Investors Meet 22 June 2012

Presentation to Investors

June 22nd 2012

This presentation and the accompanying slides( the Presentation),which have been prepared byGulf Oil Corporation Limited.(the Company), have been prepared solely for in formation purposes and donot constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shallnot form the basis or be relied on in connection with any contract or binding commitment whatsoever. Nooffering of securities of the Company will be made except by means of a statutory offering documentcontaining detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Companyconsiders reliable, but the Company makes no representation or warranty, express orimplied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness andreasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may notcontain all of the information that you may consider material. Any liability in respect of the contents of, or anyomission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Companys market

Disclaimer

Certain matters discussed in this Presentation may contain statements regarding the Companys marketopportunity and business prospects that are individually and collectively forward-looking statements. Suchforward-looking statements are not guarantees of future performance and are subject to known and unknownrisks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but arenot limited to, the performance of the Indian economy and of the economies of various internationalmarkets, the performance of the industry in India and world-wide, competition, the companys ability tosuccessfully implement its strategy, the Companys future levels of growth and expansion, technologicalimplementation, changes and advancements, changes in revenue, income or cash flows, the Companysmarket preferences and its exposure to market risks, as well as other risks. The Companys actualresults, levels of activity, performance or achievements could differ materially and adversely from resultsexpressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made bythird parties included in this Presentation are not adopted by the Company and the Company is notresponsible for such third party statements and projections.

The Hinduja Group - Introduction One of Indias premier transnational

conglomerates headquartered in London Been in existence for over 90 years Present in 10 business sectors

3

Present in 10 business sectors Present in 35 countries Employs over 50,000 personnel Many Listed Companies in the Group Turnover of the Group is several billion

dollars www.hindujagroup.com

Hinduja Group - Worldwide

Global InvestmentBanking &

Financial ServicesInternational

TradingPhilanthropic

Activities

AutomotiveOil & GasPowerIT / ITESMediaReal EstateHealthcareProject Development

Wealth ManagementTrade FinanceCorporate Advisory ServicesConsumer BankingCorporate & Commercial BankingConsumer FinanceTransaction BankingInvestment Banking

Product Sourcing and MarketingArrange and Advise on:

Buy BacksCounter TradeDebt clearingTrade Finance

HealthcareEducationSocial WelfareArts and cultureSports

Investment BankingAsset Leasing

Hinduja Group Investments in India

Gulf oil is arguably one of the most famous brands in the oil and lubricants industry. In India it aslo has diversified into Explosives, mining & Infrastructure & Realty

HGS

The indusind Bank in India ofers a range of servces to its ever-growing client base

A brief about Gulf Oil Corporation

We are a multi division enterprise with business interest in Lubricants, Industrial Explosives, Mining & Infrastructure and Realty

LubricantsOne of the major lubricants manufacturer in private sector in India. On high Growth path

Explosive Accessories

Countrys largest manufacturer & in India. On high Growth path with CAGR Revenue growth of 30% in last 3 years

exporter of Detonators. Has high capacity plant at Hyderabad sprawling over 800 acres

Mining & Infrastructure

Operating in the focused sectors of Infrastructure and Mining . Has an excellent track record in the past

RealtyCompany has a substantial land bank. Currently developing a large project in Bangalore

GOCL - Structure

PublicPromoters Institutions

Gulf Oil Corporation Limited

49.96% 5.67% 44.37%

Gulf Oil Corporation Limited( Listed in BSE & NSE)

Industrial Explosives

REAL ESTATELubricants

Mining & Infrastructure

Financials

Key Financials - 5 years

Income & Dividends2011-12 2010-11 2009-10 2008-09 2007-08

Turnover 1076 1003 1066 839 702EBIDTA 107 105 97 78 67


Rs. In Crore

PAT 62 54 45 29 25EPS (Rs.) 6.26 6.11 6.06 3.91 3.42

Dividend 110%* 100% 90% 85% 75%Dividend Payout 41% 43% 35% 51% 52%

* Proposed

88 51

Segment Revenue

LubesExplosives

Rs. In crore

10

822

ExplosivesConsult

Capital Employed2011-12 2010-11 2009-10 2008-09 2007-08

Net fixed Assets 1019 430 581 607 2004

Net

Rs. In CroreKey Financials - 5 years


Net Working Capital

149 102 114 178 226

Other Assets 61 88 32 36 70

Total Capital Employed

1229 620 727 821 2300

Networth & Loans2011-12 2010-11 2009-10 2008-09 2007-08

Capital 19.83 19.83 14.87 14.87 14.87Reserves* 1083 423 408 398 2039

Key Financials - 5 years


Rs. In Crore

Reserves* 1083 423 408 398 2039Secured Loans 85 102 170 171 135

Unsecured Loans 181** 75 133 237 112

DE Ratio 0.24 0.40 0.72 0.99 0.12

*including Revaluation reserve** Cash and Cash equivalent as on 31-03-2012 Rs.187.89 crores (Prevoius year Rs.64.3 crores)

