Indian Oil Corp. Ltd. · NSE:IOC
Indian Oil — JP Morgan Indian Investor Summit 2017
26 slides from Indian Oil's conference presentation, September 2017
Slide 1: JP Morgan Indian Investor Summit 2017
JP Morgan Indian Investor Summit 2017 September 2017 Strictly Private and Confidential
Slide 2: Indian Oil Corporation: The Future of India Energy
Indian Oil Corporation: The Future of India Energy ● Maharatna Company; GoI Control: 57.34% Strong Support from the ● Government nominated Directors on IOC Board Government of India ● Contribution to exchequer of INR 1790 bn in FY17 ● 11 refineries with 81.20 MMTPA Capacity Largest Refiner in the Co
Slide 3: Our Journey at a Glance
Our Journey at a Glance From a humble beginning to an Oil Giant FY17 31-Mar-17 31-Mar-17 120000 30000 Turnover 26212 Net Worth 99729 Retail 100000 25000 500000 (INR/Cr) 445373 (INR/Cr) Outlets 400000 80000 20000 300000 60000 15000 200000 40000 10000 77.82 4482 100000 20000 5000 0 0 0 1965 1975 1985
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 2015 2016 2017 P 2018 P Growth 19.53 India 7.3% 7.5% 7.5% 7.6% 12.53 11.12 China 6
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) 35% Strategically 26% placed with 11% 14% 9% 6% access to high demand market of North India IOC Reliance HPCL BPCL Essar Oil ONGC Digboi Panipat Note: Figures as of March 31, 2
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 6
Slide 7: Paradip Refinery– Salient Features
Paradip Refinery– Salient Features Paradip Refinery: Augmenting IOC’s Capacity INDMAX Unit Capacity : 15 MMPTA Operating at 100% capacity from May’17 onwards One of the most modern refineries: 100% HS including 40% Heavy Nelson Complexity Factor – 12.2 Processed 99.99% Sour Crude in Q1 1
Slide 8: Unparalleled Network of Cross Country Pipelines
Unparalleled Network of Cross Country Pipelines Largest Pipeline Market Share - Downstream High Capacity Utilization % Others, 51% 94 99 94 Others, Others, 70 73 69 27% IOC, 44% IOC, 49% IOC, 73% 56% 118 125 119 Total Pipelines FY 15 FY 16 FY 17 Crude Oil Pipelines Product Pipelines Crude Product So
Slide 9: Extensive Network of Cross Country Pipelines
Extensive Network of Cross Country Pipelines Length Capacity (KM) Crude Oil 5,301 48.60 Pipelines MMTPA Product Pipelines 7,491 45.09 MMTPA Jalandhar Gas Pipelines 140 9.5 Bhatinda Ambala MMSCMD(1) Sangrur Total 12,932 -- Roorkee Najibabad Panipat Meerut Rewari Delhi Dadri Tinsukia Sanganer Mathura
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 326(1) LPG Distributor 49% 51% SKO / LDO 56% 9,570 Dealerships 3,904 Over 46,500 Customer touch-points 51% 49% Retail Outlets 44% Bulk Consumer 26,212 Pumps 6,5
Slide 11: Unparallel Sales Maintaining Leadership with 45.1% Market Share
Unparallel Sales Domestic POL Sales (MMT) Overall IndianOil Sales 83.5 MMT 80.7 76.5 9.2 10.1 LPG 8.4 Naphtha 9.5 10.1 8.4 MS 4.6 3.6 ATF 4.7 SKO HSD 35.4 FO/LSHS 34.5 35.8 Bitumen Lubes Others 2.7 3.1 3.3 2014-15 2015-16 2016-17 Highest-ever Sales 11 Maintaining Leadership with 45.1% Market Share
Slide 12: Diversified Customer Base & Renowned Brands
Diversified Customer Base & Renowned Brands 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 due to divers
Slide 13: Moving Beyond the Traditional Value Chain
Moving Beyond the Traditional Value Chain Petrochemicals Gas LAB Sourcing PX / PTA Marketing Polymers, Glycols LNG Terminals Butadiene, SBR CGD Moving Beyond the Globalization Value Exports E&P Chain Consultancy Domestic Overseas Training Operatorship Downstream Marketing ^ RE&SD Wind, Solar
