Cairn India - Corporate Presentation - September 2013

1. © 2013 Cairn India Limited
Corporate Presentation
September 2013

2. Corporate Presentation
2
Disclaimer
This material contains forward-looking statements regarding Cairn India and its affiliates, its corporate plans, future
financial condition, future results of operations, future business plans and strategies. All such forward- looking
statements are based on the management's assumptions and beliefs in the light of information available to them at this
time. These forward-looking statements are by their nature subject to significant risks and uncertainties; and actual
results, performance and achievements may be materially different from those expressed in such statements. Factors
that may cause actual results, performance or achievements to differ from expectations include, but are not limited to,
regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts,
wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business
conditions. Cairn India undertakes no obligation to revise any such forward-looking statements to reflect any changes in
Cairn India's expectations with regard thereto or any change in circumstances or events after the date hereof. Unless
otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not
represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or
any of Cairn India’s joint venture partner.
All data points in the presentation refer to status as on 31 March, 2013, unless otherwise specified.

3. 3
Corporate Presentation
Where are we today
World class resource
Base
Operational excellence
and Strong skill set
A top 20 global
independent E&P
company;
Robust financial
position
Active Exploration
Program for Growth
Market Cap - US$10bn

4. 4
Corporate Presentation
World Class Resource Base
• Balanced Asset Portfolio, Net acreage in excess of 42000 sqkms, ~ size of Switzerland
• Successful track record across Exploration, Development and Production cycle
Asset Locations & Share of Production
Assets across the life-cycle of a field
Asset
Basin
Exploration Development Production
Domestic Assets
RJ-ON-90/1
Barmer
CB/OS-2

KG-ONN-2003/1
KG Onshore
KG Offshore
KG Offshore

RJ-ON-90/1
70%

Ravva


KG-OSN-2009/3


Cambay

INDIA


CB/OS-2
MB-DWN-2009/1 Mumbai Offshore
PR-OSN-2004/1
Palar – Pennar
KG-ONN-2003/1
40%

49%
RAVVA
22.5%

MB-DWN-2009/1
International Assets
KG-OSN-2009/3
100%
SL-2007-01-001
Mannar

Block 1
Orange
100%

PR-OSN-2004/1
35%
BLOCK 1
60%
SOUTH
AFRICA
SL-2007-01-001
100%
Name of Asset
Participating Interest (%)
Note: Percentages represent Working Interest

5. 5
Corporate Presentation
Sustained Year on Year Growth
• Rich Resource base supports production growth
• Currently account for over 25% of India’s oil production*
• Strong Partnerships with state and private companies
Volume Growth
Product Mix
CAGR: 31%
>225
5%
205
173
149
Oil
69
Gas
95%
FY10
FY11
FY12
FY13
Cairn India’s Production Growth (kboepd)
* Source: Ministry of Petroleum and Natural Gas, Government of India
FY14 Exit*
Total Production of 212,442 boepd in Q1’FY14

6. 6
Corporate Presentation
Robust Financial Performance
• Strong revenues and profits driven by lowest quartile F&D and operation costs
• Flexibility to develop asset base and support accelerated growth
CAGR
66%
2.3
0.3
0.3
FY09
FY10
2.5
FY11
FY12
PAT (US$ bn)
2.2
0.2
0.2
FY09
FY10
1.7
FY11
FY09 values are for 15 month ended Mar’09
FY12
FY13
2.4
1.8
0.2
FY10
1.9
FY11
FY12
0.2
FY09
FY13
CAGR
61%
1.4
EBITDA (US$ bn)
3.2
Cash Flow
from Operations
(US$ bn)
Revenue (US$ bn)
CAGR
55%
FY13
CAGR
58%
2.0
1.4
0.2
FY10
FY11
FY12
0.2
FY09
1.5
FY13

7. Corporate Presentation
Operational Excellence across the value chain
•
Safety First - LTI free man hours of 65 million across assets as on
30 June13
•
Opened 4 frontier basins with >40 discoveries
•
Excellence in Execution - Discovery to Production
•
•
•
Onshore Oil production - in 5 years in Rajasthan
Offshore natural gas production - In 28 months in Cambay
Leveraging technology to reduce total cost of ownership
•
Skin effect heating system – world’s longest continuously
heated pipeline
•
Modular well pad concept – rapid moving rigs
•
Uptime greater than 98% with field direct opex at $3/bbl
7

8. 8
Corporate Presentation
Efficiently manage onshore and offshore projects
Strong Infrastructure in place
Rajasthan: Production Trends
200000
150000
100000
50000
0
2009-10
2010-11
2011-12
Cambay (CB/OS-2):
Gas Producing to Oil Producing
Ravva: Production Trends
70,000
60,000
50,000
40,000
30,000
20,000
10,000
1995-961999-002003-042007-082011-12
2012-13
25000
20000
15000
10000
5000
0
2002-03
2005-06
Gas BOE (boepd)
2008-09
2011-12
Oil Production (bopd)

