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  • 8/9/2019 GAIL Investor Presentation Nov09

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    This presentation has been prepared by GAIL (India) Ltd (Company or GAIL)solely for providing information about the Company.

    The information contained in this presentation is only current as of its date. Certain

    statements made in this presentation may not be based on historical informationor facts and may be "forward-looking statements", including those relating to theCompanys general business plans and strategy, its future financial condition andgrowth prospects, and future developments in its industry and its competitive andregulatory environment. Actual results may differ materially from these forward-

    looking statements due to a number of factors, including future changes ordevelopments in the Companys business, its competitive environment,information technology and political, economic, legal and social conditions inIndia.

    This communication is for general information purposes only, without regard tospecific objectives, financial situations and needs of any particular person.Company do not accept any liability whatsoever, direct or indirect, that may arisefrom the use of the information herein.

    The Company may alter, modify or otherwise change in any manner the content of

    this presentation, without obligation to notify any person of such revision orchanges.

    Safe Harbor Statement

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    GAIL Management

    Sh B C TripathiChairman & Managing Director

    Sh R K GoelDirector (Fin)

    Sh R D GoyalDirector (Proj)

    Sh S L RainaDirector (HR)

    Functional Directors

    Sh Sundareshan Sh Apurva

    ChandraDr. Vinayshil

    GautamDr. U K Sen Sh R M Sethi

    Government Nominee / Independent Directors

    Prof. A.Q.

    Contractor

    Sh Mahesh

    Shah

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    Quick Facts

    Indias Premier Integrated Natural Gas

    Company since 1984

    Years of Experience & Expertise in Gas P/L25+Baa2/A3 Moodys Foreign/Domestic Rating

    ICRA & CRISIL for Bond IssueAAAGoI Stake57%+10 Years Turnover CAGR15%+10 Years PAT CAGR10%+Manpower Asset3500+

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    Quick Facts

    Indias Premier Integrated Natural Gas

    Company since 1984

    Gas Transmission Cap150 MMSCMD+1.3+ MMTLHC Production Capacity

    Polymer Production Capacity410+ TMTE&P/CBM Blocks30

    : 100% Subsidiary2Presence in Countries4

    : JVs/Associate Companies12

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    Shareholding Pattern

    Government of India (GoI)is GAILs controlling shareholder

    The administrative ministry for the purpose of the company is the Ministry ofPetroleum & Natural Gas, GoI

    GoI has no plans to reduce its shareholding in GAIL to below 51%.

    President of India 57.34%

    ONGC 4.83%

    IOC 2.42%

    Life Insurance Corporation 5.42%

    LIC of India Money Plus 1.79%

    TOTAL 71.80%57.34

    5.01

    7.24

    12.13

    13.79

    3.411.43

    GoI M F/UTI/FI/Ba nk CG/SG Insura nc e FII GDR Other s

    Shareholding PatternShareholding Pattern

    as on 30.09.09as on 30.09.09Shareholders >1% + shareShareholders >1% + share

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    Financial Overview

    10000

    12000

    14000

    16000

    18000

    20000

    22000

    24000

    26000

    Turnover CAGR of 15%

    1750

    2000

    2250

    2500

    2750

    PAT CAGR of 10%

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    Business Portfolio

    NG Transmission

    E&P

    Petrochemicals

    NG Trading

    Retail

    Liquid Hydrocarbons

    GAILTEL Diversification

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    1,266

    1,469

    H1 08-09 H1 09-10

    Segmental Physical Performance H1 FY 2009-10

    Gas Transmission

    83.08

    101.66

    H1 08-09 H1 09-10

    MMSCMD

    22%

    Gas Trading

    79.43 80.50

    H1 08-09 H1 09-10

    MMSCMD

    16%

    LPG Transmission

    000 MT

    Petrochemicals

    179 180

    H1 08-09 H1 09-10

    000 MT

    1%

    Liquid HC

    552

    547

    H1 08-09 H1 09-10

    000 MT

    (1%)

    OLHC

    155

    166

    H1 08-09 H1 09-10

    000 MT

    7%

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    Financial Performance H1 FY 2009-10

    (Rs in Crores)

    Sales (Net of ED)

    11,860 12,224

    7,500

    8,750

    10,000

    11,250

    12,500

    H1 08-09 H1 09-10

    3%

    Gross Margin (EBITDA)

    3,175

    2,332

    2,000

    2,250

    2,500

    2,750

    3,000

    3,250

    H1 08-09 H1 09-10

    (27%)

    PBT

    2,855

    2,014

    1,500

    1,750

    2,000

    2,250

    2,500

    2,750

    3,000

    H1 08-09 H1 09-10

    (29%)

    PAT

    1,920

    1,369

    1,000

    1,250

    1,500

    1,750

    2,000

    2,250

    H1 08-09 H1 09-10

    (29%)

