Performance 2007-08

Press conference New Delhi, 28th May 2008

22

Covers…

Highlights 2007-08

Performance

Physical

Financial

Group companies

Open Forum

Highlights 2007-08

IndianOil Group of Companies

44

Highlights 2007-08Performance against odds

Turnover Rs. 2,47,479 crore

Profit After Tax : Rs. 6963 crore

Highest ever product sales

Highest ever throughput of refineries and

Pipelines

Refineries surpassed 100% capacity utilization

Consolidated petrochemical business

55

Highlights 2007-08Performance against odds

IBP Petroleum business integrated with IOC

Marketing Division following its merger on 2nd May

2007

SERVO lubricants exports grew by 56%; Footprints

extended to Indonesia, Vietnam, Nigeria and Oman

Moved up 18 places to 135 in ‘Fortune Global 500’

listing in 2007

20th largest petroleum company of the world

PerformanceScaling new heights

IndianOil Group of Companies

77

RefiningRaising the bar

38.5

47.4

44.0

2005-06 2006-07 2007-08

14%

7.7%

Throughput Throughput (Million Tonnes)(Million Tonnes)

Capacity Utilization (%)

Highest-ever Throughput in 2007-08

93.1%

98.3%100.1%

88

RefiningImproving margins

Highest ever high sulphur crude oil processed - 48.8%

against previous high of 43.7%

Processed 9.4% heavy crude oil against 3% in 2006-07.

New facilities at Mundra Port for handling heavy crude oil and

blending heavy and light grades

Sharing of feedstock & intermediates among group refineries

for maximizing capacity utilization & value addition

Lowest energy consumption of 67 MBN* vis-à-vis 71 MBN in

2006-07

* An energy index defined as Mbtu/Bbl/NRGF

99

PipelinesUnderground highways

27.332.4 35.8

18.019.3

21.3

2005-06 2006-07 2007-08

45.3 14%51.7

57.1

10.5%

Crude Oil

Products

ThroughputThroughput(Million Tonnes)(Million Tonnes)

Highest-ever Throughput in 2007-08

Crude blending facilities commissioned at Mundra Port to improve refining margin

1010

MarketingFuelling the economy

1.3

1.5

1.7

53.4 57.6

46.2

2005-06 2006-07 2007-08

47.5

54.8

15.4%

8.1%

59.3

Products

Gas

Domestic SalesDomestic Sales(Million Tonnes)(Million Tonnes)

Highest-ever Sales in 2007-08

1111

MarketingReaching out, touching lives

Thrust on KSKs continued with commissioning of 727 KSKs out of 1187 ROs opened during 2007-08, taking their total number to 2050 out of 17642 ROs

Enrolled 37 lakh new Indane customers, taking total strength to over 504 lakh

Opened 4 new Aviation Fuel Stations, with their number reaching 101

352 Bulk consumer pumps added during 2007-08, their number growing to 7140

1212

Over 34,000 marketing touch points (55.5 % of Industry)

Petrol/Diesel Outlets17,642 (47.7%)

Including 2050 KSKs

Petrol/Diesel Outlets17,642 (47.7%)

Including 2050 KSKs

LPG Distributorships4,996 (53.3%)

LPG Distributorships4,996 (53.3%)

Bulk Consumer Pumps

7,140 (88.3%)

Bulk Consumer Pumps

7,140 (88.3%)

LPG Bottling Plants89 (49.7%)

LPG Bottling Plants89 (49.7%)

SKO/LDO Dealerships

3,963 (63.7%)

SKO/LDO Dealerships

3,963 (63.7%)

Terminals/Depots166 (43.6%)

Terminals/Depots166 (43.6%)

Aviation Fuel Stations

101 (67.3%)

Aviation Fuel Stations

101 (67.3%)

As on 1.4.2008

MarketingReaching out, touching lives

(Figures in brackets indicate % share in the Industry)

1313

Branded fuels XTRAPREMIUM and XTRAMILE registered growths of

89% and 65% respectively vis-a-vis previous year

XTRAPREMIUM introduced in 2838 new outlets,

extending availability to 7071 ROs

XTRAMILE introduced in 2245 new outlets, making it

available in 10477 ROs

….maintaining leadership

MarketingPremium offerings

1414

Branded services XTRAcare outlets – providing value added services,

increased from 1052 to 1994

SERVOXPRESS launched as one stop shop for auto

care services – from 3 in 2006-07 to 161 in 2007-08

XTRAPOWER Fleet Card : 13.8 lakh members, about Rs.

