GAIL (India) Ltd.

India’s Youngest Maharatna

Investors’ & Analysts’ Meet

May 28, 2015
Mumbai

1
Safe Harbor Statement
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 information or facts
and may be "forward-looking statements", including those relating to the Company’s
general business plans and strategy, its future financial condition and growth prospects,
and future developments in its industry and its competitive and regulatory environment.
Actual results may differ materially from these forward-looking statements due to a
number of factors, including future changes or developments in the Company’s business,
its competitive environment, information technology and political, economic, legal and
social conditions in India.

This communication is for general information purposes only, without regard to specific
objectives, financial situations and needs of any particular person. Company do not accept
any liability whatsoever, direct or indirect, that may arise from 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 or changes

2
Table of Contents

1. Introduction 1
2. Performance Highlights 2
3. Industry outlook & Strategy 3

3
GAIL (India) Ltd.
India’s Youngest Maharatna

1. Introduction

4
An Introduction
• Over 11,000 Km of network
• Sophisticated Gas management System
Natural Gas • Pursuing for expansion, Participation in RGPPL ( 5
MMTPA LNG Regasification Facility)
• Long-term Import Portfolio: 24 MMTPA

• Domestic market share ~ 15%

• Petrochemical Plant in Pata( UP) with capacity of 0.4
Petrochemicals MMTPA (expanding to 0.81 MMTPA)
• Participation in BCPL & OPAL

Liquid • 6 Gas Processing Plants producing LPG, Propane,

Pentane, Naphtha etc.
Hydrocarbons • LPG Transport Capacity 3.8 MMTPA(2038 Km.)

Exploration • A part of vertical integration

• Participation in 15 blocks (operator-3 blocks)
& Production • Presence in Myanmar & US

Power • 118 MW Wind Power Plant and 5 MW Solar Power

Plant
& Renewables • Participation in RGPPL( Capacity 1967 MW)

5
Energized Performance
 First PSU to acquire shale gas
Birth of GAIL : NG Trans & Mktg. acreage in US  Achieved Maharatna Status
Company  Subsidiary in US  Commissioned Dabhol Terminal & Dabhol
 Signed Henry Hub linked LNG deal Bangalore Natural Gas Pipeline
August 16, 1984  Capacity Booking in Cove Point LNG Terminal
First Petrochemical Plant Today
at Pata May 28, 2015

1984 1987 1999 2001 2011 2012 2013 2014 2015

India’s first NG Pipeline-

HVJ-Commissioned  Gas supply secured in US for 2.3 MMTPA
 Signed GSPA for TAPI Pipeline  TAPI Pipeline Company Ltd. incorporated.
JLPL, World’s Longest, LPG  2200 Km Dahej-Vijaipur-  Signed MoU to implement Coal Gasification
transmission Pipeline Bhathinda pipeline dedicated to project.
Commissioned the Nation
 Became only company to be
included in BSE Greenex

Operates Contribute to Produces Responsible for Produces every Supplies gas for Supplies gas for
more than about about
3/4th 1/5th 1/4th 12th
of the total NG 1/2 of the of India’s total LPG Cylinder in 1/2 1/2
transmission in of the natural polyethylene LPG transmission India of India’s of India’s gas
India produced in India fertilizer produced based power
gas sold in India
As India’s youngest Maharatna, we have created a strong Foundation for Long-term growth.
6
Shareholding Structure

Top Shareholders other than GoI % Shareholding

Others, 7.28%
GDRs, 1.41% LIC 9.15 %
FIIs, 18.80%
ONGC 4.83 %

IOCL 2.41 %
IOC, 2.42% President of
LIC, India, 56.11% Matthews Pacific Tiger Fund 1.91 %
ONGC, 4.83% 9.15%
LIC P&GS Fund 1.41 %

Listed on BSE : 15th May 1997/ Share Price (52 Wk. High/Low):
Listed on NSE : 2nd April 1997 ` 551.35 (31st Oct’14) / ` 356.7 (8th May’14)
GDRs listed on LSE in 1999 Market Cap: ` 49325 Cr.