    LPG Subsidy in H1 FY 09-10: Rs.533 Cr (Rs.876 Crs. in H1 FY 08-09)

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    Gas Transmission Segment

    1,093

    1,443

    H1 08-09 H1 09-10

    935

    1,266

    H1 08-09 H1 09-10

    Turnover

    32%

    EBITDA

    35%

    (Rs in Cr)

    Core Business NG Trans Cap ~ 150 MMSCMD (7000 KM)

    12%

    53%

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    Gas Trading Segment

    7,267

    8,109

    H1 08-09 H1 09-10

    208217

    H1 08-09 H1 09-10

    Turnover

    12%

    EBITDA

    4%

    (Rs in Cr)

    Core Business Earning of Marketing Margin by Natural Gas Trading

    66%

    9%

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    LPG Transmission Segment

    131

    162

    H1 08-09 H1 09-10

    Turnover

    EBITDA

    24%

    (Rs in Cr)

    Core Business LPG Trans Cap ~ 3.6 MMTPA (1900 KM)

    2%

    7%

    175

    208

    H1 08-09 H1 09-10

    19%

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    Petrochemical Segment

    1,413

    1,234

    H1 08-09 H1 09-10

    836

    620

    H1 08-09 H1 09-10

    Turnover

    (13%)

    EBITDA

    (26%)

    (Rs in Cr)

    Only Plant in North India Polymer Capacity ~ 410 KTPA

    Drop in Turnover & EBITDA due to lower Product Prices

    10%

    26%

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    Liquid Hydrocarbon Segment

    1,864

    1,199

    H1 08-09 H1 09-10

    929

    121

    H1 08-09 H1 09-10

    Turnover

    (36%)

    EBITDA

    (87%)

    (Rs in Cr)

    10%

    5%

    7 Plants across India Liquid Hydrocarbon Capacity ~ 1.3 MMTPA

    Drop in Turnover & EBITDA due to lower Product Prices

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    Corporate Mission & Vision

    VISIONVISION

    Be the leading company in natural gasBe the leading company in natural gas

    and beyond with global focus,and beyond with global focus,committed to customer care, valuecommitted to customer care, value

    creation for all stakeholders andcreation for all stakeholders and

    environment responsibilityenvironment responsibility

    MISSIONMISSION

    To accelerate and optimise the effectiveTo accelerate and optimise the effective

    and economic use of Natural Gas andand economic use of Natural Gas and

    its fractions to the benefit of theits fractions to the benefit of the

    national economynational economy

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    GAIL Strategy Implementation

    City Gas,Power, Telecom

    Gas Processing

    Petrochemicals

    Marketing,Trans., Cross

    Country P/L

    E&P

    LNG Import

    Domestic

    Source

    Move

    U

    pstream

    Core

    B

    usiness

    Diversifica

    tion

    Inte

    rnationalOp

    portunity

    Upstream

    Trans-

    mission

    MidStream

    Retail&

    d

    iversify

    1

    2

    3

    4

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    Gas Demand Supply Assessment

    (In MMSCMD)

    Sector wise Gas Demand Projection

    280226Total

    87Sponge iron/Steel

    3329Petrochemicals/Refineries/InternalConsumption

    2017Industrial

    1614City Gas / CNG

    7656Fertilizer

    127103Power

    2011-122009-10SectorSource wise Gas Supply Projection

    191168Total Gas Supply (A+B+C)

    8353Total LNG Supply (C)

    108115Projected Domestic Supply

    (A+B)

    5760Pvt./ JVs (As Per DGH) (B)

    5155ONGC+OIL (A)

    11-122009-10Sources

    Source: As per working Group Report for XIth Plan of Planning Commission (November 2006)

    Large Demand Supply Gap - Opportunity for Growth.

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    GAIL Existing Infrastructure

    GAS PIPELINES

    7200 KMS

    (150 MMSCMD)

    GAND

    HARVAGHODIA

    USAR

    VIJAIPUR

    LAKWA

    TRIPURA

    KG BASIN

    VSPL

    CAUVERYBASIN

    HVJ,DVP

    L

    JLPL

    RAJASTHAN

    NATURAL GAS PIPELINE

    LPG PIPELINE

    PATA

    PETROCHEM PLANT

    LPG PLANT

    LPG PIPELINES

    1900 KMS

    (3.6 MMTPA)

    GAS PROCESSING

    7 Plants

    (1.3 MMTPA LPG)

    PETROCHEMICALS

    410,000 TPA

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    GAIL Capacity Built-up

    72207663

    9272

    11132

    13825

    6000

    7000

    8000

    9000

    10000

    11000

    12000

    13000

    14000

    15000

    Existing

    Length

    2009-10 2010-11 2011-12 2012-13

    12524Mumbai

    7220142TOTAL

    206949Others

    79312DUPL/DPPL

    HVJ/DVPL

    P/L

    57

    Cap

    4233

    Lnth

    (Existing Network)

    610---78610---DVPL-II

    501----59531--Dadri Baw. Nangal

    1389138916------Dabhol Bangalore

    1114111416------Kochi-Mang/ Bangalore

    1860

    1860

    -

    -

    Length

    16

    35

    40

    Cap.

