Mahanagar Gas Ltd · NSE:MGL
Mahanagar Gas — Non-Deal Roadshow (January 2018)
44 slides from Mahanagar Gas's roadshow presentation, Jan 12, 2018
Slide 1: Intimation of Schedule of Analyst/Institutional Investor Meetings
MAHANAGAR GAS LIMITED MAHANAGAR (GAIL, Govt. of Maharashtra & BGAPH Enterprise) GAS Ref: MGL/CS/SE/2018/123 Date: January 12, 2018 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Ltd P. J. Towers, Exchange Plaza, Bandra —Kurla
Slide 2: Continuation Sheet
CONTINUATION SHEET MAHANAGAR GAS GMO Singapore Pte Ltd One to One Singapore Balyasny Asset Management Singapore Limited One to One Somerset Capital One to One January 16, Eastspring Investments (Singapore) Limited One to One Singapore 2018 | UBS Asset Management (Singapore) Ltd One to One SembCorp O
Slide 3: Continuation Sheet
CONTINUATION SHEET MAHANAGAR GAS We would like to inform you that presentation being made to the Analyst / Investors at the conference is available under Investor section on the website of the Company and enclosed herewith. You are requested to take the above information on your records and dissemin
Slide 4: Presentation to Investors
PRESENTATION TO INVESTORS MAHANAGAR GAS
Slide 5: MGL: An Introduction
MGL: An Introduction
Slide 6: One of the largest CGD Companies in India
One of the largest CGD Companies in India Attractive Sole authorized distributor of CNG and PNG in Mumbai, its Adjoining Areas and Raigad GAS Market with more than 22 year track record in Mumbai ‘) $$ \ y, ( \ Low-Cost Gas Cost-effective availability of domestic natural gas with sourcing flexibility
Slide 7: PE – 3,800 km Net Worth – Net Worth –
200th CNG dispensing station Listing on NSE and BSE New GA Raigad 110% allocation of domestic Net Worth – Pipeline PE – 3,800 km gas INR billion 18.4 & Steel - 380 km 3rd CGS at Taloja & 150th CNG 4th CGS at dispensing Ambernath 2nd CGS at station Pipeline Mahape PE - 2,500 km & Natural gas Steel -
Slide 8: Areas of Operation
Areas of Operation Business Operations Bhiwandi Mira-Bhayander Dombivily Ambernath Mumbai Thane District Navi Mumba T Wadala Kharghar Karjat anvel Uran Khalapur Pen Alibaug. Raj aigad Arabian Sea 3 Floha Tala © Mangaon Mahad Shrivardhan Poladpur Areas of Mumbai & Greater Mumbai Operation Mira-Bhayan
Slide 9: MGL: Strong Fundamentals
MGL : Strong Fundamentals
Slide 10: The MGL Proposition
The MGL Proposition ® MAHANAGAR GAS Significant Growth Potential Backed by Favorable Industry Conditions Underpenetrated Market with Significant Potential for a Expansion MAHANAGAR GAS © Robust Infrastructure in Place to Support Future Growth © Favorable Regulatory environment © Cost Effective Sourc
Slide 11: Natural Gas and CGD: Attractive Industry
Market Natural Gas and CGD :Attractive Industry @ Industry Overview MAMANAGAR * India was the third-largest energy consumer in the world after China and US in 2016 * — India’s primary energy consumption has more than doubled between 2000 and 2016, reaching ~724 MToe * India’s per capita energy consu
Slide 12: • 3188 3552 3916 4645 • 3022 3022 3022 3022 5% 15% 23% 35%
• 3188 3552 3916 4645 • 3022 3022 3022 3022 5% 15% 23% 35% •
Slide 13: CNG Vehicle and Households, Restaurants, Industrial & Commercial
CNG Vehicle and House holds Restaurants Mn Nos. Nos. 5 35% 40% 32% 10000 4 30% 3 32.5% penetration 3 1.8 20% In Mn. 2 1.05 10% 1 0.58 0 0% 3250 CNG Domestic PNG Market Size (Mn) Penetration (Mn.) % Penetration Market Size (Nos.) Penetration (Nos.) Industrial & Bulk Commercial Nos. & volu e i ‘000 SC
Slide 14: Diversified Sourcing Strategy
Diversified Sourcing Strategy CNG & Domestic PNG Industrial / Commercial PNG Vv Vv M7 Non-APM Term Non-APM Source (CNG + Dom, PNG) RLNG Hpealdile e BGIES e GSPCL e Hazira LNG e HPCL e PLL e IOCL ntl ° SEMTIPL e Domestic supply agreement - MoPNG ¢ Purchase of imported RLNG for industrial/ allocates g
Slide 15: Priority Segment Offtake and Sales Volume
73.61% • • 12.32% • 6.47% 7.60% CNG Sales Domestic PNG Commercial PNG Industrial PNG Sales Sales Sales 114 % 102 % 2.57 102% 2.5 98% 2.25 96 % 2.13 2.03 1.9 2.26 2 2.2 0.45 0.43 2.08 0.36 0.38 0.38 1.99 1.83 1.5 FY14 FY15 FY16 FY17 FY18 (Till FY14 FY15 FY16 FY17 FY18 (Till Sept.) Sept.) Priority Seg
