Investor Presentation June 2017 Strictly Private and Confidential 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 1,79,014 Cr in FY17 ● 11 refineries with 80.7 MMTPA Capacity Largest Refiner in the Country ● 35% of Domestic Refining Capacity ● 12,700+ km pipelines for crude oil and products with a total capacity of 93.7 MMTPA Pan-India Pipeline Infrastructure ● 48% share in crude and product pipeline (by length) Leading Market Share ● 45.1% petroleum market share in FY17 with over Across Portfolio 46,500 touch points Integrated Operations Across the ● 2nd largest domestic player in Petrochemicals entire Energy Value Chain ● E&P: 8 domestic and 9 overseas blocks ● Overall 554 patents as on 31.03.2017 Strong Focus on Innovation Through R&D and Alternate Energy Sources ● New focus on Alternate and Renewable Energy (Wind, Solar, Biofuels, Nuclear) ● Consistent growth and profitability Driven by a Management Team That o FY11-FY17 Revenue CAGR: 6.59% has Delivered Results o Debt / Equity of 0.55x (as on Mar 31, 2017) Note: Company Filings and Petroleum Planning and Analysis Cell (http://ppac.org.in/). 2 Our Journey at a Glance From a humble beginning to an Oil Giant FY17 31-Mar-17 500000 4,45,373 120000.00 99729 Turnover 100000.00 400000 (INR/Cr) Net Worth 80000.00 (INR/Cr) 300000 60000.00 200000 40000.00 78 100000 20000.00 0 0.00 1965 1975 1985 1995 2005 2015 1965 1975 1985 1995 2005 2015 Net Worth Source: Company Filings Refining Capacity Pipeline Network Turnover MMT Kms (‘000) US$ in Billion 11.6x 81 13 6.5x 68.7 7 36 5 24 4 14.5 12 2 7 0.1 0.7 2.7 1970 1980 1990 2000 2017 1970 1980 1990 2000 2017 1970 1980 1990 2000 2017 Contribution Fortune Moody’s : Baa3 Platts Energy to Exchequer: Global 500 Fitch: BBB- “Maharatna” Ranking: 14 US$ 28 Bn Ranking : status (2016) (FY17) 161 (2016) Note: IOC is ranked 14th as per Platt Global Energy Company Rankings 2016. IOC is ranked 161 amongst Fortune Global 500 Companies in 2016. 3 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 7.9% 6.8% 7.2% 7.7% 12.53 China 6.9% 6.7% 6.6% 6.2% 11.12 ASEAN-5 4.8% 4.9% 5.0% 5.2% 4.12 3.74 Brazil (3.8%) (3.6%) 0.2% 1.7% Russia (2.8%) (0.2%) 1.4% 1.4% US EU China Japan India Source: IMF World Economic Outlook, April 2017 (GDP at constant Prices) ASEAN-5: Indonesia, Malaysia, Philippines, Thailand & Vietnam Source: CIA World Fact book (2014 & 2015 Est.).-as per website on 30 May 2017 Oil Consumption Trends Have Been Rising Marginally… …With Strong Growth in Consumption Across Key Products MMT FY18 – FY22 E CAGR 8.23% 194 185 166 6.30% 157 158 148 FY 12 FY 13 FY 14 FY 15 FY16 FY17E Diesel (HSD) Petrol (MS) Note: HSD: High Speed Diesel and MS: Motor Spirit Source: Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas, Govt. of India. Source: Petroleum Planning and Analysis Cell 4 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% 13% access to high 10% 9% 7% demand market of North India IOC Reliance HPCL BPCL Essar Oil ONGC Digboi Panipat Note: Figures as of March 31, 2017. (1) Market share based on group Refining Capacity Source: PPAC website Bongaigaon Mathura Refinery Throughput (MMT) Capacity Utilization* (%) Barauni Guwahati Koyali 105 104 65 Haldia 54 57 Paradip 99 FY 15 FY 16 FY 17 FY 15 FY 16 FY 17 *Excluding Paradip Refinery Source: Company Filing Chennai Steady Distillate Yields* (%) Narimanam Capacity(69.2 MMT) Subsidiary Cos. 80.6 (11.5 MMT) 78.8 79.3 Note: Figures as of March 31, 2017 Importing Crude from Across the Globe FY 15 FY 16 FY 17 *Excluding Paradip Refinery Source: Company Filing Changing Crude Mix for Enhanced Profitability Type of Crude Oil Used North Central Asia America Middle East 1.50% Producing Euro IV grade fuels 0.23% 66.3% Low Africa High South Sulphur Preparing for Euro VI 28.13% Sulphur East Asia 48% 3.84% 52% FY 17 Total crude oil import : 63.79 MMT (including 7.74 MMT for CPCL) Note: All figures for the year ended March 31 of the respective years. 