9. 9
Corporate Presentation
Active Capex Program for Growth
To invest $3 billion net over 3 years
To prove up reserves through exploration
To increase production primarily in Rajasthan
Block (RJ)
Currently Under
Development/
Production
Gross In
Place
MBARS
2,272
(Mmboe)
~15%
RJ Additional
Production
(BH +
Satellite
fields)
~20%
Significant Potential In Barmer Basin
Gross
EUR
~25%
1,069 (~47%)
RJ
Exploration
Future
Development &
Prospective
Resources
Other
Assets
~40%
Gross In
Place
1,925
BH + 19
Disc.
3,100
Exploration
Gross
EUR
RJ Production
Sustenance (MBA + EOR
+ Infill drilling)
165 (~9%)
530 (~17%)
Exploration (45%)
Development (55%)
≈80% of the
capex planned
for RJ
Note: *Capex excludes spend on new ventures &
development of new exploration discoveries in RJ
TOTAL
Gross in Place
Gross
EUR
7,297
1,764
Note: Percentages represent recovery factors

10. 10
Corporate Presentation
Improving Ultimate Recovery (EOR + Infill drilling): ≈$1,200Mn
• To sustain the MBA plateau via EOR technology and infill drilling
Polymer Flood - Improved Sweep Efficiency
Areal Sweep improvement
Enhanced Oil Recovery Pilot Performance
Vertical Sweep improvement
Alkaline Surfactant Polymer Flood- Improved Displacement Efficiency
Original Oil
Sand Grain
Remaining oil
Water
Oil Saturation Display at Pore Level Reduction in Trapped Oil
Initial
After Waterflood
After ASP flood

11. Corporate Presentation
Additional Producing Fields (BH + Satellite): ≈$450Mn capex
Monetizing ≈ 2bn boe contingent resource base
• Barmer Hill formation spread over a large area in the basin
• Oil and Gas found in majority of the wells penetrating
BH formation
• Low permeability tight reservoirs
• Infrastructure is already in place for quick
monetization
• Require fracture stimulation and horizontal wells to
optimize recovery
• Data Analogs indicate recovery factors of 7 to 20%
• Development plan for BH submitted
• Production expected to commence in FY14, subject
to approvals
11

12. Corporate Presentation
Exploration in Rajasthan (RJ) - ~US$ 750m
To pursue high-value exploration opportunities
A Target-Rich Environment
~100 Prospects; 20 Play Types
Prospective Resources: 530 mm boe Gross Risked Recoverable
(3.1 bn boe in place)
Two-pronged Strategy


 Proven Play Extensions
• Drill prospects with largest risked volumes first
• Revise / re-prioritise remaining prospects based on results
 Unproven Plays
• De-risk the play – Drill lowest risk prospect first
• Revise / re-prioritise tested play based on results
Exploration Program
 Plan to drill ~100 E&A wells; rig count to increase multifold
 Acquire ~1,900 sq km of additional 3D seismic to assist in extending
proven plays & de-risking prospects
12

13. Corporate Presentation
Major Undrilled Play Types in RJ
13

14. 14
Corporate Presentation
Ensuring growth in other assets - $ 600Mn
Portfolio Diversity Across India
BASINS
(Established & Emerging)
 Raava: ‘High Value/ High Risk’ prospect to be drilled in
H2 FY13-14
 KG-ONN-2003/1: Drilling underway to appraise the
second discovery with 2nd well planned in FY14
RAJASTHAN
 KG-OSN-2009/3: Conditional approval to carry out
petroleum operations in 65% of block
 MB-DWN-2009/1: Conditional approval to carry out
exploration activity received
INDIA
MUMBAI
RAAVA
 PR-OSN-2004/1: Significant progress towards
resumption of exploration activity
KG – ON/OFFSHORE
PALAR/
PENNAR
Growing International Exposure
 Successful exploration in Sri Lanka – two gas discoveries;
commercial options under review
 3D seismic gathered in S. Africa Block 1; processing
underway; plan to drill exploration well in 2015
 A growth-focused New Ventures strategy aimed at
capturing best-fit international opportunities
MANNAR
SOUTH
AFRICA
ORANGE
KG: Krishna Godavari
MB: Mumbai Basin
PR: Palar Basin

15. 15
Corporate Presentation
Summary
• Delivered on the investments made in the past with high returns
• High level approval for exploration in Rajasthan to help future delivery
Restart RJ
Exploration
Exploration
Success
Ravva Redevelopment
Rajasthan & CB/OS-2
discoveries
FY2000 - 2006
FY1999
Market Cap
End of Period
Reserves & Resources
End of Period
US$
0.5bn
Policy clarification on
exploration
FY2007-2013
US$ 6.0bn
1.29 bn boe
FY2014 - 16
US$ 10bn
1.17 bn boe
$3Bn Capex plans for
future growth
Target Additional 530
mmboe from RJ exploration