Number of Shareholders

Share Holding Pattern(%)

60000

65000

70000

59476 61276

6666165289

49.9644.37

50000

55000

60000

2007-08 2008-09 2009-10 2010-11 2011-12

56218

5.67

Promoters

Institutions

Public

As on 31st March of each year

As on 31st March 2012

Divisions Overview

Lubricant DivisionLubricant Division

15

The year 2011The year 2011--12 12 The year 2011The year 2011--12 12

16

Business Performance Lubricant Division

Sales Revenues

497598

822

500

750

1000

R

s

C

r

s

37%

20%

(Rs. In Crores)

17

497

0

250

500

2009-10 2010-11 2011-12

R

s

C

r

s


EBIDTA

71

90

50

75

100

R

s

C

r

s

27%

87%

(Rs. In Crores)

18

38

0

25

50

2009-10 2010-11 2011-12

R

s

C

r

s

42932

51106

60344

40000

60000

80000

19%

18%


Domestic Volumes in kl

19

0

20000

40000

2009-10 2010-11 2011-12

Comparison: Business Performance

598 867

3206

822 1004

3528

0 500

1000 1500 2000 2500 3000 3500 4000

Gulf Veedol Castrol*

R

s

.

i

n

C

r

o

r

e

s

Sales Revenue

2010-11 2011-12* Calendar Year

37%

28%

16%

10%10%

20%

30%

40%

50%

% Change Over Previous Year(Rs. In Crores)

20

69 94

738

88 77

716

0 100 200 300 400 500 600 700 800 900


R

s

.

i

n

C

r

o

r

e

s

PBT

2010-11 2011-12* Calendar Year

-19%

-3%

-30%

-20%

-10%

0%

10%

Revenue PBT


* Calendar Year

Comparison: Sales Performance

205 219 209

150

200

250

300

Q

t

y

i

n

K

T

Total Sales Volume

16%

21%19%

5%7%

18%

3%5%

10%

15%

20%

25%

% Change over Previous Year

21

43 66

51 69 60

72

0

50

100


2009-10 2010-11 2011-12* Calendar Year

-5%

3%

-5%-10%

-5%

0%

5%


2009-10 2010-11 2011-12

* Calendar Year

Strengths: Product & Technology

22

Leveraging our Technological Prowess, Yr. 2006 Gulf Oil redefines the standard for Indias Commercial Engine Oils

Yr. 2007 Gulf Oil redefines the standard for Indias Motor Cycle Engine Oils Drain Interval

Yr. 2010 Gulf Oil adds another milestones in Commercial Vehicles Segment

Yr. 2010 Introduction of MX4 Technology in Passenger Car Segment

26

Yr. 2011 Creating another Landmark in Passenger Vehicle Car Segment

Gulf in continuous pursuit to Redefine Limits

28

Yr. 2011 Redefining Limits in Commercial Segment

29

Capturing Gulfs Nonstop Quest for Excellence

30

Gulf Oil Global Operations OEM Approvals

OEM Tie-Ups: India

Ashok Leyland Volvo Penta Greaves Cotton L&T Scania Mahindra & Mahindra

32

Leyland Nissan Leyland Deere MAN Mahindra Navistar L&T Komatsu

Sustained Growth: Evolving a Stronger Market Model

33

Primary Sales (sales to

distributors) Focus has

always been strong for

Gulf in India)

2008 onwards:

Enhanced planning &

Focus on Secondary

Sales (sales from

distributors to retailers)

initiatives

2010 onwards:

Enhanced Tertiary Sales

(sales from retailers to

mechanics & users)

Support initiatives

Product Mix

PCMO, 6%

MCO, 16%

Others, 14%

2010-11

PCMO, 8%

Others, 15%

2011-12

DEO, 63%

MCO, 20%

DEO, 58%

Strengths: Strong Brand

35

Gulf & IPL

Kings XI & Chennai Super Kings- 2011

Gulf was one of the earliest brands to be associated with the Indian Premier League We continued with Kings XI & with Chennai Super Kings, IPLs most successful franchise

36

Outdoor, Stadium Branding & Press

37

Care, Courage, Endurance, Inspiration

& Youth are Gulfs Five Core Brand

Values

Mahendra Singh Dhoni, Indias Cricket

World Cup winning captain personifies

M.S Dhoni as the New Face of Gulf Oil in India

World Cup winning captain personifies

these qualities and was signed on in

2011 as our brand ambassador to

communicate the Gulf brand

proposition.

