Annual Press Conference 2013 30 5 2013 New

Annual Press Conference 2013 30. 5. 2013 New Delhi 1

Structure of the presentation Industry synopsis… At the core of Indian. Oil… The year that was… Performance at a glance… Open forum… 2

Industry Synopsis 12/3/2020 3

Economy and oil Economy vs. POL consumption 8 7 Oil Consumption Growth (%) 9. 5 9. 6 9. 3 6 4 6. 7 3 12 9. 3 10 6. 2 8 6 6. 8 4. 5 2 0 8. 6 6. 7 5 1 GDP Growth (%) 3. 5 1. 4 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 5 4. 9 5 2. 9 4 2 0 2010 -11 2011 -12 2012 -13 • Indian economy grows at 5% • POL consumption @ 155. 4 MMT in 2012 -13 from 148. 1 MMT during 2011 -12 4

Indian oil and gas overview Crude Imports (MMT) Domestic Production (MMT) 159. 3 111. 5 99. 4 32. 2 2005 -06 34. 0 2006 -07 121. 7 34. 1 2007 -08 163. 6 171. 7 184. 5 132. 8 33. 5 2008 -09 33. 7 2009 -10 37. 7 2010 -11 38. 1 2011 -12 37. 9 2012 -13 • Crude imports (volume) - CAGR 9. 2% since 2005 -06 Import dependency about 77% from 76% in 2011 -12 • Crude import bill @ USD 144 billion - CAGR 20. 6% since 2005 -06 • • Domestic oil production stagnant at ~38 MMT • Gas production declined to 40. 7 BCM from 47. 6 BCM in 2011 -12 5

Oil dynamics 120 Benchmark crude oil price movement USD/ bbl 117. 98 110 106. 45 Av. Indian Crude Basket: USD 108/ bbl 100 94. 51 90 80 Apr'12 May Jun Brent(Dated) Jul Aug Sep NYMEX WTI Oct Nov Dubai Dec Jan'13 Feb Mar'13 Indian basket Moderation in Indian crude basket - Average price at USD 108/bbl vs. USD 112/bbl in FY 12 6

At the core of Indian. Oil 7

Indian. Oil – A paragon in the sector Nation’s largest refiner * 65. 7 MMTPA capacity * 30. 5% of domestic refining capacity Country-wide network * Over 11, 000 KM crude oil, products & natural gas pipelines Domestic market leader * 48. 2 % market share * Over 39, 400 touch-points R&D – among the best * Pioneer in lube & refining technologies * New focus on Alternate and Renewable energy The highest ranked Indian Company in Fortune Global 500, 2012 listing: 83 rd rank

Indian. Oil – A paragon in the sector… Petrochemicals – moving ahead * 2 nd largest domestic player * 2. 25 MMTPA capacity Natural gas * 8. 2% domestic market share * Aggressive infrastructure plans Exploration & Production * First-ever revenue from equity oil * Discovery in three wells Sustainable development * 25 MW wind capacity added since last year The highest ranked Indian Company in Fortune Global 500, 2012 listing: 83 rd rank

The year that was… 10

Indian. Oil – Redefining growth Highest-ever turnover of Rs. 4, 14, 909 crore - a rise of 11% from 2011 -12 Over 100% refining capacity utilization, 6 th year in a row Bringing energy to rural India –Kisan Sewa Kendras ~ 24% of total RO network 49% of the domestic LPG customer base. Record 69 lakh new LPG connections in 2012 -13 Commissioned Integrated Crude oil Handling Facilities at Paradip

Performance at a glance 12

Refineries – Performance par excellence 78. 1 56. 3 Highest-ever Distillate Yield of 78. 1%: Barauni, Panipat and Bongaigaon > 80% Lowest-ever energy consumption at 56. 3: Panipat @ 51, among the best in industry Panipat – capable of processing 90% HS and 20% Heavy crude 13

Refineries – Profitability through optimization • Highest HS crude processing at 53. 3% from 49. 2% in 2011 -12 • Heavy/ high TAN crude processing @ 13. 4% • Crude basket enlarged to 156 crudes 26 opportunity crudes out of 32 new crudes Ø Processed 1. 32 MMT Rajasthan crude; 0. 99 MMT in 2011 -12 Ø Procured 0. 88 MMT Maya crude for the first time – heaviest crude in Indian. Oil basket Ø 14

Refineries – Forward agenda • Projects under implementation: To augment by 2016 -17 Ø Capacity to 74. 0 MMTPA from 54. 2 MMTPA Ø HS crude processing capability to 67% from 53. 3% Ø Heavy crude processing capability to 21. 4% from 13. 4% Ø Distillate yield to a level of 80. 7% • Paradip - State-of-the-art, one of the most modern refineries Ø Ø Ø Capable of processing 100% HS including 40% Heavy crude Nelson complexity factor – 12. 2, comparable to the best in industry Distillate yield – 81%, Energy index – 50 MBN 15