Number of Shares: 126.848 million FY 15 Dividend(Interim)/share: ` 3.00 per share

Source: BSE Website

Note: All data as on 31st March 2015 as per BSE website 7
GAIL (India) Ltd.
India’s Youngest Maharatna

2. Performance Highlights

8
Major Highlights of FY15

Sales Turnover - `56,569 Cr Profit After Tax - `3,039 Cr

Subsidy shared `1000 Cr towards under-recoveries of OMCs

Capitalization of Petrochemical Project in Mar’15 - `6842 Cr

Long Term Borrowing - `500 Cr (INR Bonds)

Loan Repayments - `1646 Cr incl. Prepayments of `900 Cr

Average Liquid Hydrocarbon(LHC) price realization for FY15 over `47,000/MT

Average Polymer price realization for FY15 over `1,00,000/MT

E&P Revenue from Myanmar (Net of Royalty & Govt. Share) `455 Cr

Profit on sale of asset – CGD business to Vadodara Gas Ltd. `63 Cr

9
Physical Performance
Gas Volume Trend
(MMSCMD)
Gas Transmission Mix Gas Marketing Mix
Gas Transmission Gas Marketing (in MMSCMD) (in MMSCMD)
118 118
105
96 92 9 7 -
83 84 5
81 79
72
FY15 46 20 FY15
33 46

APM/NAPM RLNG incl Sport & Mid Term PMT RIL

FY11 FY12 FY13 FY14 FY15

(TMT)
Petrochemicals Sales Liquid Hydrocarbons Sales LPG Transmission
3,362
3,337
448 1,441
445
441
1,373 1,371

427 3,136 3145

1307
1,277 3,093
420

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15
10
Gas Sourcing & Sector Wise Supply – FY15
(MMSCMD, % share)

20 MMSCMD
27%

1
73%

10 52 MMSCMD

21

1
13
5
9
5
2
2 3

Fertilisers Power CGD for CNG & Petrochemicals Gas Based LPG Others*
PNG

Domestic RLNG

 Imported Gas primarily consists of Long Term RLNG, Mid Term RLNG and Spot
 Major sources for domestic gas are ONGC( APM & Non APM), PMT at APM & PSC prices ,Ravva, Ravva satellite etc.
 Highest demand of Natural Gas from Power & Fertilizer companies

* Others include Steel, Refineries, Sponge Iron etc. 11

Financial Performance (Standalone)

Sales (net of ED, in ` Cr.) Gross Margin* (PBDIT, in ` Cr.)

7945
57245 56,569 7,234
47,333 5,973 6,247
5,620
40,281
32,459

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15

PBT* ( in ` Cr.) PAT ( in ` Cr.)

4375
6402 4,022
6,058 3,654
3,561
5,240 5,340
3,039
4,284

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15

* Incl. exceptional items 12

Segment-Wise Breakup – FY15
(` in Cr.) (%)
1%
9%

5053 746*
Turnover (Net of ED)

8%
4595 1%
3049 440
42686
5%

76%
` 56569 Cr

2%

16%
Profit before Tax

1932 105*

45%
140
242 28%
1180

685
` 4284 Cr
6%

3%

Liquid Unallocated incl.

Gas Marketing NG Transmission LPG Trans Petrochemicals Hydrocarbons E&P
13
* Incl. exceptional items
Major Variance in Profitability – FY14 vs. FY15

Negative Variances
• Increase in Gas & Power cost of Petrochemicals by ~ ` 1550 Cr
• Decrease in Average LHC Prices led to a negative impact of ~ ` 1130 Cr.
• Decrease in Profitability of Gas marketing Segment by ~ ` 910 Cr
• Impact of retrospective PNGRB Tariff Reversal in FY15 of ~ ` 440 Cr.
• Increase in E&P expenses including dry well expenses by ~ ` 200 Cr.
• Increase in Repair & Maintenance expenses due to preventive maintenance activities by
~ ` 140Cr
• Decrease in LHC Sales Quantity leading to a negative impact of ~ ` 170 Cr.
• Decrease in other income from Profit from Stake Sale in China Gas - ~ ` 340 Cr

Positive Variances
• Decrease in Gas & Power cost of Liquid Hydrocarbons by ~ ` 1230 Cr
• Decrease in LPG Subsidy by ` 900 Cr
• Increase in E&P revenues (Net of Govt. share & Royalty) by ~ ` 400 Cr
• Decrease in Depreciation by ~ ` 200 Cr
• Increase in Avg Polymer Price in FY15 Vs. FY14 leading to positive impact of ~ ` 90 Cr
• Profit on sale of CGD Business to Vadodara Gas Limited – ~ ` 60 Cr

14
Balance Sheet – 31.03.2015
(` in Cr.)

Share Capital Reserves & Surplus Borrowings* Deferred Tax Liab.