Slide 14: One of the Leading Producer of Petrochemical Products
One of the Leading Producer of Petrochemical Products Capacity Sales Breakup (in INR/Cr) Capacity Capex Total: 23080 Project Total: 19297 (MT) (US$mn) Total: 20273 1741 Guajarat LAB 120,000 175 1894 1730 1416 1960 2035 Styrene Butadiene 120 KTA 150 14685 Rubber Plant 12315 12210 Panipat Px / PTA 553
Slide 15: Backward Integration Through E&P
Backward Integration Through E&P IOC: E&P Capabilities Status of Domestic and Overseas Blocks Total 8 Blocks Total 9 Blocks Stake in 17 exploration blocks 8 Domestic blocks – With ONGC / OIL / GAIL / GSPC – Including 2 Coal Bed Methane blocks with U. Development, 3 Production, 5 ONGC (20% partic
Slide 16: Russian Asset Acquisition
Russian Asset Acquisition Vankor: Today’s Behemoth Reserves 331 MMT Production 21 MMTPA Consortium Stake 23.9% IndianOil Stake 8% Taas: Tomorrow’s Star Reserves 196 MMT Production 1 MMTPA Peak Envisaged 5 MMTPA Consortium Stake 29.9% IndianOil Stake 10% Vankor Investment Approval for Taas US$ 598 mi
Slide 17: Diversified Across Geographies and Energy Sources
Diversified Across Geographies and Energy Sources Geographical Diversification Diversification Across Sources ● JV for City Gas Distribution with Gas presence in 9 Cities • Aviation, terminal & IndianOil retail business Mauritius ● 5 MMTPA LNG import, storage and re- Ltd. (IOML) • 24,000 MT Storage
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 ●
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 19 INDMAX
Slide 20: R&D Prowess
R&D Prowess • Technology Commercialisation 35 TMTPA INDAdeptG Plant Indigenous In-Line Pipeline Indigenously Developed at Guwahati Refinery Inspection Tool Delayed Coker at Barauni • 2nd R&D Campus – Upscaling Thrust Areas CO2 Refining Research Technology Pipeline Catalysts IndianOil R&D Research of
Slide 21: Investing In Future Growth
Investing In Future Growth Major Ongoing Projects Planned Capital Expenditure Outlay(1) (2017-18) (INR/Cr.) Estimated Cost Project (INR/Cr) Others, 3500 Polypropylene unit at Paradip 3,150 Refining, 4559 Coker at Haldia 3,076 BS-VI Projects 15,411 INDMAX unit at Bongaigaon 2,582 E&P, 3016 Paradip-Hy
Slide 22: Experienced Management Team & GOI Ownership and Support
Experienced Management Team & GOI Ownership and Support Management Team Contribution to Exchequer (in INR/Cr) Sanjiv Singh Handled all aspects of Refining activities. Chairman Previously headed the Refinery Division. Also worked with centre for High technology and with 179014 35+ Year Experience N
Slide 23: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Turnover (in INR/Cr) EBITDA (%) Others 4,57,571 7% 4,50,756 4,45,373 Refining Petchem 37% 4,14,919 21% 4,06,828 Pipelines FY 13 FY 14 FY 15 FY 16 FY 17 17% Marketing 18% Contribution to FY17 EBITDA Net Profit (in INR/Cr) and Dividends (%) EBITDA (in INR/Cr) 30%
Slide 24: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Net Worth (in INR/Cr) Cash breakdown & Debt (in INR/Trillion) 99,729 88,134 67,970 0.01 65,992 0.1 61,124 0.24 0.19 0.00 0.86 0.10 0.00 0.81 0.01 0.08 0.10 0.14 0.12 0.12 0.09 0.55 0.53 0.55 0.12 0.24 0.26 0.25 0.25 0.18 FY 13 FY 14 FY 15 FY 16 FY17 FY 13 FY 14
Slide 25: 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 26: 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 26