16. 16
Corporate Presentation
Fact Sheet
Value
Proposition
Top
Mgmt
Financial
Strength
As India’s largest private sector E&P company
accounting for 25% of the country’s energy production,
Cairn India is well positioned to grow revenues and
profits. Its strong track record, low cost of operations,
high cash flow generation, combined with the world's
growing demand for energy, provides confidence for
future growth in reserves and production while meeting
its return on capital targets.
 Chairman: Navin Agarwal
 CEO: P. Elango
 CFO: Sudhir Mathur
FY 2013
P&L
 Revenues: US$3.2 billion
 PAT: US$2.1 billion
 EPS: INR 63.2
 Cash Flow from Operations: US$2 billion
Balance Sheet
 Cash: US$3.1 billion
 Assets: US$9.9 billion
 Zero Debt Company
Other Ratios
 Dividend Yield: 4%
 DPS: INR 11.5
 BVPS: INR 250
Market Cap: ~$10 billion
Listed on: NSE, BSE
Index Representation - Nifty 50 and MSCI
Symbols: CAIRN (NSE); 532792 (BSE);
INE910H01017 (ISIN); CAIR (Bloomberg)
 Shares outstanding: 1910 million
 Shareholding Pattern:
Vedanta Group:
59%
Cairn PLC:
10%
Institutional Holding:
28%
Retail:
3%




Stock
Market
FY13
Production
 Gross Production: 205,323 bopd
 Oil: 195,780 bopd
 Gas: 57 mmscfd
Countries
 India
 Sri Lanka
 South Africa
Producing
Assets
 Rajasthan (RJ-ON-90/1)
 Andhra Pradesh - Ravva (PKGM-1)
 Gujarat - Cambay (CB/OS-2)
Reserve Base
 Gross 2P Hydrocarbons Initially in Place (mmboe): 5,641
 Gross 2P Reserves & Resources (mmboe): 1,386
 Net Working Interest 2P Reserves & Resources (mmboe): 871
Capital
Budget
 $3 billion over three years (FY2014, 2015, 2016)
 55% for Production; 45% in Exploration
Capital
Allocation




Achievements
 Together with its JV partners accounts for ~25 per cent of India’s crude oil production
 Among the top 20 global independent E&P companies
 Built world’s longest (~600 kms) continuously heated and insulated pipeline
Awards
 Fastest growing energy company in the world at Platts Top 250 Energy Company
Awards 2012
 16 awards in 26th Mines Safety week 2012 under aegis of Directorate General of
Mines Safety (DGMS), Ajmer
 Golden Peacock Award for Excellence in Corporate Governance, 2012
~15% additional production (BH and satellite fields)
~40% RJ production and sustenance (MBA+EOR+Infill Drilling)
~25% RJ exploration
~20% other assets (e.g. KG, Ravva, Sri Lanka, South Africa)
Contact Information
Nidhi Aggarwal
M: 91 – 98101 97755
nidhi.aggarwal@cairnindia.com
cilir@cairnindia.com
Cairn India Ltd.
4th Floor, Vipul Plaza, Sun City, Sector-54,
Gurgaon 122002
India

17. 17
Corporate Presentation
Q&A

18. 18
Corporate Presentation
Summary - Q1’14 Financials
Unit
Q1 FY 2013-14 Q4 FY 2012-13 q-on-q%
Gross Production
Boepd
212,442
202,014
5
Q1 FY 2013-14
Factsheet
Revenue
INR bn
40.6
43.6
-7
• Average Price Realization:
EBITDA
INR bn
29.1
28.9
1
EBITDA Margin
%
71.6%
66.3%
530bps
• RJ Oil - US$ 94.3 / bbl
DD&A
INR bn
5.2
4.7
9
• RJ Oil Price Discount:
EBIT
INR bn
32
26.4
21
PBT
INR bn
31.9
26.2
22
• RJ Opex: US$ 3 / boe
PAT
INR bn
31.3
25.6
22
• Net Cash: US$ 3.16 Bn
EPS
INR/sh
16.4
13.4
22
Cash EPS
INR/sh
12.9
13.2
-2
CFFO
INR bn
24.4
26.7
-8
• CIL - US$ 93.3 / boe
8%
Profit petroleum pay-out to the government rose from 20% to 30% in the Development Area 1 (DA1) in the RJ block

19. 19
Corporate Presentation
Strong Stable Balance Sheet
Asset
US$ bn
Current Assets
Liability
US$ bn
Current Liabilities
Cash and Investments
2.9
Other Current Asset
Current Liabilities
0.7
0.6
Non Current Liabilities
Non Current Assets
Non Current Liabilities
Fixed Asset
2.5
Goodwill
2.8
MAT Credit
0.9
Other LT asset
0.5
0.1
Total
Shareholders Funds
Networth
9.9
8.8
Total
9.9
US$ INR: 54.39
ROCE (%)
25.3
ROE (%)
16.7
22.1
15.3
16.4
2.5
3.1
FY09
FY10
1.3
1.4
FY11
FY12
FY13
1.7
FY09
FY10
FY11
FY12
FY13