GAIL (India) Limited · NSE:GAIL
GAIL (India) — Investor Presentation (May 2013)
38 slides from GAIL (India)'s investor presentation, May 29, 2013
Slide 1: Analysts' & Investors' Meet Presentation
(India’s Youngest Maharatna) Analysts’ & Investors’ Meet Presentation 29th May 2013 1
Slide 2: Safe Harbor Statement
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 hist
Slide 3: Vision and Mission
Vision Be the leading company in natural gas and beyond with global focus, Mission committed to customer care, value creation for all stakeholders and To accelerate and optimize the environment responsibility effective and economic use of Natural Gas and its fractions to the benefit of the national
Slide 4: Now becomes India's Youngest Maharatna
India’s No. 1 Natural Gas Company Asia’s No. 1 Gas Utility * World’s No. 1 Downstream Company * - First PSU to - Birth of GAIL - First acquire shale gas 1984 1999 2011 acreage in US for NG Trans. & Petrochemical Mktg Plant at Pata - Subsidiary in US - Signed Henry Hub - Asia’s largest linked LNG dea
Slide 5: Team GAIL
Team GAIL Functional Directors : 6 Govt. Nominee Director : 1 Independent Director : 3 Total Manpower : 3950+ Functional Directors Sh B C Tripathi, Chairman & Managing Director 5
Slide 6: Part Time Directors
Part Time Directors Government Nominee Director Sh P K Singh (IAS), JS, MOP&NG Independent Directors Dr A K Khandelwal Sh Arun Aggarwal Smt Shyamala Gopinath 6
Slide 7: GAIL Story
GAIL Story About 3/4th of the Total Natural Gas Transmitted though pipelines in India More than 1/2 of the natural gas sold in India Almost 1/5th of Poly-ethelene produced in country LPG produced for every 10th LPG cylinder in the country Pipeline Transmission of around 1/4th of country’s total LPG
Slide 8: GAIL Story
GAIL Story Gas Supply for about 1/2 of the country’s gas based power generation Operating more than 2/3rd of country’s CNG stations More than 1/2 of country’s piped natural gas supply 17%+ 10 year Turnover CAGR 9%+ 10 year PAT CAGR 3950+ Manpower Asset 8
Slide 9: Business Portfolio
Business Natural Gas - Over 10,700 kms of network Portfolio Petrochemical - Domestic market share – ~20% - Expanding to 14,500 kms - Petrochemical Plant in Pata (UP) - Sophisticated Gas management with capacity of 450 TPA System - Expanding to 900 TPA by FY2014 - Pursuing for expansion of - Particip
Slide 10: GAIL Group
GAIL Group Subsidiary JVs Associates CGD - JVs GAIL Gas Maharashtra Nat Gas Avantika gas BCPL Bhagyanagar Gas Central UP Gas GSEG Green Gas Ltd. Mahanagar Gas GAIL Global, Fayum Gas, Egypt Indraprastha Gas Singapore Tripura NGCL NATGAS, Egypt OPAL China Gas Holding GAIL Global, USA Ltd. PLL GAIL LNG
Slide 11: Performance Highlights
Touching lives through green energy Performance Highlights
Slide 12: Major Highlights of FY13
Major Highlights of FY13 Granted Maharatna Status Added 34 MMSCMD/1800Km NG Transmission Capacity Commissioned Dabhol LNG Terminal Signed 2 Mid Term LNG Sourcing Deals Regasification capacity booked in 2 RLNG Terminals Liquefaction capacity booked in Dominion Cove Point, US Imported 12 LNG Cargoes 1
Slide 13: Major Highlights of FY13
Major Highlights of FY13 Highest Ever Sales Turnover `47,333 Cr – YoY Growth 18% Highest Ever EBITDA `7,233 Cr – YoY Growth 16% Highest Ever PAT `4,022 Cr – YoY Growth 10% Subsidy shared Rs.2687 Cr towards under-recoveries of OMCs Cash Capital Expenditure of over Rs.5900 Cr Loan drawn - Rs.4048 Cr (
