Indian Oil Corp. Ltd. · NSE:IOC

Indian Oil — ASEAN & Indian Investors/Analysts Conference 2016

27 slides from Indian Oil's conference presentation, Jun 29, 2016

  1. Slide 1: ASEAN & Indian Investors/Analysts Conference 2016

    ASEAN & INDIAN Investors/Analysts Conference 2016 Strictly Private and Confidential

  2. Slide 2: Indian Oil Corporation: The Future of India Energy

    Indian Oil Corporation: The Future of India Energy ● Maharatna Company; GoI Control: 58.57% Strong Support from the ● Government nominated Directors on IOC Board Government of India ● Contribution to exchequer of US$20 bn (INR 132064 crore ) in FY16 ● 11 refineries with 80.7 MMTPA Capacity Largest R

  3. Slide 3: Our Journey at a Glance

    Our Journey at a Glance From a humble beginning to an Oil Giant 12.00 80.00 11.16 10.00 70.00 60.00 Turnover 60.31 8.00 Net Worth 50.00 (US$ Bn) (US$ Bn) 6.00 40.00 4.00 30.00 20.00 2.00 0.01 0.01 10.00 0.00 0.00 1965 1975 1985 1995 2005 2016 1965 1975 1985 1995 2005 2016 Net Worth Turnover Source:

  4. Slide 4: Well Poised to Leverage Strong Industry Dynamics

    Well Poised to Leverage Strong Industry Dynamics 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 2014 2015 2016 2017 P Growth 19.03 India 7.2% 7.3% 7.5% 7.5% 12.53 China 7.3% 6.9%

  5. Slide 5: 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 35% placed with 26% 10% 13% 9% access to high 7% demand market of North India IOC Reliance HPCL BPCL Essar Oil ONGC Digboi Panipat Note: Figures as of March 31, 2

  6. Slide 6: Paradip Refinery – Modern Marvel

    Paradip Refinery – Modern Marvel Further Downstream Projects in Odisha 700 KTA PP Plant: Petchem Initiation at Paradip Anchor tenant of Paradip PCPIR Turning Odisha into Energy Gateway of East India 15 MMTPA Capacity India’s Largest PSU Refinery Rs. 34,555 crore Investment Dedicated to the Nation by

  7. Slide 7: 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 28%  One of the most modern refineries:  Largest refinery on the eastern coast  100% HS including 40% Heavy  Ability to process toughest crude  Nelson C

  8. Slide 8: Unparalleled Network of Cross Country Pipelines

    Unparalleled Network of Cross Country Pipelines Largest Pipeline Market Share - Downstream Complete Capacity Utilization % 95 94 99 Others Others 73 IOC, 74 70 29% IOC Others, 45% IOC 47% 71% 53% 55% 114 118 125 FY 14 FY 15 FY 16 Product Pipelines Total Pipelines Crude Product Crude Oil Pipelines So

  9. Slide 9: Extensive Network of Cross Country Pipelines

    Extensive Network of Cross Country Pipelines Length Capacity (KM) Crude Oil 4,867 40.40 Pipelines MMTPA Product Pipelines 6,739 40.19 MMTPA Jalandhar Gas Pipelines 140 9.5 Bhatinda Ambala MMSCMD(1) Sangrur Total 11,746 -- Roorkee Najibabad Panipat Meerut Rewari Delhi Dadri Tinsukia Sanganer Mathura

  10. Slide 10: 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 Others 320(1) 14% 40% 36% LPG Bottling SKO / LDO Distributorships 54% Dealerships Over 45,212 9,144 3,908 Customer touch-points 86% 60% 64% 46% Retail Outlets Bulk Con

  11. Slide 11: Unparalleled Sales Maintaining Leadership with 45.9% Market Share

    Unparalleled Sales Overall IndianOil Sales Domestic POL Sales (MMT) 80.7 MMT 76.5 75.5 72.7 67.1 68.5 9.2 LPG 7.6 8.4 Naphtha 9.5 7.5 8.4 MS ATF 4.6 4.8 4.7 SKO HSD FO/LSHS 33.9 34.5 35.8 Bitumen Lubes Others 2.7 2.7 3.1 2013-14 2014-15 2015-16 Highest-ever Sales Maintaining Leadership with 45.9% Ma

  12. Slide 12: Diversified Base of Customers & Renowned Product Slate

    Diversified Base of Customers & Renowned Product Slate Branded Products Diversified Products & Brands Branded Services 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 fluctuations du

