Cairn India Corporate Presentation November 2013 Citi (1)

8/13/2019 Cairn India Corporate Presentation November 2013 Citi (1)

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2CorporatePresentation

This material contains forward-looking statementsregardingCairn India and itsaffiliates, itscorporate plans, future

financial condition, future results of operations, future business plans and strategies. All such forward- looking

statementsarebasedonthemanagement'sassumptionsandbeliefsinthelightofinformationavailabletothematthis

time. These forward-looking statementsareby their naturesubject tosignificant risks anduncertainties; and actual

results,performanceandachievementsmaybemateriallydifferentfromthoseexpressedinsuchstatements.Factors

thatmaycauseactualresults,performanceorachievementstodifferfromexpectationsinclude,butarenotlimitedto,

regulatorychanges,futurelevelsofindustryproductsupply,demandandpricing,weatherandweatherrelatedimpacts,

wars and actsofterrorism,developmentand use oftechnology,actsofcompetitorsand otherchanges tobusiness

conditions.CairnIndiaundertakesnoobligationtoreviseanysuchforward-lookingstatementstoreflectanychangesin

CairnIndia'sexpectationswithregardtheretooranychangeincircumstancesoreventsafterthedatehereof.Unless

otherwisestatedthereservesandresourcenumberswithinthisdocumentrepresenttheviewsofCairnIndiaanddonotrepresenttheviewsofanyotherparty,includingtheGovernmentofIndia,theDirectorateGeneralofHydrocarbonsor

anyofCairnIndiasjointventurepartner.

Alldatapointsinthepresentationrefertostatusason30September,2013,unlessotherwisespecified.

Disclaimer


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airns Strategic Pillars WorldClassResourceBase

OperationalExcellence

RobustFinancialPerformance

ActiveExplorationledGrowthStrategy A Top 20 GlobalIndependent E&PcompanyMarket Cap - ~US 10bn


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Asset Locations & Share of Production

Balancedportfolio,9blockswithnetacreageinexcessof42,000sq.kms SuccessfultrackrecordacrossExploration,DevelopmentandProductioncycle

Asset Basin Exploration Development/Production Gross 2PHIIP1Gross 2PReserves andResources2

Domestic AssetsRJ-ON-90/1 Barmer 4,198 1,0853

CB/OS-2 Cambay 209 20

Ravva KGOffshore 681 50

KG-ONN-2003/1 KGOnshore 480 74

KG-OSN-2009/3 KGOffshore

MB-DWN-2009/1MumbaiOffshore

PR-OSN-2004/1Palar

Pennar

International AssetsSL-2007-01-001 Mannar 73 56

Block1 Orange

Total 5,641 1,287

Assets Across the Life-Cycle of a Field (mmboe)Asat31stMarch,2013

World Class Resource Base

PR-OSN-2004/135%

Producingassets

KG-ONN-2003/149%

KG-OSN-2009/3100%

CB/OS-240%

RJ-ON-90/170%

RAVVA22.5%

SL-2007-01-001100%

MB-DWN-2009/1100%

Name of AssetParticipating Interest (%)

INDIA

SOUTHAFRICABLOCK160%

1HIIP: Hydrocarbons Initially in Place; 2 ReserveandResourceestimatesbasedontheSPE(SocietyofPetroleumEngineers)guidelines3IncludesRajasthanMBAEORpotentialandexcludestheproductiontilldate


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VolumeGrowth

Richresourcebasewithhigherliquidinproductmix Cumulativeproductionof~540mmboetill30thSeptember2013 Currentlyaccountsfor>25%ofIndiasoilproduction* Strongpartnershipswithstateandprivatecompanies

*Source:MinistryofPetroleumandNaturalGas

Sustained Year-on-Year Growth

95%

5%

Oil Gas

ProductMixbyVolume

17% CAGR

1HFY14

213

FY13

205

FY12

173

FY11

149

CairnIndiasAverageProduction(kboepd)