Slide 14: Segmental Physical Performance (Sales)
Segmental Physical Performance (Sales) Gas Transmission Gas Trading LPG Transmission (MMSCMD) (MMSCMD) (TMT) 118 84 105 3362 81 3136 Petrochemicals LPG OLHC (TMT) (TMT) (TMT) 448 1125 427 1075 316 296 FY 2011-12 FY 2012-13 14
Slide 15: Financial Performance (Standalone)
Financial Performance (Standalone) Sales (Net of ED) Gross Margin (PBDIT) (` in Crores) (` in Crores) 47333 7233 40281 6247 PBT PAT (` in Crores) (` in Crores) 6058 4022 3654 5340 FY 2011-12 FY 2012-13 LPG Subsidy for FY 12-13: ` 2687 Cr (` 3183 Cr for FY 11-12) 15
Slide 16: Financial Performance (Consolidated)
Financial Performance (Consolidated) Sales (Net of ED) Gross Margin (PBDIT) (` in Crores) (` in Crores) 50893 8314 44058 7762 PBT PAT (` in Crores) (` in Crores) 4444 4374 6355 6558 FY 2011-12 FY 2012-13 16
Slide 17: Financial Highlights
Financial Highlights Segment-wise Breakup of Turnover (%) (` in Crores) FY 2011-12 FY 2012-13 3090, 3564, 4,434 , 3,066 , 8% 9% 454, 9% 6% 3378, 1% 294 , 3,744 , 1% 8% 8% 29671, 35,596 74% , 76% Segment-wise Breakup of Profit Before Tax (%) FY 2011-12 FY 2012-13 (` in Crores) 563, 1,596 , 10% 1,717
Slide 18: Financial Highlights
Financial Highlights (` in Crores) Particulars FY12 FY13 Capital Employed 28,741 35,591 Gross Block 26,307 31,149 Net Worth 21,449 24,038 Loan Outstanding 5,347 9,064 Debt : Equity Ratio 0.25:1 0.38:1 Strong Balance sheet to support future Capex 18
Slide 19: Projected Capex
Projected Capex Planned Capex from 2013-14 to 2015-16 `10,952 Cr # 6,000 5398 % share of Capex 5,000 17% 35% 4,000 3543 (` in Cr) 3,000 2011 2,000 39% 9% 1,000 - 2013-14 2014-15 2015-16 Pipeline E&P Petro Others GAIL has a history of Excellent Project Management to execute the Project within given t
Slide 20: Projected Borrowing
Projected Borrowing Planned Borrowings Borrowing Portfolio 2,500 ~ `3,500 Cr (31.03.2013) 2,000 2,000 8% 19% (` in Cr) 1,500 1,500 18% 55% 1,000 500 ECA/ECB Bonds 0 2013-14 2014-15 OIDB Term Loan • Very Comfortable level of debt Equity (0.38:1) & DSCR (5X) as on Mar 13 • 33% of Foreign Currency loan
Slide 21: Industry Outlook & GAIL's Strategy
Industry Outlook & GAIL’s Strategy 21
Slide 22: Gas: The Most Eco Friendly Fuel
CARBON DIOXIDE (mg) 900 720 19th CENTURY - COAL 380 20th CENTURY - OIL COAL FO GAS NITROGEN DIOXIDE (mg) 21ST CENTURY - GAS 600 480 350 COAL FO GAS SULPHER DIOXIDE (mg) 60 20 0 COAL FO GAS SOLID PARTICULATES Coal – Very Large Fuel Oil – Traces GAS – THE MOST Gas – Nil ECO FRIEDNLY FUEL SOURCE : UN –
Slide 23: Sources of Natural Gas Production & Supplies
Sources Of Natural Gas Production & Supplies Domestic Imports On-land Sedimentary Fixed LNG Terminal Basins Floating Storage & Offshore Sedimentary Regasification Unit Basins (FSRU) Coal Bed Methane/ Coal Trans-national Gas Gasification Pipelines Offshore Hydrates CNG By Ship 23
Slide 24: Gas Fractions and their Use
Gas Fractions and their Use Major Applications METHANE (C1) Fertilizer Power Fuel CNG & PNG Natural Gas Fractions ETHANE (C2) PROPANE (C3) BUTANE (C4) LPG Plastics SYN Rubber PENTANE Industrial Use (C5)+ (Paints & Solvents) 24
Slide 25: Indian Energy Sector: An Overview
Indian Energy Sector: An overview 12275 4803 559 1.2 % 2.2 % 5.9 % 100% 11 10 90% 24 9 8 % Consumption 80% 13 70% 53 2.5 % 5.4 % 7.4 % 60% 53 50% 30 40% 30% 20% 33 27 29 10% 0% World Asia India Oil Coal Others Natural Gas 3 yr. Growth in Primary Energy Consumption 3 yr. Growth in Natural Gas Consump