9,800 crore transaction

IndianOil Citibank Co-branded Card: over 9 lakh

members, Rs. 275 crore transaction

MarketingPremium offerings

1515

MarketingQ & Q Assurance

Retail automation - completed in 1038 outlets Real time stock update

Enhanced customer service through automatic billing

and history of transactions

Vehicle tracking System - completed for 14371

trucks To ensure that quality product reaches the customer at

retail outlets

….gaining customer confidence

1616

R & DCommercializing in-house technologies

Obtained approval for 12 patents, including 1

from U.S. Total No. of patents obtained – 120,

including 50 international patents

160 lubricant formulations commercialized and 46

approvals obtained from OEMs

In-house developed Needle Coke (Niche product)

technology licensed to Numaligarh Refineries Ltd.

….leading indigenous technology development

1717

Exploration & ProductionBackward integration

Gas discovery made in Assam by consortium of IOC, OIL and HOEC. Commercial viability being established

Consortium of IOC-OIL-Sonatrach (Algeria) awarded Area 95/96 in Libya. EPSA signed on 25th May 2008

A Special Purpose Vehicle- Ind-OIL Overseas Ltd. formed between OIL and IOC and incorporated at Port Louis, Mauritius to undertake acquisition of overseas E&P assets

1818

NELP Rounds ( 8 blocks) CBM Rounds ( 2 blocks) Farm – in ( 1 block)

Exploration & ProductionBackward integration

Bidding

Yemen (2 blocks) Libya (3 blocks) Iran (1 block)

Farm-in

Gabon (1 block) Nigeria (1 block)

Domestic

Overseas

1919

PetrochemicalsAdding to the bottom line

Revenue of over Rs. 2500 crore achieved through

petrochemical sales

Achieved 11.7% growth in LAB sales, including

export of 28.97 TMT

IOCLAB exports to nine countries, including to

Pakistan and Philippines for the first time

Maiden export of paraxylene to Indonesia,

Thailand and Malaysia

2020

GasFuel of the future

Successfully commissioned the technology innovation project “LNG at the Doorstep” through cryogenic tankers for Industrial customers

Achieved gas sales of 1.74 MMT in 2007-08 against 1.48 MMT in the previous year

Signed an MoU with GAIL for incorporation of JV Company for city gas distribution in West Bengal

In discussion with several companies for gas sourcing and city gas distribution

2121

Green Agenda Ethanol Blended Petrol (EBP)

5% EBP supply commenced in 5 additional states and 3 UTs during the year

With the above, EBP has been introduced in 14 states and 3 UTs Bio-diesel

Signed MoU with Chattisgarh Renewable Development Agency (CREDA) and Govt. of Chattisgarh for formation of a JV to carry out activities related to crop plantation for production of Bio-diesel on commercial scale

2000 hectares of non-forest wasteland allotted to IOC in Jhabua district of MP for Jatropha plantation

Talks in progress with Rajasthan, Gujarat & Orissa Govts. for allocation of wasteland for undertaking bio-diesel related activities

2222

Globalization Consolidating presence overseas

Lanka IOC Limited Sales grew by over 8% during the year

Market share maintained at 11.4%

18 TMTPA lube blending plant commissioned at

Trincomalee; 8 new lube distributors commissioned

State-of-the-art laboratory for testing fuels and

lubricants also commissioned

Launched bunkering business

2323

Globalization Consolidating presence overseas

IndianOil (Mauritius) Ltd. Overall sales grew by 19.5% to 194.9 TKL vis-a-vis 163 TKL

in 2006-07 Market share rose by 3.6% to 19.8% in 2007-08 Emerged as the leader in the highly competitive aviation

business, with a market share of 35%

IndianOil Middle East FZE A quantum jump in the sale of Base oils and lubricants

recorded in only its 2nd year of operation – sales grew to

12.65 TMT in 2007-08 as compared to 4.06 TMT in 2006-07 SERVO distributors appointed for Oman, Qatar and Bahrain

2424

Exports

Figures in MMT

Product 2005-06 2006-07 2007-08

POL 2.09 3.13 3.33

Petrochemicals

LAB 0.011 0.024 0.029

Paraxylene - - 0.017

2525

Pipelines423 (8.7%)

Marketing 44 (0.9%)

Petrochemicals2436 (49.8%)

R&D 26 (0.5%)

Other diversification 3,259 (7.5%)

Refinery capacity addition, yield & quality improvement

1738 (35.6%)

Total: Rs 4,889 crore - over 100% achievement

Capital Plan expenditure : 2007-08

2626

Project Approved/ Estimated Cost

(Rs. crore)