OntrackforFY14exitproductionof>225kboepd

2yearCAGR


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Operational Excellence Across the Value Chain SafetyfirstTopquartileHSEperformance

Opened4frontierbasinswith>40discoveries

Excellenceinexecution-discoverytoproduction

Onshoreoilproduction-In4yearsinRajasthan

Offshorenaturalgasproduction-In28monthsinCambay

Leveragingtechnologytoreducetotalcostof

ownership

Skineffectheatingsystemworldslongest

continuouslyheatedpipeline

Modularwellpadconceptrapidmovingrigs

Uptime>98%withalowfielddirectopex


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Efficient Project Management - Onshore and Offshore

Cambay: Gas Producing to Oil Producing

010203040

506070

Ravva: Sustaining mature asset

Rajasthan: World class asset with strong growth

0

5

10

15

20

25

OilProduction(kbopd) GasBOE(kboepd)

15

101128

169

0

50

100

150

200

Rajasthan Block

9


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~20%

~15%~25%

~40%

RJ

AdditionalProduction(BH+Satellitefields)

RJExploration

RJProductionSustenance(MBA+EOR+Infilldrilling)

OtherAssets

Exploration(45%)

Development(55%)

Note:CapexexcludesspendonnewexplorationdiscoveriesandIn-organicopportunities

Significant Potential in Rajasthan (RJ) Block : ~80% of the Planned Capex(Mmboe)

Active Capex Program for Growth - 3 billion net over 3 years

GrossEUR

1,7641,069

165530

GrossinPlace

7,2972,272 1,925 3,100

CurrentlyUnderDevelopment/Production

RJExplorationBH+19discMBARS

FutureDevelopment&ProspectiveResources

Aggressive Exploration & Appraisal program underway to prove up reserves RJ:Todrillouthalfof530mmboeprospectiveresourcesbyFY14 KG-ONN:Seekingtocommercializeonshorediscovery Ravva:Pursuinghighriskhighreturnexplorationwell SriLanka:6monthextensionforcurrentexplorationphasereceived SouthAfrica:3DSeismicinterpretationon-going;3,000lkm2Dseismic

planned

Focus to increase production primarily in Rajasthan Block IncreasingultimateoilrecoveryandsustainingproductionthroughEOR*

projectandin-fillwells DevelopmentfocusonlowpermeabilityreservoirswithinBarmerHill

*Subject to approvals

10C P i


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PolymerFlood-ImprovedSweepEfficiency

AlkalineSurfactantPolymerFlood-ImprovedDisplacementEfficiency

ArealSweepimprovement VerticalSweepimprovement

OriginalOil

Initial AfterWaterflood AfterASPflood

SandGrain

Remainingoil Water

Sustaining production by Improving Ultimate Recovery:~ 1,200Mn TosustaintheMBAplateauviaEORtechnologyandInfilldrilling

OilSaturationDisplayatPoreLevel-ReductioninTrappedOil

EnhancedOilRecoveryPilotPerformance

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Additional Producing Fields (BH + Satellite): ~ 450Mn Monetizing2bnboecontingentresourcebase

Barmer Hill formation spread over a large area in the basin OilandgasfoundinmajorityofthewellspenetratingBHformation

Lowpermeabilitytightreservoirs

Infrastructureisalreadyinplaceforquickmonetization

Useofstate-of-the-arttechnologieslikefracturestimulation,

horizontalwellcompletionforfieldmonetization

Data analogs indicate recovery factors in BH of 7 to 20%Development plan for BH, NI & NE submitted Technicalalignmentinplacewithpartner

ProductionexpectedinFY14,subjecttoapprovals

Fast track preparation for Development plans of other discoveries



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Exploration in Rajasthan: ~ 750Mn Topursuehigh-valueexplorationopportunities