Theme ad campaign Launched in

January 2012 on TV.

38

Ad-Campaign: Truck South 2011-12 Communicating our USP of 40,000 kms

39

Ad-Campaign: Bike All India Targeted Youth Communicating ZNS & USP of 10,000 kms

40

Ad-Campaign: Brand Ad

41

Car Segment Gulf Max Supreme & Gulf Mahindra co-brand X-10 ( USP 10,000 kms drain Interval)

42

Press Conference with Chairman and MSD May12

43

Media Coverage for Press Conference: Print & Online

44

Special Signage & Shop Branding Delhi

Special Branding IPL- Chennai Chepauk Stadium

Extensive Segmentwise Below-the-Line Activities:A Key Success Factor

BTL: Activities

Lubricants Division - Outlook for FY 12-13

Continue growth momentum of 2-3 times industry growth rate

Continue investments in brand, people & current focus segment strategies

( core products)

Retain Market Share in New Generation DEO & 4T ( motorcycle segment).

Higher growth in Car Segment- PCMO

Increase Distribution Width & Depth ( focus on higher reach in metros &

rural)

49

Increase B2B (Industrial sales) share in volumes

Strengthen Channel Capability Gulf Excellence Mantra GEM

Increase OEM tie-ups ( leveraging our long drain & technical prowess)

Reduce distribution & manufacturing costs ( CAPEX in current & new plant

in South)

Retain Profitability Levels to the extent possible

Explosives Divisionand

Mining & Infrastructure Division Mining & Infrastructure Division

Explosives & Mining Services business depends heavily on the Mining scenario

IIP Mining Index YOY Growth of Mining & Quarrying Index

-2

0

2

4

6

8

10

F06 F07 F08 F09 F10 F11 F12

-4

-2 F06 F07 F08 F09 F10 F11 F12

YOY Growth 3 yr Avg growth

The mining industry has been growing at a steady rate of 3 to 4%, but suffered a setback in F12 recording a negative growth of 2%

Coal Indias Coal production has been stagnant at 430 mn MT in F10 and F11In F12 a small growth of 1% was recorded taking production to 435 MT.

The demand for coal is increasing, but the output from Coal India, due to various reasons, is not recording the required growth

IIP Mining Index(Base F 2004-05=100)

120

130

140

150

160

100

110

120

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

F08 F09 F10 F11 F12

Mining is a seasonal activity and the current year trends are in line with past trends

Explosives

Accessories

OVER VIEW

First in India to manufacture various types of detonators and slurry explosives for commercial use.

Set up its detonator factory in 1967 at Hyderabad, Andhra Pradesh, India with technical assistance of internationally famous Hungarian and Yugoslavian manufacturers.

Manufactures detonators of different types, detonating cords and other accessories.

Today, GOCL is the one of the largest detonator manufacturer in the world.

Application

ExplosivesBoosterDetonator

Detonator is the most complex to make and is very critical in application

ExplosivesThe Energy

Our Products

Instantaneous

Detonating FuseDetonators

Delay Non ElectricInstantaneousDelay Non Electric

Plain Electric

CDD/SDD/LDD,

EDN / EDG

Raydets /

e-DET

Dcord / cord

OD /

SOD

Production Performances

0.000

20.000

40.000

60.000

80.000

100.000

120.000

140.000

F 06 F 07 F 08 F 09 F 10 F 11 F12

M

.

N

O

S

DETONATORS

PERFORMANCE DETONATORS

0.00

1.00

2.00

3.00

4.00

5.00

F 06 F 07 F 08 F 09 F 10 F 11 F12

M

.

N

O

S

NON ELECTRIC DETONATORS

0.000

5.000

10.000

15.000

20.000

25.000

30.000

F 06 F 07 F 08 F 09 F 10 F 11 F12

M

.

M

T

R

S

DETONATING FUSE

DomesticExport

Market Share - Accessories

Detonators22.73% 17.01%Accessories

19%

Detfuse 6.03%Raydet

GOCL OthersInternal Estimates

8.25%

Market Share : eeee-DET

GOCLOthers

Internal Estimates

Product Certifications

The Division products are certified for European markets

CE marking & certification extended to the entire range of Explosives, Detonators and Detonating Cord range of Explosives, Detonators and Detonating Cord products.