1268 27851 9556 3309

Capital Employed
41,984

Tangible Intangible Equity

CWIP Others
Assets Assets Investments
4360 5542
27016 744 4322

NG Pipelines incl. Comp. 24885 Linepipes & 2442 Working capital 2345
related facilities
Petrochemicals 10537 Non Current 3197
Petrochemicals 1249 assets less Non
LPG Pipeline 1754 Current Liab.
Exploratory & 461
LHC Plants 1705 Development Others 5542
E&P assets 1129 Well in Progress
Wind Power 774 Others 208
Others 605 CWIP 4363
Gross Block 41389
Less Acc Dep 13630
Net block 27759
* Includes Short term borrowings of ` 234 Cr 15
Financial Profile
Gross Block (in ` Cr.) Capital Employed ( in ` Cr.) Net Worth (in ` Cr.)

41,389 41,984
39,907
35,591 28,888
34,056 26,858
31,149 24,038
28,741
26,307 21,449
22,144 23,197 19,054

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15

Loans* ( in ` Cr.) Debt to Equity Ratio Debt Service Coverage Ratio (DSCR)

10268
9,556 20
9,064 0.38 0.38
0.33

0.25
5,347
9
7
0.12
2,310 4 3

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15

* Incl. Short Term Borrowings of ` 234 Cr.

16
Financial Performance on Consolidated basis
(` in Cr.)
Sales(net of ED) Gross Margin (PBDIT)
9235
8,314
61,644 60,515 7,762
7,055
50,893 6,577
44,058
35,107

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15

Profit before Tax Profit after Tax

6,922
6,355 6,558 4786
5,799 4,444 4,374
4,021
4,492 3,160

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15

17
Estimated Capex & Borrowings
(` in Cr.)
FY14-15 FY15-16
` 1633 Cr ` 2440 Cr
27, 2%
200,
145, 9% 8%
355, 22%

34, 2% 640, 26%

1300, 53%

1072, 65%
300, 13%

Pipeline Equity Contribution Petrochemical E&P Others

Estimated Borrowings during FY15-16 – ` 1000 Cr

18
 GAIL (India) Ltd.
India’s Youngest Maharatna

3. Industry Outlook & Strategy

19
Natural Gas
Source: Energy Outlook 2014 EXXON Mobil 2014

By 2040
2 Billion more people
on the planet

130 percent
larger global economy

about 35 percent
greater demand in energy

non-OECD countries
Like China & India will lead the growth in energy demand

about 60 percent
of demand supplied by Oil & Natural Gas

Natural Gas surpass Coal

as second largest fuel source 20
Incremental Growth in Energy & Natural Gas Demand
Incremental Energy Demand Outlook (MTOE) Projected India’s Sectoral
7,000 Demand of Natural Gas
15435 15847 16076 17196 17871 18314 18633
(MMSCMD)
6,000

5,000
2030

4,000

3,000 32
54
2,000
1,160 1,355 228
807 974
1,000 510 595 647 116

-
2010 2013 2015 2020 2025 2030 2035
OECD China US Europe European Union Former Soviet Union India
270

2022

25
28
2015 125
Fertilizer 51

Power 27
42
CGD 4 124
Petchem 16
28
Sponge Iron

SOURCE: BP Outlook 2035, February 2015/ Booz & Co Analysis for GAIL (India) Ltd 21
Diversified Gas Sourcing
Russia-Gazprom
2.5 MMTPA
US-Henry Hub 2019/20-2038/39

Cheniere & Dominion : 5.8

MMTPA Turkmenistan
2017/18-2036/37
38 MMSCMD(10.6 MMTPA)
Qatar 2019/20-2048/49
4.5 of 7.5 MMTPA
until 2027/28

