Mahanagar Gas Ltd · NSE:MGL

Mahanagar Gas — Investor Presentation (July 2020)

38 slides from Mahanagar Gas's investor presentation, Jul 6, 2020

  1. Slide 1: Cover letter to stock exchanges: Investors Presentation

    A2 0 MAHANAGAR GAS MAHANAGAR GAS LIMITED Ref: MGL/CS/SE/2020/342 Date: July 06, 2020 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Ltd P. J. Towers, Exchange Plaza, Bandra —Kuria Complex, Dalai Street, Bandra (East), Mumbai -

  2. Slide 2: Presentation to Investors March 2020

    PRESENTATION TO INVESTORS March - 2020 1 www.mahanagargas.com

  3. Slide 3: MGL: An Introduction

    MIGL: An Introduction MAHANAGAR GAS LIMITED

  4. Slide 4: 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 Market Raigad with more than 25-year track record in Mumbai (1) Low-Cost Gas Cost-effective availability of domestic natural gas with sourcing flexibility Availability S

  5. Slide 5: Our Journey: Record of Growth and Excellence

    Our Journey : Record of Growth and Excellence Net Worth – INR billion 29.5 Started Commercial operations in 200th CNG Raigad dispensing station New GA Raigad Listing on NSE 110% and BSE As of March allocation of 31, 2020 Pipeline domestic gas PE – 3,800 km & 3rd CGS at Steel - 380 km Taloja & 4th CG

  6. Slide 6: Areas of Operation

    Areas of Operation Mira- Business Operations Bhayander, Navi Mumbai, Thane City, Kalyan, Taloja, Raigad District Mumbai & Areas of Ambernath, (adjacent to Bhiwandi Greater Mumb Operation Dombivli, existing area of ai Ulhasnagar, operation) Mira-Bhayander Kalyan Badlapur, Thane Bhiwandi, Dombivily Kh

  7. Slide 7: The MGL Proposition

    The MGL Proposition Significant Growth Potential Backed by Favorable  Industry Conditions Underpenetrated Market with Significant Potential for  Expansion Robust Infrastructure in Place to Support Future  Growth  Favorable Regulatory environment  Cost Effective Sourcing Strategy  Strong Operat

  8. Slide 8: Natural Gas and CGD: Attractive Industry

    Market Natural Gas and CGD : Attractive Industry Industry Overview • India was the third-largest energy consumer in the world after China and US in 2019(1) • India‟s primary energy consumption has increased by ~ 58% between 2009 and 2019, reaching ~813 MToe(1) • India‟s per capita energy consumption

  9. Slide 9: Attractive Fuel Economics

    Attractive Fuel Economics CNG Retains its Price Competitiveness vs. Other Fuels Comparison of Alternative Fuel Costs Commercial PNG Favorably Priced vs. Alternate Fuels Particulars INR / kg or INR / L Particulars UoM Differential (2) CNG 47.95 (1) PNG (4) INR/SCM 35.37 Differential (3) 39% Commercia

  10. Slide 10: Diversified Sourcing Strategy

    Diversified Sourcing Strategy CNG & Domestic PNG Industrial / Commercial PNG APM N-APM Term Spot Source Western offshore Western Offshore RLNG RLNG MoPNG  BPCL  GAIL  BGIES  GSPCL Suppliers  Hazira LNG  HPCL  PLL  IOCL GAIL  SEMTIPL  TPL  Domestic supply agreement - MoPNG allocates gas fo

  11. Slide 11: Priority Segment Forms Majority - Diversified Sourcing Strategy

    Priority Segment Forms Majority Diversified Sourcing Strategy FY 20 Sales Composition • Allocation 10% over and above the 100% requirement 72.6% • Pricing APM price significantly lower than market price of imported natural gas 13.7% 6.1% 7.6% • Distribution Majority of MGL‟s sales are from Priority

  12. Slide 12: Enablers: Infrastructure in place

    Infrastructure in place Extensive Supply Network Built Over 20 Years Asset Base Fixed Asset of INR 25.39 CNG Customer Base(3) • Infrastructure Exclusivity Bn(1) ~0.75 Mn  Mumbai: Up to 2020 Capex for 2020 INR 2.9 Bn(2)  Adjoining Areas: Up to 2030  Raigad: Up to 2040 Enablers 256 CNG filling stat

  13. Slide 13: Regulatory Environment Creating Strong Barriers to Entry and Incumbent Advantage

    Regulatory Environment Creating Strong Barriers to Entry and Incumbent Advantage Description Implication for MGL • Built in advantage for incumbent Authorization to lay, build, operate or Authorization • Authorization for Mumbai, its expand a CGD network adjoining areas and Raigad • Infrastructure e

