% placed with access to high 11% 14% 9% 7% demand market of North India IOC Reliance HPCL BPCL Essar Oil ONGC Digboi Panipat Note: Figures as of March 31, 2
Slide 7: Unparalleled Network of Cross Country Pipelines
Unparalleled Network of Cross Country Pipelines Leading Pipeline Network Largest Pipeline Market Share - Downstream Length Others Capacity 31% Others (KM) Others 39% 43% Crude Oil Pipelines 4,448 40.40 MMTPA IOC IOC IOC 57% 61% Product Pipelines 6,633 40.09 MMTPA 69% Total Pipelines Gas Pipelines 14
Slide 8: Marketing: Reach in Every Part of the Country
Marketing: Reach in Every Part of the Country Pan India Presence with Multiple Consumer Touch Points Leader in Market Infrastructure IOC Others % Others 323(1) LPG Bottling SKO / LDO Distributorships Dealerships Over 42,980 7,934 3,919 Customer 54 50 52 touch-points 60 Retail Outlets Bulk Consumer 2
Slide 9: Diversified Base of Customers & Renowned Product Slate
Diversified Base of Customers & Renowned Product Slate Branded Products Diversified Products & Brands Branded Services Touchpoints Kisan Seva Kendra outlets for extending rural reach Diversified Customer Base • The turnover growth is insulated from the cyclical demand Retail Outlet at Boat house flu
Slide 10: Moving Beyond the Traditional Value Chain
Moving Beyond the Traditional Value Chain Petrochemicals Gas LAB Sourcing PX / PTA Marketing Polymers, LNG Terminals Glycols CGD Butadiene, SBR Moving Beyond the Globalization Value Exports E&P Chain Consultancy Domestic Overseas Training Operatorship Downstream Marketing ^ RE&SD Wind, Solar
Slide 11: Leading Producer of Petrochemical Products
Leading Producer of Petrochemical Products Capacity Sales Breakup (in US$ millions) Capacity Capex Total: US$3,693 Project (MT) (US$mn) Total: US$ 3,291 Total: US$ 2,818 $279 Guajarat LAB 120,000 175 $241 $303 $178 $377 Styrene $330 Butadiene 120 KTA 150 $2,349 Rubber Plant $1,418 $1,956 Panipat Px
Slide 12: Backward Integration Through E&P
Backward Integration Through E&P IOC: E&P Capabilities Status of Domestic and Overseas Blocks Stake in 17 exploration blocks Total 10 Blocks 10 Domestic blocks – With ONGC / OIL / GAIL / GSPC / Petrogas / 3 HPCL / HOEC / AWEL (20% -100% Total 7 Blocks participating interest) 1 – Including 2 Coal
Slide 13: E&P – Overseas Producing Blocks
E&P – Overseas Producing Blocks Niobrara Shale Asset, Pacific NorthWest LNG, USA Canada Acquired in 2012 Acquired in 2013 IndianOil Share: Potential Reserves: 52.77 10% (19.4 MMboe) as on Tcf 31.3.2015 2P Reserves: 19 Tcf Cumulative Production: 1P Reserves: 4.5 Tcf 398,000 boe as on 31.03.2015 Initi
Slide 14: Diversified Across Geographies and Energy Sources
Diversified Across Geographies and Energy Sources Geographical Diversification Diversification Across Sources Gas ● Revenue CAGR over 33% during last 5 • Aviation, terminal & years.US$ 1,425 mn (FY15) IndianOil Mauritius retail business ● JV ‘s for City Gas Distribution Ltd. (IOML) • 24,000 MT Stora
Slide 15: Strong Focus on Research and Development
Strong Focus on Research and Development Focus on Products & Technology Collaborations ● Technology developed to ● Hi-therm LPG based metal Indane cutting gas maximize light distillates from INDMAX NANOCUT ● Improved efficiency and safety refinery residue LPG Lubes standards Game-changing technology
Slide 16: Investing In Future Growth
Investing In Future Growth 12th 5 year Plan Investments & Targets (in US$ mm)(1) Planned Capital Expenditure Outlay(1) (2015-16) (US$ millions) $2,664 132 $64 $2,290 105 $90 72 $1,086 $291 508 $1,686 $1,500 $72 $105 $53 $62 $1,909 $1,385 $1,514 $1,509 661 208 2012-13 2013-14 2014-15 2015-16 Refining
Slide 17: Paradip Refinery Project – Salient Features
Paradip Refinery Project – Salient Features Paradip Refinery: Augmenting IOC’s Capacity 15 MMPTA Capacity: Increases IOC’s total capacity by 27.6% over current capacity One of the most modern refineries: Largest refinery on the eastern coast 100% HS including 40% Heavy Ability to process t
Slide 18: Experienced Management Team & GOI Ownership and Support
Experienced Management Team & GOI Ownership and Support Management Team Contribution to Exchequer (in US$ billions) B.Ashok Handled all aspect of marketing activities. Also Chairman headed the overseas business of IndianOil in Over 33 Year South East Asia. Experience Mechanical Engineer from Col
Slide 19: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Turnover (in US$ billions) EBITDA (in US$ billions) $73 $72 $66 $3.5 $60 Contribution to FY13 EBITDA $3.0 $2.8 Ref & $49 $2.6 Other $2.3 Mktg. s 27% 10% Pipeli nes 38% Petch em 24% FY 11 FY 12 FY 13 FY 14 FY 15 FY 11 FY 12 FY 13 FY 14 FY 15 Reduction in turnove
Slide 20: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Net Worth (in US$ billions) Cash breakdown & Debt (in US$ billions) $13.8 $10.6 $10.9 $12.9 $12.1 $9.8 $8.9 $9.3 0.1 $8.8 $8.4 0.1 0.4 0.2 3.8 1.8 3.3 3.0 1.3 2.4 2.2 2.2 1.9 1.9 3.8 3.5 3.9 4.1 4.0 FY 11 FY 12 FY 13 FY 14 FY 15 Total Debt Market Value of Inves
Slide 21: Path to Fuel deregulation
Path to Fuel deregulation Deregulation of Jun 2010 petrol prices Fuel deregulation to eradicate Allowing OMCs to hike diesel price by Rs 0.5/ltr/month Jan 2013 subsidies and improve working Bulk diesel deregulation capital situation Cap on subsidized cylinder Jan 2014 at 12/household/year Full dereg
Slide 22: Under Realization & Compensation
Under Realization & Compensation Finalization of Under Recovery Sharing on Annual Basis (in US$ billions) FY 13 FY 14 FY 15 Gross Under – realization 13.7 11.7 6.4 Upstream Discount 5.1 5.5 3.8 Cash Compensation 8.5 5.9 2.4 Net Under - realization 0.1 0.3 0.2 Reduction in Debt Level – a by-product o
Slide 23: Conclusion
Conclusion India’s Largest Oil Company …Focused on Creating Shareholder Value 1 Largest Refiner in the Country 2 Pan-India Pipeline Infrastructure 3 Leading Market Share Across the Portfolio 4 Integrated Operations Across the entire Energy Value Chain 5 Strong Focus on Innovation Through R
Slide 24: Key Risk Factors
Key Risk Factors Fluctuations in commodity prices (eg. crude oil) Fluctuation in exchange rates (INR – US$) Fluctuation in global petroleum product prices Change in operating & distillate yields and impact on gross refining margins Impact of Government subsidy and other policies Risk ass