Slide 16: Infrastructure in place
Infrastructure in place * Infrastructure Exclusivity ¥ Mumbai: Up to 2020 Y Adjoining Areas: Up to 2 ¥ Raigad: Up to 2040 * Tariff Flexibility v New operator can use MGL’s pipeline network only on payment of transportation tariff MGL has established a widespread network and plans for expansion to en
Slide 17: Regulatory Environment Creating Strong Barriers to Entry
Regulatory Environment Creating Strong Barriers to Entry ant@® Incumbent Advantage Authorization Exclusivity Gas Allocation Price Determination Accelerated Bidding Authorization to lay, build, operate or expand a CGD network Infrastructure exclusivity in Mumbai and certain Adjoining Areas, and marke
Slide 18: MGL Growth Strategy
MGL Growth Strategy Seek Growth Opportunities 4 Continue Cost- Effective and Reliable Sourcing Arrangement A * Monitor cost of natural gas and endeavor to source natural gas in PNGRB’s bidding the most cost effective rounds could be manner opportunity for MGL's expansion beyond * Continue with Mumba
Slide 19: Shareholding Pattern
• Others, 10% • Mutual Funds, 5% FIIs / FIPs, 10% • • Government 10% • Promoter and Promoter • Group, 65%
Slide 20: Management Team
• Over 29 years of experience • Over 14 years of experience at MGL • Served 4 years as an Executive Director • Prior experience at Bilt Chemicals, Cabot India, (Marketing) at GAIL Cement Corporation of India and Indian Aluminium Company Mr. Goutam Ghosh, Technical Director (Nominee of BGAPH) • Over
Slide 21: Financial and Operational Performance
Financial and Operational Performance MAHANAGAR GAS LIMITED
Slide 22: CNG and PNG Customers and Volume Growth
CNG Customers (end users) Growth PNG Customers Growth In ‘000s In ‘000s 572.0 952.2 992.6 545.5 865.2 470.5 804.0 421.3 708.6 359.1 643.5 285.5 FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 CNG Volume (mmscmd) PNG Volume (mmscmd) 5 yr. CAGR 5.8% 1.94 5 yr. CAGR 5.1% 1.90 0.
Slide 23: Revenue and Gross Profit
INR Bn Revenue (1) 5 yr. CAGR CNG 10.9% CNG PNG Others 5 yr. CAGR PNG 5.7% 5 yr. CAGR Total 9.2% 7.3 6.0 5.8 7.1 5.5 3.2 13.5 14.7 14.3 9.5 11.6 7.4 FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 Gross Profit (2) 10.2 7.4 8.0 8.5 7.0 6.0 FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 Note: (1) Revenue from Operations (Ne
Slide 24: EBITDA and PAT
Adverse forex rate, Higher RLNG spot rates, relatively less o Cautious pricing in view of 110% INR Bn increase in alternate fuel allocation of domestic gas EBITDA (1) prices – so INR 0.24 billion less o In 2nd half of FY 16, lower Brent margin from Industrial & lower Industrial & Commercial Commer
Slide 25: Capex and Operating Cash Flow
INR Bn Capex (1) Operating Cash Flow (2) 5.5 2.6 2.3 2.2 4.4 4.3 4.2 2.0 4.0 1.8 3.7 0.9 FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 Note: (1) Includes purchase of fixed assets, including intangible assets, capital work in progress and capital advances. (2) Net cash flow
Slide 26: Key Per-SCM Metrics and Ratios
Particulars FY 13 FY 14 FY 15 FY 16 FY17 H1 18 Avg Realization / SCM (INR) 19.7 22.7 23.8 23.2 21.5 Gross Margin / SCM (INR) 9.0 8.8 9.0 9.4 10.7 Opex / SCM (INR) EBITDA / SCM (INR) 6.4 5.9 5.6 5.7 6.9 EBITDA Margin % 31.9% 25.9% 23.4% 24.7% 31.7% Days Receivable * (Days) RONW % (1) 26.5% 24.0% 20.8
Slide 27: Dividend per Share and Payout Ratio
61.3% 61.5% 60.8% 58.8% 55.7% 6.5 7.5 7.5 7.5 7.5 12.5 10.0 10.0 10.0 10.0 FY 13 FY 14 FY 15 FY 16 FY 17 Normal DPS (INR) Special DPS (INR) Payout Ratio % Note: Payout Ratio calculated including Dividend Distribution Tax
Slide 28: Appendix
Appendix MAHANAGAR GAS LIMITED
Slide 29: Board of Directors
Mr. Akhil Mehrotra, Non-Executive Chairman (Nominee of BGAPH) • On the Board since March 11, 2016 • Over 24 years of experience in the industry. Presently, Director – Downstream business, BG India • Previously associated with the Reliance Group of Companies Mr. Virendra Nath Datt, Non-Executive Dire
Slide 30: Board of Directors (continued)