  14. Slide 14: MGL Growth Strategy

    MGL Growth Strategy Further develop Increase infrastructure Continue Cost- penetration in Effective and existing markets • Invest in infrastructure Reliable Sourcing to cater to MGL‟s Arrangement larger customer base Seek Growth • Increasing population and improve the quality expected to increase of

  15. Slide 15: Innovative Modes of Gas Supply

    Innovative Modes of Gas Supply Hub & Spoke Method for demand centers located away from pipelines  (Virtual pipeline mode)  Supply of LNG through small cryogenic cylinders Small LNG cylinders  LNG and LCNG fueling stations along Highways  CNG-in-a-box / Pole mounted dispensing to optimize CNG sta

  16. Slide 16: MGL Shareholders

    MGL Shareholders GAIL (India) Ltd. Shareholding Pattern as of 31St March 2020 • India‟s largest natural gas company with a market share of over 80% • Possesses transmission network of ~11,000 kms of natural gas pipeline transmission network with total Promoter and capacity of 206 MMSCMD FIIs / FPIs,

  17. Slide 17: Our Experienced Management Team

    Our Experienced Management Team – As on March 31, 2020 Mr. Sanjib Datta Mr. Deepak Sawant Managing Director (Nominee of GAIL) Deputy Managing Director (Nominee of GAIL)  Over 32 years of experience  Over 28 years of experience  Heading business development function  Experience also includes over

  18. Slide 18: Our Experienced Management Team (continued)

    …. Our Experienced Management Team – As on March 31, 2020 Mr. Chakrapani Atmakur Mr. Gurvinder Singh, Vice President - Human Resources & Vice President - Projects Corporate Communication  Over 28 years of experience  Over 28 years of experience  Prior experience at SI Group(I) Pvt Ltd,  Prior ex

  19. Slide 19: Financial and Operational Performance

    Financial and Operational Performance 18

  20. Slide 20: Growth backed by increased customer base and coverage area

    Growth backed by increased customer base and coverage area CNG Customers (end users) Growth PNG Customers Growth (In ‘000s) (In ‘000s) 751.3 692 609 1,273 545 1,150 470 1,037 421 952 804 865 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 CNG Volume (mmscmd) PNG Volume (mmscm

  21. Slide 21: Revenue and Profitability

    Revenue and Profitability Revenue (INR Bn) 5 yr. CAGR CNG 8.7% 5 yr. CAGR PNG 4.3% 5 yr. CAGR Total 7.2% 8.9 8.8 6.0 6.8 7.3 5.8 18.8 20.5 13.5 14.7 14.3 15.4 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Others PNG CNG Gross Profit (INR Bn) 15.9 13.9 12.0 10.2 8.0 8.5 FY 15 FY 16 FY 17 FY 18 FY 19 H1 20 Note

  22. Slide 22: Profitability

    Profitability o Cautious pricing in view of forthcoming 110% allocation of domestic gas o In 2nd half of FY 16, lower EBITDA (INR Bn) Brent  lower Industrial & Commercial prices 10.5 7.8 8.9 6.4 4.9 5.1 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 PAT (INR Bn) 7.9 5.5 4.8 3.9 3.0 3.1 FY 15 FY 16 FY 17 FY 18

  23. Slide 23: Capex and Operating Cash Flows

    Capex and Operating Cash Flows The Company‟s financial position provides it with flexibility to expand its network in existing markets and expand to new markets in India Capex (INR bn) (1) Operating Cash Flow (INR bn) 4.2 (2) In 18-19, OMC trade 9.8 3.6 discount settlement of Rs 0.36 bn & higher dir

  24. Slide 24: Other Financial Metrics

    Other Financial Metrics Particulars FY 15 FY 16 FY17 FY 18 FY 19 FY 20 Avg Realization / SCM 23.8 23.2 21.5 22.4 25.7 27.3 (INR) Gross Margin / SCM (INR) 9 9.4 10.7 12.1 12.7 14.5 Opex / SCM (INR) 3.6 3.8 4 4.3 4.7 5.0 EBITDA / SCM (INR) 5.6 5.7 6.9 7.9 8.2 9.7 EBITDA Margin % 23.4% 24.7% 31.7% 34.9