    2011-12

    2693

    190

    -

    -

    Length

    16

    -

    -

    Cap.

    2012-13 Total

    66051609443TOTAL

    2009-10 2010-11

    Additional Infrastructure as per approved schedule

    2050----Jagdishpur Haldia

    443--44312Chain. Jhajjar

    -

    Length

    -

    Cap.

    VDPL

    Pipelines

    498

    Length

    40

    Cap.

    498

    Length

    (Length in KM)

    (Length in KM)/(Capacity in MMSCMD)

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    Projected Capex Rs.49155 Cr

    0

    2,500

    5,000

    7,500

    10,000

    12,500

    15,000

    17,500

    2009-10 2010-11 2011-12 2012-13 2013-14

    Pipeline E&P Others

    5687

    7639

    16385

    % share of Capex

    70%

    10%

    20%

    GAIL has a history of Excellent Project Management :

    to execute the Project within given time frame and without cost over run

    14864

    4580

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    Projected Borrowings Rs.28700 Cr

    1,200

    4,500

    12,500

    10500

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    2009-10 2010-11 2011-12 2012-13

    Aggressive Capex Plan calls for Borrowings

    Leverage on GAILs current very low debt Equity ratio (0.08:1)

    40%

    32%4%

    3%

    21%

    INR Bonds Term Loan OIDB

    ECA FC Loan

    Borrowing Portfolio

    76%

    24%

    INR Loan FC Loan

    Borrowing Portfolio (INR Vs FC)

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    E&P Activities - Secure Future GasSupplies

    Total Blocks - 30 Onshore Blocks - 9

    Offshore Blocks - Deep 13 & Shallow - 5 CBM Blocks - 3 (Under coring)

    Major Operators - ONGC, GSPC, OIL,GSPC, Oilex, Daweoo,Pertogas, Hardy, Eni,Jubilent, Arrow Energy

    Net investment - Rs.1828 Cr (upto 30.06.09)

    HC Discoveries - Made in 8 Blocks :Cambay onland, A1& A3blocks (Myanmar),Cauvery offshore &onland, Mahanandioffshore, Ankleshwaronland, Block 56 (Oman)

    Operating 2 onland blocks RJ-ONN-2004/1(NELPVI) & CY-ONN- 2005/1 (NELP VII)

    Commercial Block - Crude oil from Cambay

    Basin

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    GAILs Future

    Emerging as a Strong NG Trans Companywith diversified portfolio

    No ofCities

    Nos.

    MMT

    MMSCMD

    KM

    Unit

    ~14000~7000NG Trans Pipeline

    ~5015Retail Gas Presence

    3

    (5 in FY 13-14)

    1E&P RevenueGenerating Blocks

    ~8~4Polymer Capacity(incl BCPL)

    ~300~150NG Trans Capacity

    FY 2012-13FY 2008-09

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    Immediate Growth Drivers from FY 09-10onwards

    Additional Gas availability:

    RIL KG Basin gas from Q1 09-10 onwards

    PLL - RLNG from Q4 09-10 onwards

    Dabhol RLNG from Q4 09-10 onwards

    ONGC Natural Gas Supply from marginal fields

    FOCUS ENERGY Natural Gas Supply from Rajasthan field

    Spot LNG ongoing basis

    Enhanced Pata Petrochemical Production from Q1 of FY 10-11onwards

    Upside in Polymer Product Prices

    Lower Subsidy expected as compared to FY 08-09 due tosoftening of Crude oil prices

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    Most Recent Laurels

    Oil Industry Safety Award - 1st rank under Other Processing Plant category

    Dahej-Panvel-Dabhol pipeline project awarded 3rd position in IPMA projectexcellence award 2009

    Oil and Gas Transportation Company for the year 2007-08 by Petrofed

    Safety Innovation Award 2008 for excellence in innovative safety measures

    Ranked 2nd among gas utilities in Asia in the Platts Global Ranking of EnergyCompanies.

    Top Indian company in the Gas-Processing, Distribution and Marketing Sectorfor the Dun & Bradstreet Corporate Rolta Corporate Awards 2008.

    Most Diversified PSU in the country from Dalal Street Investment Journal.

    Ranked among the Forbes 2000 companies.

    Amity Award for excellence in Human Resources.

    National Award for Excellence in Cost Management from The Institute of Costand Works Accountants of India (ICWAI)

    International Safety award from British Safety Council

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    Conclusion

    Dominant Position - Transmission

    Large Capex Plans in Place

    Relatively New Asset

    Strong Gas Demand

    Strong Financials

    Strong GoI Support

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    Thank You