5 Figures for FYE 2017 Source: Company Filing Source: Company Filing 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 Paradip Refinery Project – Salient Features Paradip Refinery: Augmenting IOC’s Capacity INDMAX Unit . Capacity : 15 MMPTA . One of the most modern refineries: . 100% HS including 40% Heavy . Nelson Complexity Factor – 12.2 . Product Slate : . MS 25%, HSD 38%, ATF/SKO 13%, LPG 5%, Petcoke 8% . Distillate Yield – 81% . Even with high percentage of heavy crudes . Energy Index – 50 MBN . Among the best in the industry 7 Source: Company Filing 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 FY 15 FY 16 FY 17 Crude Oil Pipelines Product Pipelines Total Pipelines Crude Product Source: Company Filing Indicate Total Capacity Source: PPAC Website Note: Figures as of March 31, 2017 Utilization Pipelines Throughput Steady Revenue Stream with healthy EBITDA In US$ millions MMT 925 945 846 764 83 76 80 31 28 29 48 51 51 FY 15 FY 16 FY 17 FY'14 FY'15 FY'16 FY'17 Crude Product EBITDA Indicate Total Throughput All annual figures for the year ended March 31 of the respective years. 8 Source: Company Filing USD-INR:64.8550 (as on Mar 31, 2017) Extensive Network of Cross Country Pipelines Length Capacity (KM) Crude Oil 5,217 48.60 Pipelines MMTPA Product Pipelines 7,491 45.09 MMTPA Jalandhar Gas Pipelines 140 9.5 (1) Bhatinda Ambala MMSCMD Sangrur Total 12,848 -- Panipat Roorkee Najibabad Meerut Rewari Delhi Dadri Tinsukia Sanganer Mathura Baitalpur Numaligarh Ajmer Tundla Digboi Motihari Bongaigaon Jodhpur Chaksu Lucknow Bharatpur Muzaffarpur Siliguri Guwahati Kot Kanpur Patna Chittaurgarh Barauni Sidhpur Rajbandh/ Mundra Ahmedabad Durgapur Kolkata AFS Kandla Viramgam Mourigram Koyali Ratlam Vadinar Korba Ranchi Dahej Haldia Hazira Raipur Paradip Berhampur Hyderabad Vizag Rajahmundry Vijaywada Legend Bangalore Chennai Bangalore AFS Ennore Asanur Crude Oil Pipeline Chennai AFS Sankari CBR Product Pipeline Trichy Ongoing Product Pipeline As on March 31 2017 Madurai Gas Pipeline 9 Refinery 9 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 SKO / LDO 49% 51% 9,570 56% Dealerships 3,904 Over 46,500 Customer touch-points 51% 44% 49% Retail Outlets Bulk Consumer 26,212 Pumps 6,520 Retail Outlets LPG Distributorships Aviation Fuel Stations Indian Oil Others All figures for the year ended March 31, 2017 Source: Company Filing Source: Company Filing & PPAC Website Other Key Highlights Operating Highlights (Inland / Export Mix) Sales (MMT) Rural Thrust and 80.7 83.5 7,051 Kisan Sevak Kendras (KSK) 76.5 Penetration 3.6 4.8 3.7 LPG Supply to over 99 million households 78.6 72.8 77.1 Petroleum Product 45.1% share in petroleum products Market Share FY 15 FY 16 FY 17 Note: (1) Others includes Aviation Fuel Stations, Terminals, Depots and LPG Bottling Plants. Inland Export Source: Company Filing 10 Source: Company Filing Unparallel Sales Domestic POL Sales (MMT) Overall IndianOil Sales 83.5 MMT 80.7 76.5 74.1 68.5* 72.6 LPG 9.2 10.1 8.4 Naphtha 9.5 10.1 MS 8.4 ATF 4.6 3.6 4.7 SKO HSD 34.5 35.8 35.4 FO/LSHS Bitumen Lubes 3.1 3.3 2.7 Others 2014-15 2015-16 2016-17 *As per old methodology Highest-ever Sales Maintaining Leadership with 45.1% Market Share 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 diversified customer base 12 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 E&P Exports Chain Domestic Consultancy Overseas Training Operatorship Downstream Marketing ^ RE&SD Wind, Solar Biofuels Nuclear Sustainability JV with NPCIL 13 One of the Leading Producer of Petrochemical Products Capacity Sales Breakup (in INR/Cr) Capacity Capex Project Total: 23080 (MT) (US$mn) Total: 19297 Total: 20273 1741 1894 Guajarat LAB 120,000 175 1416 1730 1960 2035 Styrene Butadiene 120 KTA 150 14685 Rubber Plant 12315 12210 Panipat Px / PTA 553,000 508 3236 2576 2835 1524 1030 1463 Panipat Naphtha 1,460,000 2337 FY 15 FY 16 FY 17 Cracker LAB Px/PTA Polymers MEG/DEG/TEG Others Source: Company Filing EBITDA (in INR/Cr) 7,590 6,067 3,420 2,036 FY 14 FY 15 FY 16 FY17 Source: Company Filing 14 Backward Integration Through E&P IOC: E&P Capabilities Status of Domestic and Overseas Blocks Total 9 Blocks .