  13. Slide 13: 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

  14. Slide 14: Leading Producer of Petrochemical Products

    Leading Producer of Petrochemical Products Capacity Sales Breakup (in US$ millions) Capacity Capex Project (MT) (US$mn) Total: US$ 3483 Total: US$ 3105 $263 Total: US$2,924 Guajarat LAB 120,000 175 $227 $286 $356 $214 Styrene $296 Butadiene 120 KTA 150 Rubber Plant $2,216 $1,845 $1,867 Panipat Px /

  15. Slide 15: Backward Integration Through E&P

    Backward Integration Through E&P IOC: E&P Capabilities Status of Domestic and Overseas Blocks Total 13 Blocks  Stake in 23 exploration blocks 3 Total 10 Blocks  13 Domestic blocks – With ONGC / OIL / GAIL / GSPC / Petrogas / 3 3 HPCL / HOEC / AWEL (20% -100% 1 participating interest) 3 1 – Includi

  16. Slide 16: E&P – Overseas Producing Blocks

    E&P – Overseas Producing Blocks Niobrara Shale Asset, USA Acquired in 2012 Approved Investment : US$132.72 Mn Pacific NorthWest LNG, Canada Acquired in 2013 Cumulative Indian Oil Investment US Approved Investment : US$ 3003 Mn $79.88 Mn Cumulative Investment: 2P Reserves: 34 MMboe US$ 1.365 billion

  17. Slide 17: Diversified Across Geographies and Energy Sources

    Diversified Across Geographies and Energy Sources Geographical Diversification Diversification Across Sources Gas ● JV for City Gas Distribution with presence • Aviation, terminal & in 9 GAs IndianOil Mauritius retail business ● 5 MMTPA LNG import, storage and re- Ltd. (IOML) • 24,000 MT Storage gas

  18. Slide 18: 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 standards Game-changing technology for ●

  19. Slide 19: INDMAX – A New Era

    INDMAX – A New Era INDMAX: INDane MAXimization IndianOil R&D’s “Make In India” Initiative Indigenously developed technology to bridge India’s LPG Deficit Over 2 times LPG yield over regular FCC Flexibility to cater to Seasonal Demand: LPG/ MS/ HSD Mode High Octane MS (97-98 RON) production INDMAX un

  20. Slide 20: Investing In Future Growth

    Investing In Future Growth Major Ongoing Projects Planned Capital Expenditure Outlay(1) (2016-17) Estimated (US$ millions) Cost Anticipated Project (US$ mn) Completion 145 Ennore LNG Terminal 774 2018-19 377 Paradip Raipur Ranchi Pipeline 271 2017-18 302 Paradip–Haldia–Durgapur LPG 275 2019-20 Pipel

  21. Slide 21: 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

  22. Slide 22: Our Differentiators: Strong Financials

    Our Differentiators: Strong Financials Turnover (in US$ billions) EBITDA (%) Others $69 $68 -1% $63 $60 Petchem 27% $56 Ref & Mktg. 47% Pipelines 26% FY 12 FY 13 FY 14 FY 15 FY 16 Reduction in turnover during FY16 is due to reduction in product prices Contribution to FY16 EBITDA Net Profit (in US$ b

  23. Slide 23: Our Differentiators: Strong Financials

    Our Differentiators: Strong Financials Net Worth (in US$ billions) Cash breakdown & Debt (in US$ billions) $11.2 $10.0 $10.3 $9.2 $8.7 0.1 0.0 0.4 FY 12 FY 13 FY 14 FY 15 FY 16 3.6 3.1 2.8 0.0 $13.0 1.5 $12.2 0.1 $11.4 1.6 2.1 1.8 1.8 2.1 $8.3 Debt / Equity $7.9 1.7 1.3x 1.3x 1.3x 3.7 3.9 3.7 3.3 2.

  24. Slide 24: 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

  25. Slide 25: Under Realization & Compensation

    Under Realization & Compensation Finalization of Under Recovery Sharing on Annual Basis (in US$ billion) FY 14 FY 15 FY 16 Gross Under – realization 11.0 6.0 1.1 Upstream Discount 5.2 3.6 0.1 Cash Compensation 5.6 2.3 1.0 Net Under - realization 0.2 0.1 0.0 Reduction in Debt Level – a by-product of

  26. Slide 26: 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

  27. Slide 27: Key Risk Factors

    Key Risk Factors  Fluctuations in commodity prices (e.g. crude oil)  Fluctuation in exchange rates (INR – US$)  Fluctuations in global petroleum product prices  Change in operating & distillate yields and impact on gross refining margins  Impact of Government subsidy and other policies  Risk a

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