Pipelines – Resplendent networking Economic transportation – 47% of total white oil products moved through pipelines; 36% by rail, 2% by road & 14% through coastal 12/3/2020 16

Pipelines – Spreading wings • Two additional SPMs commissioned at Paradip 5 SPMs in operation - 2 on west coast, 3 on east coast Ø Cumulative handling of over 500 MMT crude at Vadinar & over 50 MMT crude at Paradip Ø • Added storage capacity of over 360 TMT for crude oil • Blending facility at Vadinar – ready for commissioning • First customer connectivity through gas pipeline 17

Pipelines – Forward agenda • Over 110 MMTPA capacity & 19, 000 KM by 2016 -17 • Enhancement of capability to transport heavy crude Ø • • From 25 cst to 40 cst Major Crude oil pipelines Ø Debottlenecking of Salaya-Mathura pipeline Ø Augmentation of Paradip-Haldia-Barauni Pipeline Major Product pipelines Ø Paradip Raipur Ranchi Pipeline Ø Paradip-Haldia-Durgapur LPG pipeline Ø Cauvery Basin Refinery (CPCL) -Trichy pipeline 18

Domestic growth(%) - Major POL products 17. 3 4. 8 20. 7 7. 4 14. 1 13. 9 9. 0 4. 6 11. 3 ATF 10. 7 9. 7 -2. 6 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 9. 0 6. 7 1. 4 2. 1 2005 -06 8. 8 9. 1 7. 7 6. 8 10. 7 5. 0 5. 6 2011 -12 2012 -13 -4. 8 HSD 11. 1 8. 5 MS 7. 8 LPG 6. 8 7. 1 3. 8 2006 -07 2007 -08 1. 5 2008 -09 2009 -10 2010 -11 2011 -12 1. 6 2012 -13 Trend in line with economy & prices Declining growth in LPG due to capping of domestic cylinders 19

Marketing – Effulgent performance Domestic POL sales (MMT) 66. 7 6. 6 70. 1 5. 0% 7. 0 LPG 1. 5% 71. 2 7. 2 6. 3 6. 7 6. 9 5. 8 5. 4 5. 0 31. 6 34. 1 Naphtha MS ATF SKO HSD 35. 6 6. 0 5. 0 3. 9 2010 -11 2011 -12 2012 -13 LDO FO/LSHS Lube Greases Bitumen Others Highest-ever product sales; Market leader with 48. 2% market share 20

Marketing – Making winning moves • Highest No. of ROs commissioned Ø Over 10% sales contributed by KSKs • 1600 ROs automated during the year, total reached to 4, 377 • Commissioned an AFS at Thoise: 10, 500 ft. above MSL • Highest-ever supplies of 1 MMT to Nepal • Added over 600 TMTPA of LPG bottling capacity 21

Marketing – Reaching out, touching lives SKO/ LDO Terminal/ Dealers, 3938 Depots, 135 (42. 2%) (59. 8%) Consumer Pumps, 6361 (86. 0 %) As on 31. 3. 2013 AFS, 97 (50. 3%) LPG Distributors, 6467 (51. 3%) Retail Outlets, 22372 (45. 6%) LPG Bottling Plants, 90 (48. 4%) 39, 460 touch points - 51. 7 % of the industry 22

Marketing – Forward agenda • Major projects under implementation Ø LPG facilities and marketing terminal at Paradip Ø LPG import facility at Kochi Ø Various re-sitement projects for optimal logistics • Dedicated ATF pipelines • Initiatives in retail network Ø Automation of 12, 000 ROs (all ROs selling more than 100 KL/ Month) by 2016 -17 Ø Introduction of large format ROs at highways 23

R&D – Class apart • Indigenously developed technologies Ø Indmax at Guwahati & Paradip Ø LPG Deasphalting process implemented at Haldia Ø INDAdept. G being implemented at Guwahati Ø View of Indigenously developed INDMAX technology at Paradip Food grade Hexane unit commissioned at HMEL, Bhatinda • India’s first Integrated lignocellulosic biomass to ethanol pilot plant • First time co-processing of non-edible oil in DHDT unit of CPCL, Chennai Lignocellulosic Biomass to ethanol pilot plant 24

R&D – Class apart • Lubricants Ø 120 product formulations developed Ø Received 43 OEM/customer/defence approvals & re -certifications • Patents Ø Applied record No. of 52 patents in a year: 8 patents granted • Status of patents: India USA Others Total Lubes Refineries Others Total 133 56 65 254 35 138 81 254 25

PROPEL – Ideas for growing business Domestic Petrochemicals sales, KT 1824 1480 POLYMERS 842 909 208 147 GLYCOLS 614 228 312 447 542 552 107 96 118 2010 -11 2011 -12 2012 -13 PX/ PTA LAB 2 nd largest petrochemicals capacity share in the country 12/3/2020 26