Nigeria
Regas-Capacity
0.75 MMTPA 2013-15
2.5 MMTPA-Dahej
5.0 MMTPA- Dabhol

Portfolio Supplies Gorgon-GNF

0.42 of 1.44 MMTPA
0.24 MMTPA up to Dec’15 2016-2034

Long-Term Import Portfolio Diversification across Price Indices

Quantity-:- 23.8 MMTPA( ~85.6 MMSCMD) Henry Hub -:- 24.5% (5.8 MMTPA)
Diversified sourcing across geography: Russia, Japanese Crude Cocktail -:- 31% (7.42 MMTPA)
Middle-East, Australia, USA Oil -:- 44.5% (10.6 MMTPA)
Map Not to scale
22
Rising Petrochemical business

Shaping Growth of Petrochemicals in India*

 CAGR of growth in $40 billion Indian Petrochemicals industry ~ 14 %
 Indian Petrochemicals industry likely to reach $100 billion by 2020
 India’s per capita consumption of polymers ~ 5.2 kilograms vs. China per capita consumption of 30
kilograms.
 India’s consumption of polymers is about 6.2 million tons, which is only around 3 per cent of the global
consumption of 200 million tons
 Lion's share for making “Make in India” campaign a success has to come from Petrochemicals sector

GAIL’s Petrochemical Marketing Portfolio

Market Share ~30%
(TMT)

Market Share ~15%

400 Pata Expansion

530
Pata 1
FY18 BCPL
FY15
OPAL
410
280
410

*As per Study conducted by Assocham

23
Major Projects (On-going & Upcoming)
Vijaipur Auriya P/L** (VAPPL)

PATA PETCHEM EXPANSION Length-:- 672 Km,

Cost-:-Over `4500 Cr.
Cost-:-Over ` 8000 Cr. Cap-:- 8.9 MMSCMD
Cap-:- 0.4 MMTPA

JAGDISHPUR-HALDIA PIPELINE**
Length-:- 1850 Km,
Poly Butadiene Rubber Cost-:-Over `11000 Cr.
Cap-:- 16 MMSCMD
Cost-:-Over ` 2500 Cr.
Cap-:- 110 KTPA
JAGDISHPUR

DAHEJ &
GANDHAR GAYA
BCPL
Phenol-Acetone-Project* Cap-:- 0.28 MMTPA
HALDIA
of HDPE/LLDPE
Cost-:-Over ` 2000 Cr. SURAT and Polypropylene
Cap-:- 108 KTPA(Phenol)
PARADIP
& 67 KTA (Acetone)
SURAT-PARADIP PIPELINE**
Length-:- 1990 Km,
BANGLORE Cost-:-Over ` 10000 Cr.
ONGC Petro Additions Ltd. (OPAL) MANGLORE Cap-:- 75 MMSCMD
GAIL has 15.5% equity stakes(` 995 Cr.)
Cap-:- 1.1 MMTPA(Ethylene), 0.4 KANJIKKOD
MMTPA(Propylene) KOCHI
KOCHI-MANGALORE-BANGALORE (Ph.-II)
Length-:- 879 Km, Cost-:-Over ` 2900 Cr.
Map Not to scale
*Phenol-Acetone-Project, VAPPL is under consideration Cap-:- 16 MMSCMD
24
**To be commissioned in synchronization with anchor load customers
E&P: Vertical Integration

Net Sales & PBT (in ` Cr.)

Balanced Portfolio with Participation in 15 Blocks, GAIL is FY11 FY12 FY13 FY14 FY15
Operator in 3 on-land blocks. 663

244 193
41 81 78
Appraisal (2)
Development -98 -21
Exploration -203 -137
(1) Sales PBT
(8)

Production Crude Production1 (in ‘000 bbl.)