Anticipated Completion

1 Paradip Refinery * 25,646* End 2011-12

2 Naphtha Cracker, Panipat 14,439 November 2009

3 Resid upgradation, Gujarat 5,693 January 2010

4 Once-through Hydrocracker & capacity

augmentation, Haldia

2,869 December 2009

5 Panipat Refinery expansion: from 12 to 15

MMTPA & augmentation of crude oil pipeline

1,213 December 2009

6 Paradip-Haldia crude oil pipeline 1,178 June 2008

7 Dadri-Panipat R-LNG line 251 January 2009

8 Chennai-Bangalore product pipeline 232 July 2009**

9 Koyali-Ratlam product pipeline 225 October 2008

10 Panipat-Jalandhar LPG pipeline 187 August 2008

Total 51,933

* Approved in principle; ** 24 months from Environment & Forest clearance

Major Ongoing Projects

2727

Pipelines 1,290 (3.0%)Marketing

1,300 (3.0%)

Petrochemicals11,844 (27.3%)

R&D 300 (0.7%)

Other diversification 3,259 (7.5%)

Refinery capacity addition, yield & quality improvement

25,400 (58.5%)

Total: Rs 43,394 crore

Capital Plan Outlay – XI PlanInvestment for growth

Growth strategy is the key to success

2828

Revisiting Corporate Vision

V2 Confluence (Vision with values)

IndianOil’s Vision statement drafted in 1999. The

dynamic business environment has necessitated

revisiting the Vision statement to reflect new goals,

aspirations and core values

A unique re-visioning exercise launched within the

Corporation, called V2 Confluence (Vision with Values),

engaging employees for a Shared Vision

2929

Care for Environment

Initiatives include

Green fuels

Product quality improvement

CDM projects

Effluent treatment/ ecological park in refineries

Tree plantation

….critical to sustainability

3030

Corporate Social Responsibility

Substantive contributions being made to national causes, social welfare and community development programmes throughout the country

Community Development programme adopts a multi-faceted approach involving: Health Family welfare Education Environment protection Drinking water and sanitation Empowerment of women National Heritage

0.75% of net profit of the preceding year is set aside for CSR

IndianOil Group of Companies

Performance(Financials)

3232

Turnover

2005-06 2006-07 2007-08

Rs. croreRs. crore

20.5%

12.1%

1,83,172

2,20,779

2,47,479

3333

Net under realization

2,190

9,774

4,774

2005-06 2006-07 2007-08

Rs. croreRs. crore

3434

Desired Price vs Actual Price

35

40

45

50

55

60

2004-05 2005-06 2006-07 2007-08 27.5.08

PetrolRs/ltr

16.34

23

28

33

38

43

48

53

2004-05 2005-06 2006-07 2007-08 27.5.08

DieselRs/ltr

23.49

7

12

17

22

27

32

37

2004-05 2005-06 2006-07 2007-08 27.5.08

KeroseneRs/ltr

28.72

250

300

350

400

450

500

550

600

2004-05 2005-06 2006-07 2007-08 27.5.08

LPG-DomesticRs/Cylinder

305.90

Delhi prices

3535

Profit After Tax

2005-062005-06 2006-072006-07 2007-082007-08

49154915 74997499

Rs crore

74997499 6963

3636

Profit After Tax - Breakup

2007-08

Loss before upstream sharing and GoI bonds (23240)

Add upstream sharing 14323

Loss before bonds (8917)

Add compensation in form of GoI bonds 18997

Profit Before Tax 10080

Less tax 3117

Profit After Tax 6963

3737

Contribution to Exchequer

24449 28431 34249

2017227733

28419

2005-06 2006-07 2007-08

44,621

56,16462,668

Central

States

Rs. croreRs. crore

3838 * In equivalent INR( ) Indicates loss

Financials - Subsidiaries

SubsidiaryTurnover Profit After Tax

2006-07 2007-08 2006-07 2007-08

BRPL 6,426 6,645 185 294

CPCL 29,349 32,891 565 1,123

LIOC* 1,405 1,720 (29) 90

IOML* 427 535 8 14

IOC ME FZE* 18 41 (0.22) 1.3

Rs crore

3939

Financials - Major JV Companies

SubsidiaryTurnover Profit After Tax

2006-07 2007-08 2006-07 2007-08

Petronet LNG 5,501 6,555 313 475

Avi-Oil India 36 25 3 1

IndianOil Tanking 418 836 21 34

Lubrizol 482 511 14 48

IndianOil Petronas 236 1114 13 40

Greengas 11 41 (1) 5

( ) Indicates loss

Rs crore

4040

Towards sustainable & inclusive growth

Thrust on Fuelling the economy

Reaching the remote rural corners of India

Biofuel and renewable initiatives

Providing livelihood opportunities

Protecting the environment

CSR initiatives in Health, Eductaion, Women

empowerment, Heritage protection, etc.

..…. for us, India first

Open Forum