Petrochemicals – Forward agenda • Entering into niche segment Ø 139 TMTPA, Butadiene Extraction Unit at Panipat Ø 120 TMTPA, Styrene Butadiene Rubber plant at Panipat • Revamp & debottlenecking of existing PX/PTA & LAB units • Poly Propylene unit at Paradip • Petcoke Gasification & Acetic Acid project 27

Gas – Emerging as the fuel of choice 25% 12/3/2020 10% Highest-ever R-LNG sales 28

Gas – Emerging as the fuel of choice… • Finalized PMC for Ennore LNG project • Aggressive moves for laying cross-country gas pipelines • Authorized to build CGD networks in Chandigarh & Allahabad • Supplies through ‘LNG at Doorstep’ - growth of 77% 29

E&P – A landmark year • Acquired 10% stake in Niobrara Shale Oil JV asset, Carrizo, USA – brought in 1 st E&P earnings • Production started in Project Carabobo, Venezuela • 1 st ever drilling in the domestic operated block • Discovery in 3 wells A view of the drilling site: IOC Khambel 1 30

Clean energy – Towards a sustainable future • Wind capacity enhanced to 63 MW • 100 GWH grid-connected renewable energy generation in a year Initiatives towards cleaner tomorrow Ø Carbon foot printing at 48 locations Ø Energy audit of 28 buildings Ø Rain water harvesting at 54 locations Ø Solarization of about 300 ROs 31

CAPEX plans - Investing for a brighter tomorrow Rs. crore • CAPEX of Rs. 48, 655 crore during XI Five Year Plans, BE Plan, 7. 1% more than plan • Budgeted Estimate (BE) of Rs. 56, 200 XII Plan 56, 200 XI Plan 45, 430 crore in XII Plan Ø Rs. 9378 crore in 2012 -13 Ø BE of Rs. 11, 277 crore in 2013 -14 XII Plan CAPEX, Rs. crore E&P Refining & Marketing Petrochemicals 56, 200 41, 456 8, 544 X Plan 24, 400 32

Global agenda – Beyond boundaries Turnover (Rs. crore) Indian. Oil • Aviation, terminaling & retail Mauritius • 24, 000 MT storage terminal • 18 retail outlets Ltd. Lanka IOC Ltd. 1274 2011 -12 2012 -13 841 2010 -11 • Storage, terminaling & retail • 157 retail outlets • Bunkering, lube blending & marketing, bitumen 1192 2090 2010 -11 2557 2011 -12 3147 2012 -13 Other overseas subsidiaries: IOC Middle East FZE – Marketing of Lubricants and POL products IOC Sweden AB and IOC (USA) Inc: Facilitating overseas upstream operations 33

CSR – Making a difference Assam Oil School of Nursing, Digboi 20 girls successfully completed 4 -year nursing course Cumulatively, 317 girls employed so far (100% success) 34

CSR – Extending care and support • 2600 educational scholarships • Total cost: Rs. 11 crore in 2012 -13 • 52 Mobile Medical Units operational, linked to 52 Kisan Seva Kendras in AP & UP • Treated over 1 million patients 12/3/2020 35

Financials 36

Turnover – Marching ahead (Rs. crore) Description Inland sales & exports Product sales to OMCs 2011 -12 2012 -13 Var. (%) 313044 344484 9. 6 49255 52547 6263 54. 3 Petrochemicals 11889 16533 39. 1 Total 378247 419827 11% 110607 Q-4 16. 1 4059 Less: Discount 373926 101105 Gas Sub-Total 414909 11. 0 96006 86102 Q-3 107686 Q-2 94680 Q-1 4321 4918 13. 8 90713 101936 373926 414909 11. 0 2011 -12 2012 -13

Profit after tax Rs. crore 7445 5005 3955 2010 -11 2011 -12 2012 -13 38

Under-recoveries (Rs. crore) 2011 -12 2012 -13 75469 85793 Discount from upstream companies 29961 31967 Budgetary support from Govt. 45486 53278 Total compensation 75447 85245 22 548 % of Unmet Under-Recovery 0. 03% 0. 64% Loss on MS (Due to non-revision of prices) 2203 485 Total Unmet U/R (including loss on MS) 2225 1033 Gross Under-Recovery Less: Compensation Unmet Under-Recovery

Borrowings 80000 Rs. crore 75, 447 2 80, 894 1. 8 70000 60000 1. 6 52, 734 1. 32 1. 27 50000 1. 4 1. 2 40000 0. 950000001 1 30000 0. 8 20000 10000 D/E Ratio 90000 2, 670 6, 409 5, 591 0 0. 6 0. 4 31. 3. 2011 31. 3. 2012 Interest Cost 31. 3. 2013 Borrowings Debt Equity Ratio 40

Contribution to Exchequer (Rs. crore) 41

Open Forum 42