A target-rich environment ~100Prospects;20PlayTypes,3.1bnboeinplace ProspectiveResources:530mmboeGrossRiskedRecoverableTwo-pronged strategy Provenplayextensions

Drillprospectswithlargestriskedvolumesfirst Revise/re-prioritiseremainingprospectsbasedonresults

Unprovenplays De-risktheplaydrillthelowestriskprospectfirst Revise/re-prioritizetestedplaybasedonresults

Exploration program Plantodrill~100E&AwellstillFY16;increaserigcountto5byendFY14

4ofthe6wellsdrilledfoundhydrocarbons

26thDiscovery,RaagS-1,testedatflowrateof450bbls/day;DeclarationofPotentialCommercialityfiled

Drillouthalfof530mmboeprospectiveresourcesinFY14

Acquire~1,900sqkmofadditional3Dseismicdatatoassistinextendingprovenplays&de-riskingprospects



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Major Undrilled Play Types in Rajasthan



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Ensuring Growth in Other Assets: ~ 600MnPortfolio diversity across India

Raava:HighValueHighRiskprospecttobedrilledinH2FY13-

14

KG-ONN-2003/1:3xincreaseintheproductivityoffirstappraisalwell;DoCtobesubmittedinthisFY

KG-OSN-2009/3:ApprovalssecuredforreductioninMinimumWorkProgram;planningandtenderingfor3Dseismicdataacquisitionunderway

MB-DWN-2009/1:Conditionalapprovaltocarryoutexploration

activityreceived PR-OSN-2004/1:Significantprogresstowardsresumptionof

explorationactivity

Growing international exposure SuccessfulexplorationinSriLankatwogasdiscoveries;

commercialoptionsunderreview;6monthextensionsecuredforcurrentexplorationphaseuptoApr14

3DseismicgatheredinS.AfricaBlock1;interpretationunderway;acquisitionof2Dseismicplannedin2014

Agrowth-focusednewventuresstrategyaimedatcapturingbest-fitinternationalopportunities

SOUTHAFRICA

ORANGE

INDIARAJASTHAN

MUMBAIRAAVAKG ON/OFFSHORE

PALAR/PENNAR

MANNAR

BASINS(Established & Emerging)

KG:KrishnaGodavariMB:MumbaiBasinPR:PalarBasin



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Outlook

*Subject to approvals

Aggressive Exploration & Appraisal program underway

Todrillouthalfof530mmboeprospectiveresourcesinRajasthan

Pursuing high risk high return exploration well in Ravva

SeekingtocommercialiseKG-ONNOnshorediscovery

On track for FY14 exit production target of over 225 kboepd IncreasingultimateoilrecoveryandsustainingproductionthroughEOR*projectandin-fillwells

DevelopmentfocusonlowpermeabilityreservoirswithinBarmerHill

Robust financials to fund Ongoing3year$3bnnetcapexprogram

Developmentcostsbasedonexplorationsuccess

Inorganicgrowthinitiatives

Ramping up the Rig count to 13, by the end of FY14 for exploration and development activity



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p

Appendix



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ValueProposition

As Indias largest private sector E&P companyaccounting for 25% of the countrys energyproduction, Cairn India is well positioned to growrevenuesandprofits.Itsstrongtrackrecord,lowcost

of operations,high cashflow generation,combinedwiththeworld'sgrowingdemandforenergy,providesconfidence for future growth in reserves andproductionwhilemeetingitsreturnoncapitaltargets.