Only manufacturer in India to have such extensive coverage

Division has implemented Integrated Management System ( IMS )

- ISO 9001:2000 Quality Management System

Plant Certifications

- ISO 14001-2004 Environmental Management System- BS OHSAS 18001-2007 Occupational Health & Safety

Management System

We are the only Company in the industry to have IMS certifications

Per workman Earning improved by more than 100% in last 5 year

405060708090

10073.64 81.02

87.23

79.0291.85

Revenue

400500600700 639

496404 374 336

ManpowerRs. In Crores

Nos

010203040

2008 2009 2010 2011 2012

0100200300

2008 2009 2010 2011 2012Year

Year

Year 2008 Year 2012

Per workman Earning Rs. 11.5 lakhs Rs. 27.3 lakh

Outlook : Explosives Accessories

Mineral and Infrastructure sectors to grow multi-fold

20% average growth p.a. expected for mineral industry over the long term

KEY STRATEGIES KEY STRATEGIES

Focus on Non-electric Detonators sales and distribution

Focus on electronic detonator sales.

Increased Trade Business and exports.

IDLconsult( MINING & INFRASTRUCTURE DIVISION )

IDLconsult the mining Contracting arm of GOCL

Started in 2001. Incubated as the Mining contract Arm of Gulf Oil IDL. We knew every mine in the country for decades and had the best talent pool. One of the few Professionally managed and Listed Company offering a comprehensive

mining solutions in India. Also, the only Integrated Explosives and Mining player Reached a peak revenue of Rs. 210 crores with EBDITA of Rs.33 crores in 2008-09. Mining projects are at standstill for last 2 years, affecting revenues adversely.

Key Drivers

67

Key Drivers Growth of GDP - Government policy on Mining & Infrastructure Government owned coal companies Contracting out Over Burden removal. Private Metal mines Need for improved productivity and efficiencies. Mining Growth Rates moving up Private Coal mines and Mine Development & Operations contracts opening up Mine owners stick to their core business - while we do the mining. Full Value chain

Equipment & Capacity Equipment Fleet

185 Tipper Trucks (Benz/Volvo/Scania)

27 Excavators 52 other equipment related to mining Batching plant and Transit mixers Concrete boom placer

Capacity: (with current equipment) >25 Million m3 of OB Removal per

yearyear >6 Million MT of Ore handling per

year. Typical Contract Duration: 3 years. Experienced with:

Coal Iron Ore Manganese Uranium Lime stone

Services Coal MiningAllotment

Mine Design

(Haul Road, Benches And OB Dump Area)

Blast Hole Drilling

Blasting

Construction of Infrastructure at coalmine(Roads, Bridges, Building)

Excavation

Loading

Transport AndDumping

Weighing

Crushing

Screening AndSizing

Mining Services provided by Consult Division for Coal Mines

20-25 Million m3 Over Burden Removal / yearTypically 10 Million m3 / yr per contract

Koyagudem, AP Best Mine at Singareni

Coal Mines

70

Best Dumpyard at Singareni

Metal sector : Services ProvidedAllotment

Mine Design

(Haul Road, Benches And OB Storage Area)

Blast Hole Drilling

Blasting

Construction of Infrastructure at metal mine(Roads, Bridges, Building)

Excavation

Loading

Transport AndDumping

Weighing

Crushing

Screening AndSizing

Current metal Mines:6 Iron ore mines1 Manganese mine1 Uranium mine

Completed metal mines:1 silica sand mine5 iron ore mines

7 stone quarries (road projects); dolomite

Mining Services provided by Consult Division for Metal Mines

Iron Ore Mines.

Iron ore mines, Kasia, Orissa

Kasia Iron ore mine The Model Mine

4 million MT iron ore annually

The Model Mine

3 D Scan of Kasia

Infrastructure

Delhi Metro Rail 20 Shafts and 2 km tunnel

Infrastructure Projects Value of projects executed : Rs ~150 crores approx. Projects covers

Roads, bridges, culverts Tunnel Residential colonies Irrigation canal

74

Key Drivers : One stop solution for a mining owner; including mining infrastructure development 200 private mining blocks to emerge with requirement of pre mining Infrastructural works Project management skills /online performance monitoring Vast experience in handling local social issues Opportunity to participate in road and Infra over next 5 years Move to General Infrastructure

CertificationTriple Certification for Quality, Environment & Safety Management

Systems

ISO 9001:2008

Certificate No: 12 100 39323

TMS

75

TMS

ISO 14001:2004

Certificate No: EMS 570382

BS OHSAS 18001:2007

Certificate No:OHS 570384

150

200

250

141.31

211.14195.65

128.89

Revenue

Mining & Infrastructure - Financials

Rs. In Crores

-50

0

50

100

2006 2007 2008 2009 2010 2011 2012

72.01 64.4450.91

10.98 17.531.81 33.1

10.65

-18.67 -21.16

RevenueEBITAEBIDTA

Factors leading to the dip for past 2 years

Statutory (Environment / forest etc) clearances for mining activities Karnataka effect The mining contracts in the Iron ore block of Orissa were affected due to the

statutory restrictions from the State and Central Government on account of

The overall Mining scenario in the country was negative

statutory restrictions from the State and Central Government on account of lease areas allowed for mining and environmental exigencies.