(4)
338 343 357
310
Gail share of Reserves as on Proved 251
Proved
31.03.2015 Developed 169 171 178
151
125
Crude Oil- India (Qty. in ‘000 bbl) 1,076 1,076
Natural Gas -Myanmar
207 192 FY11 FY12 FY13 FY14 FY15
(Qty. in in million MMBTU)
Natural Gas -India Total Crude Production GAIL's Share
72 -
(Qty. in in million MMBTU)
NG Production2 (in million MMBTU.)
Tripura Field Development Plan (FDP) submitted to DGH. 139

As per approved Declaration of Commerciality (DoC) Gas 42

4 12
in place is 1.2 TCF & Recoverable Reserves is 71 BCF.
FY11 FY12 FY13 FY14 FY15

1.GAIL’s share in crude production from CB-ONN-2001/1 block is 50% & from CB-ONN-2003/1 is 20%
Total NG Production GAIL's Share
2.GAIL’s Share in NG production from Myanmar A1 & A3 block is 8.5% each
25
Policy Reforms in Power & Fertilizer Sector

SCHEME FOR UTILISATION OF GAS BASED POWER GENERATION CAPACITY

• GAIL appointed as the e-bid RLNG operator and sole importer of LNG for supply of RLNG to the
Power Plants under this scheme.
• Scheme envisages sacrifices from Stakeholders - 50% transportation tariff, 75% Mktg Margin, 50%
re-gas charges, exemption on VAT/CST, service tax, etc. and support from Power System
Development Fund (PSDF).
• PSDF support reserved by GoI for 2015-16 and 2016-17 : ` 3500 Cr & ` 4000 Cr respectively.
• Additional gas volume expected to flow is ~ 10 MMSCMD (during Jun-Sep) and ~15 MMSCMD
(during Oct-May)

GAS POOLING FOR FERTILIZER SECTOR

 The scheme has been approved by CCEA on 31.03.15 and is likely to be notified shortly. GAIL has
been appointed as the Pool Operator.
 Based on the total gas requirement of Fertilizer Sector and current domestic/contracted RLNG
supplies, additional RLNG volume would be sourced on competitive basis.
 A pooled price considering the domestic gas and RLNG would be declared by the Pool Operator
 The difference between the pooled price and the weighted average delivered cost of each plant
shall either be paid-in by fertilizer customer to Pool Fund Account (PFA) or reimbursed from the
PFA

26
Way Forward & Action Taken

Way Forward Actions

Upstream
Upstream

• Long-term Import Portfolio: 24 MMTPA

• Thrust on global sourcing & acquisitions
(13.2 - LNG /Sea Route, 10 - Cross Border
• LNG from traditional sources & equity linked
pipeline / Land route)
LNG; Renewal of expiring sourcing contracts
• 75 no. of spot/mid-term cargos imported
• Sourcing through transnational pipelines
during 2011-15
• Domestic tie-ups with operators of NELP-
• 20% equity stake in Eagle Ford Shale from
blocks
Carrizo Oil & Gas

Midstream
Midstream

• Maintain leadership position in midstream • More than 2800 Km P/L added from FY11
sector (DVPL-II, BNPL, DBPL)
• Continue pipeline expansion • Dabhol LNG terminal commissioned as
• Set up LNG regasification terminals & book re- Owner’s Engineer
gas capacities • Additional re-gas capacity tie-up in Dahej &
• Unlock demand across customer segments Dabhol
• Focus on Last Mile Connectivity • International Trading desk set up at Singapore

• 0.81MMTPA Petchem from Pata &

Downstream
Downstream

• Become diversified hydrocarbon major

0.28MMTPA from BCPL by 2015
• Continue expansion of petrochem capacities
• 118 MW wind and 5 MW solar power plant set
• Petrochemical product optimization
up
• JVs / subsidiaries for CGD expansion to 40-60
• Upcoming projects : East Coast FSRU, PBR,
cities
Shipping, etc.
• Reduce carbon footprint – Create renewable
• Participation in PNGRB’s bidding rounds for
portfolio
CGD Network

27
GAIL (India) Ltd.
India’s Youngest Maharatna

Thank You

28
Our Touch Points

For Institutional Investors For Retail Investors

& Analysts

Shri R C Gupta, Shri N K Nagpal,

Executive Director (Finance & Accounts) Company Secretary
E-mail ID: [email protected] E-mail ID: [email protected]

GAIL (India) Ltd.

India’s Youngest Maharatna
16, Bhikaiji Cama Place, R.K. Puram, New Delhi-110066
www.gailonline.com
29