  25. Slide 25: Creating value for shareholders

    Creating value for shareholders 40.0 70.0% 60.8% 35.0 58.8% 56.4% 60.0% 30.0 47.3% 50.0% 43.6% 46.0% 25.0 40.0% 20.0 35.0 30.0% 15.0 20.0% 10.0 19.0 19.0 20.0 17.5 17.5 5.0 10.0% - 0.0% FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 DPS (INR) Payout Ratio % Note: 1. Payout Ratio calculated including Dividend D

  26. Slide 26: Appendix

    Appendix MAHANAGAR GAS LIMITED

  27. Slide 27: Board of Directors – As on March 31, 2020

    Board of Directors – As on March 31, 2020 Dr. Ashutosh Karnatak, , Chairman  On the Board effective from August 1, 2019  Chairman and Managing Director, GAIL (India) Limited  M. Tech (Energy Studies) from IIT Delhi, an MBA (Finance) from IGNoU, a Ph.D. from University of Petroleum & Energy Studie

  28. Slide 28: Board of Directors – As on March 31, 2020

    Board of Directors – As on March 31, 2020 Mr. Premesh Kumar Jain, Independent Non-executive Director  On the Board effective from April 09, 2018.  Over 35 years of experience in Oil & Gas sector in areas of FX Risk Mgmt, Budgeting & Corporate Accounts  Former Director (Finance) of GAIL for more t

  29. Slide 29: Statement of Financial Results for the year ended March 31, 2020

    Statement of Financial Results for the year ended March 31, 2020 INR Mn Sr. For the year ended For the year ended Particulars No. 31st March 2020 31st March 2019 I Revenue from Contracts with Customers 32,644.86 30,567.93 II Other Income 989.53 777.13 III Total Income (I + II) 33,634.39 31,345.06 IV

  30. Slide 30: Statement of Assets and Liabilities as at March 31, 2020

    Statement of Assets and Liabilities as at March 31, 2020 INR Mn As at As at Particulars 31st March 2020 31st March 2019 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 19,262.19 17,587.53 (b) Capital Work-in-Progress 4,865.33 3,696.87 (c) Intangible Assets 46.35 46.61 (d) Right to Use

  31. Slide 31: Statement of Assets and Liabilities as at March 31, 2020 (Contd.)

    Statement of Assets and Liabilities as at March 31, 2020 (Contd….) INR Mn As at As at Particulars 31st March 2020 31st March 2019 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 (b) Other Equity 28,538.90 23,000.92 Total Equity (I) 29,526.68 23,988.70 II. Liabilities A. Non-c

  32. Slide 32: Statement of Assets and Liabilities

    Statement of Assets and Liabilities INR Mn As at As at As at As at Particulars st st st st 31 March, 2020 31 March, 2019 31 March, 2018 31 March, 2017 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 19,262.19 17,587.53 15,280.59 13,003.09 (b) Capital Work-in-Progress 4,865.33 3,696.87

  33. Slide 33: Statement of Assets and Liabilities (Contd.)

    Statement of Assets and Liabilities (Contd….) INR Mn As at As at As at As at Particulars 31st March, 2020 31st March, 2019 31st March, 2018 31st March, 2017 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 987.78 987.78 (b) Other Equity 28538.90 23,000.92 19,965.69 17,412.60 T

  34. Slide 34: Statement of Profit and Loss

    Statement of Profit and Loss INR Mn Sr. For the year ended Particulars No. 31st March 2020 31st March 2019 31st March 2018 31st March 2017 I Revenue from Contracts with Customers 32,644.86 30,567.93 24,529.17 22,390.71 II Other Income 989.53 777.13 576.81 526.57 III Total Income (I + II) 33,634.39 3

  35. Slide 35: Statement of Cash Flows

    Statement of Cash Flows INR Mn For the year ended PARTICULARS 31.03.2020 31.03.2019 31.03.2018 31.03.2017 I. CASH FLOW FROM OPERATING ACTIVITIES Profit before tax as per Statement of Profit and Loss 9,835.37 8,369.12 7,265.13 6,006.60 Adjustments for: Depreciation and Amortisation Expense 1,617.26 1

  36. Slide 36: Statement of Cash Flows

    Statement of Cash Flows INR Mn For the year ended PARTICULARS 31.03.2020 31.03.2019 31.03.2018 31.03.2017 II. CASH FLOW FROM INVESTING ACTIVITIES Payments for Property, Plant and Equipment/ Intangibles/ Right to Use Assets (4,348.89) (3,627.33) (2,690.29) (2,545.21) Sale of Property, Plant and Equip

  37. Slide 37: 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

  38. Slide 38: 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 37

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