Uranium ore mining project for Uranium Corporation of India under the Department of Atomic Energy suffered due to issues with locals regarding mine displaced people as the mine is located in a tribal area.

Market Scenario

At 6.1%, economic growth hits 3 year low Manufacturing and Mining sector drag - Business line 1 March 2012

The mining sector recorded a contraction of 3.1 per cent in Oct-Dec 2011 compared to 6.1 per cent growth in same previous period.

This is the second consecutive quarter the sector recorded a contraction

GDP growth in % TermsQ1

2011-12Q2

2011-12Q3

2011-12Q3

2010-11Mining & Quarrying 1.8 -2.9 -3.1 6.1

Manufacturing 7.2 2.7 0.4 7.8

Outlook : Mining & Infrastructure

Encouraged by the government policies, Private sector share in mining is growing

Many new mines to open up in coal and metal sectors. New and greater opportunities for mining services

KEY STRATEGIESKEY STRATEGIES

Focus to build capability to operate large mines and reinforce our position as a professional mining contractor. Our track record of handling cumulatively 120 million cubic metres puts us in the top list of the Indian mining contractors

To optimise the strengths and capabilities of the division in other infrastructure Area

Discussions in advanced stages with several infrastructure and mining projects for undertaking large scale assignments to be finalised for a healthy pipeline / order position

The Master List released by Cabinet Committee on Infrastructure - The Financial Express, 7th March 2012

Things to change .

Mining sector to be back on track New opportunities in Infrastructure sector

Realty

Property Development

Bengaluru Property

Development at BengaluruLayout Plan

Development at Bengaluru

1800

Development at Bengaluru

SEZ : IT / ITES Park( 38.23 lakh SFT ) Non SEZ : Commercial Offices

( 4.32 lakh SFT )

P

i

c

t

o

r

i

a

l

r

e

p

r

e

s

e

n

t

a

t

i

o

n

o

n

l

y

Non SEZ : Retail Malls ( 4.50 lakh SFT )

Non SEZ : Hotels ( 3.50 lakh SFT )

Project Consultants

RSP Architects, Planners & Engineers (India) Pvt. Ltd. are the architects and MEP design consultants for the Project

Sterling Engineering and Consultancy Services Pvt. Ltd. are the Structural Consultants for the Project

CBRE - Project Management Consultants (PMC)

JMC Projects (India) Ltd. appointed as main Civil & Structural contractors for Phase-I

Category

Construction Area

(lakh sq. ft.)

RevenueArea

(lakh sq. ft.)

IT / ITES 18.95 11.47

IT / ITES SEZ Park at Bengaluru

CommercialSpace 1.94 1.30

Retail 2.03 1.35

Hotel 1.58 1.05

Total 24.50 15.17

Lease Revenue Plan for Bengaluru Project

50607080

48.2261.41

74.19

Rs. In Crores

01020304050

2014 2015 2016 2017 2018

14.07

32.69

(Excludes security deposits from lessees)

Sales Plan for non-SEZ area in Bengaluru Project

80

100

120119.91 Rs. In Crores

CommercialOffice

0

20

40

60

2016 2017 2018

35.91 41.2638.33 44.03Retail

Hotel

Lubricants Industrial Explosives Mining & Infrastructure Realty

Major Road work by GHMC to connect NH9 ( Mumbai - Hyderabad National Highway ) started. GOCL has also surrendered a portion of its land towards this, for which it is entitled to certain waiver in Impact Fees, which the development partner will pass on to GOCL as and when received by them in addition to revenue sharing ratio.

Town Planning of the property is being fine tuned in line with the connectorroads

Development at Hyderabad

GHMC approvals for segregation of Factory premises from property underdevelopment and security issues received.

JDA in final stages with Revenue Sharing Ratio of 35:65 with 35% to GOCL.

In total, 10.50 ml sq. ft of salable space is planned to be developed in phases.

Construction is planned to start by Dec.2012

Thank you

Investors Meet 22 June 2012

Documents

Transcript of Investors Meet 22 June 2012