Slide 26: Role of Gas in Indian Industry
Role of Gas in Indian Industry POWER (1,95,000 MW) FERTILISER (25 MMTPA) 9% 88% 20 MMTPA PETROCHEMICALS (2.3 MMTPA) LIQUID HYDROCARBON (8 MMTPA) 39% 43% 2.5 MMTPA 1 MMTPA Significant Potential For Gas In All End Use Segments 26
Slide 27: Demand Supply Gap
473 Demand Supply Gap 446 405 371 139 153 144 158 293 121 108 177 161 113 96 116 113 180 113 MMSCMD 110 170 62 115 105 73 189 207 153 171 154 135 104 105 113 118 2012-13 2013-14 2014-15 2015-16 2016-17 Demand Power Fertilizers Others Demand–Supply Supply Domestic RLNG Gap Source – XIIth Five year pl
Slide 28: Current Natural Gas Sources for Transmission
Current Natural Gas Sources for Transmission (MMSCMD) 50 51 32 30 27 17 7 6 1 1 FY12 FY13 ONGC/OIL RLNG RIL PMT Others 28
Slide 29: Gas Price Segmentation
Gas Price Segmentation (MMSCMD) 270-290 210-230 60 150-160 60-70 60-70 Upto $10/MMBTU Upto $14/MMBTU Upto $18/MMBTU Price Power (CCGT), Fertilizers (Naphtha), Power Fertilizer (Gas), Fertilizers (FO), (Naphtha), Steel Industrial, Captive Power, CGD, Power (CCHP), Refining Power (Peaking), (Naphtha)
Slide 30: Gas Sourcing
Gas Sourcing Dominion Cove Point : 2.3 MMTPA (EYS – 2017 for 20 Yrs) Sabine Pass Liquification, USA : 3.5 MMTPA (EYS – 2017 for 20 Yrs) Gazprom, Russia: 2.5 MMTPA (EYS – 2020 for 20 Yrs) TAPI project : 10 MMTPA (EYS – 2020 for 30 Yrs) Mid Term Deals with GDF & GNF (Supply started in 2013 for 2/3 Yrs
Slide 31: GAIL's Participation in LNG Re-gasification Infrastructure
GAIL’s Participation in LNG Re-gasification Infrastructure Dahej (PLL): - Capacity – 10 MMTPA - Expansion – 5 MMTPA - GAIL’s share in Expansion (2.5 MMTPA) to start in FY16 Dabhol (GAIL): FSRU near Paradip (GAIL): - Capacity – 5 MMTPA - Expected Capacity – 3.5 - GAIL’s share 5 MMTPA MMTPA - Commissi
Slide 32: Pan India Presence
Pan India Presence Ra Shaihiddamas [Pata pLant 1) (B erancu orrice) * PIPELINES UNDER EXECUTION . —— (PG PIPELINE fo ZONAL OFFICE | f* ES omit J wee RECENTLY AUTHORISED PIPELINE Eire rvanre i] BS Socal 32
Slide 33: Petrochemicals Outlook
Petrochemicals Outlook Petrochemical Expansion at Pata - Expansion of Petrochemical complex from existing 0.45 MTPA to 0.9 MTPA - Scheduled Completion : Feb 2014 - Approved Project Cost: Rs. 8140 Crores - Cumulative Physical Progress of 86 % against schedule of 75 % as on Apr 13 - GAIL is transmitti
Slide 34: E&P Outlook
E&P Outlook • Participation in 30 Blocks • GAIL is Operator in 3 onland blocks • Revenue from Cambay Onland block – Rs. 78 Crores in FY13 • A-1 & A-3 Blocks in Myanmar under development. Production expected to start from July 2013. • Declaration of Commerciality submitted for Mahanadi offshore, Trip
Slide 35: Vision for the Future
Vision for the Future UPSTREAM - Thrust on global sourcing & acquisitions - LNG from traditional sources & equity linked LNG - Sourcing through transnational pipelines - Domestic tie-ups with operators of NELP-blocks MIDSTREAM - Continue pipeline expansion (NG+LPG) - Set up LNG regas terminals / FSR
Slide 36: Our Touch Points
Our Touch Points For Institutional Investors For Retail Investors & Analysts Shri Subir Purkayastha, Shri N K Nagpal, Executive Director (Finance & Accounts) Company Secretary E-mail ID: subirp@gail.co.in E-mail ID: nknagpal@gail.co.in (India’s Youngest Maharatna) 16, Bhikaiji Cama Place, R.K. Puram
Slide 37: Thank You
GAIL (India) Limited Touching lives through green Energy Thank You ‘eoggserr™
Slide 38: Thank You
Thank You 38