Mr. Jainendar Kumar Jain, Independent Director • On the Board since January 2008 • Served as Director (Finance) at GAIL from 1996 to 2005 • Chartered Accountant and fellow member of ICAI and holds a Bachelor’s degree in Commerce from Vikram University, Ujjain Mr. Arun Balakrishnan, Independent Direc
Slide 31: Statement of Profit and Loss, Half Year 2017
For three months ended For six months ended Sr. Particulars 30.09.2017 30.06.2017 30.09.2016 30.09.2017 30.09.2016 No. (Unaudited) (Unaudited) I Revenue from Operations 5,880.44 5,828.46 5,741.77 11,083.21 11,708.90 II Other Income 138.56 120.07 149.80 258.74 273.14 III Total Income (I + II) 6,019.0
Slide 32: Balance Sheet as at September 30, 2017
As at 30th September, 2017 As at 31st March, 2017 Particulars (Unaudited) (Audited) ASSETS I. Non-current Assets (a) Property, Plant and Equipment 13,543.49 13,003.09 (b) Capital Work-in-Progress 4,061.21 4,115.28 (c) Intangible Assets 46.42 44.43 (d) Financial Assets (i) Trade receivables 2.14 3.66
Slide 33: Balance Sheet: Equity and Liabilities
As at 30th September, 2017 As at 31st March, 2017 Particulars (Unaudited) (Audited) EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 (b) Other Equity 18,613.54 17,412.60 Total Equity (I) 19,601.31 18,400.37 II. Liabilities A. Non-current Liabilities (a) Financial Liabilities (
Slide 34: Balance Sheet as at March 31, 2017
Balance Sheet as at March 31, 2017 @ INR Mn MAHANAGAR Particulars As at 31st March 2017 | As at 31st March 2016 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 13,003.09 11,240.60 (b) Capital Work-in-Progress 4,115.28 4,288.65 (c) Intangible Assets 44.43 46.87 (d) Financial Assets (i)
Slide 35: Balance Sheet as at March 31, 2017
Balance Sheet as at March 31, 2017 @ INR Mn gambake GAS Particulars As at 31st March 2017 | As at 31st March 2016 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 893.42 (b) Other Equity 17,412.60 16,390.86 Total Equity (I) 18,400.38 17,284.28 II. Liabilities A. Non-current Liabiliti
Slide 36: Statement of Profit and Loss
Statement of Profit and Loss INR Mn MAHANAGAR For the year For the year Particulars ended ended 31st March 2017 | 31st March 2016 |_| Revenue from Operations 22,390.71 22,851.31 I | Other Income 526.57 471.78 IIL] Total Income (I+ II) 22,917.29 23,323.09 IV | Expenses : Cost of Natural Gas and Trade
Slide 37: Statement of Cash Flows
Statement of Cash Flows @ INR Mn MAMANAGAR GAS For the year ended For the year ended LAUISUS LS 31st March 2017 31st March 2016 1. CASH FLOW FROM OPERATING ACTIVITIES Profit before tax as per Statement of Profit and Loss 6,006.60 4,716.31 Adjustments for: Depreciation and Amortisation Expense 951.32
Slide 38: Statement of Cash Flows
Statement of Cash Flows @ INR Mn = For the year ended | For the year ended PARTICULARS 31st March 2017, | 31st March 2016 Il. CASH FLOW FROM INVESTING ACTIVITIES Payments for Property, Plant and Equipment (2,569.34) (2,154.33) Proceeds from sale of Property, Plant and Equipment 0.55 1.09 Payments fo
Slide 39: Note: Results as per earlier accounting standards
Note: These results are as per earlier accounting standards
Slide 40: Note: Results as per earlier accounting standards
Note: These results are as per earlier accounting standards
Slide 41: Note: Results as per earlier accounting standards
Note: These results are as per earlier accounting standards
Slide 42: Note: Results as per earlier accounting standards
Note: These results are as per earlier accounting standards
Slide 43: Safe Harbor
Safe Harbor * This presentation may contain statements which reflect the management's current views and estimates and could be construed as forward looking statements. ¢ The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views be
Slide 44: Thank You
Thank You... MGL House, G-33, Bandra Kurla Complex, Bandra (E) Mumbai - 400 051 T +91 22 6678 5000 F +91 22 6540093/1046 https://www.mahanagargas.com CIN : L40200MH1995PLC088133 MAHANAGAR a 4l NGL House, G-33 Block, Barxdra Kurla Complex, Bandra {E] , Mumbai -40005! | T +91 226678 5000 | F +91 22654