TopManagement

Chairman: NavinAgarwal CEO: P.Elango CFO: SudhirMathur

FY13Production Gross Production: 205,323bopd Oil: 195,780bopd Gas: 57mmscfd

Countriespresent India SriLanka SouthAfrica

Reserve Base Gross2PHydrocarbonsInitiallyinPlace(mmboe):5,641 Gross2PReserves&Resources(mmboe):1,287 NetWorkingInterest2PReserves&Resources(mmboe):871

ProducingAssets -CumulativeProduction (tillFY13)

Rajasthan(RJ-ON-90/1)-~149mmboe AndhraPradesh-Ravva(PKGM-1)-~300mmboe Gujarat-Cambay(CB/OS-2)-~50mmboe

Capital Budget $3billionoverthreeyears(FY2014,2015,2016) 55%forProduction;45%inExploration

CumulativeCapex (tillFY13) GrossDevelopment-~US$4.8bn GrossExploration-~US$1bn

Achievements TogetherwithitsJVpartnersaccountsfor~25percentofIndiascrudeoil

production Amongthetop20globalindependentE&Pcompanies Builtworldslongest(~600kms)continuouslyheatedandinsulatedpipeline

Awards FastestgrowingenergycompanyintheworldatPlattsTop250EnergyCompany

Awards2013 GoldenPeacockAwardforExcellenceinCorporateGovernance,2012

FinancialStrength

FY 2013P&L Revenues:US$3.2billion

PAT:US$2.1billion

CashFlowfromOperations:US$2billionBalance Sheet Cash:US$3.1billion

Assets:US$9.9billion

ZeroDebtCompanyOther Ratios EPS:INR63.2

DividendYield:4%

DPS:INR11.5

BVPS:INR250

Stock Market

Market Cap: ~$10billion Listed on:NSE,BSE Index Representation -Nifty50andMSCI Symbols: CAIRN(NSE);532792(BSE);INE910H01017(ISIN);CAIR(Bloomberg)

Shares outstanding: 1910million Shareholding Pattern:

VedantaGroup:59%

CairnPLC:10%

InstitutionalHolding:28%

Retail:3%

Contact InformationNidhiAggarwalM:[email protected]@cairnindia.com

CairnIndiaLtd.

4thFloor,VipulPlaza,SunCity,Sector-54,Gurgaon122002

India

Fact Sheet

mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Asset US bn Liability US bnCurrent Assets Current LiabilitiesCashandInvestments 2.9 CurrentLiabilities 0.6

OtherCurrentAsset 0.7 Non Current LiabilitiesNon Current Assets NonCurrentLiabilities 0.5FixedAsset 2.5 Shareholders FundsGoodwill 2.8 NetWorth 8.8

MATCredit 0.9OtherLTasset 0.1

Total 9.9 Total 9.9

Strong Stable Balance Sheet FY 13

2.5 3.1 1.4

16.4

25.3

FY09 FY10 FY11 FY12 FY13

ROE(%)

1.3 1.7

16.715.3

22.1

FY09 FY10 FY11 FY12 FY13

ROCE(%)

USD/INR54.39



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Financial Summary H1 FY14

Profitpetroleumpay-outtothegovernmentrosefrom20%to30%intheDevelopmentArea1inRJblockinFY14

Unit H1 FY14 H1 FY13 y-o-y%Revenue (Net) INR bn 87.1 88.8 (2%)EBITDA INRbn 66.7 68.6 (3%)

EBITDAMargin % 76.5% 77.2%

DD&A INRbn (10.7) (8.9)

NetOtherIncome INRbn 10.6 3.8

Tax INRbn (1.4) (2.0)

PAT INR bn 65.1 61.5 6%EPS INR/sh 34.1 32.2 6%

CashEPS INR/sh 29.5 30.6 (4%)

CFFO INR bn 53.1 56.3 (6%) StronggrowthinRevenueandProfits,generatehighCFFO

NetCashinhandUS$3.2billion

H1FY14grosscapexUS$285Mn

InterimdividendofINR6perEquityshare

Growthdrivenbyincreaseinvolumes,realizations&currency

Price Realization AverageOilPriceRealization:US$95.7/bbl

AverageRJOilPriceRealization:US$95.1/bbl

RJOilPriceDiscounttoBrent:10.5%

TotalForexgain-US$188million

Documents

Cairn India Corporate Presentation November 2013 Citi (1)