GAIL (India) Limited

Analyst Presentation FY 2010-11

2nd June 2011

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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  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

Safe Harbor Statement
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Vision
Be the leading  company in natural gas  and beyond with  global focus,  committed to  customer care, value  creation for all  stakeholders and  environment  responsibility

Mission
To accelerate and  optimize the effective  and economic use of  Natural Gas and its  fractions to the benefit  of the national  economy

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Q. Vinayshil Gautam Sh R M Sethi Sh Mahesh  Shah Prof.  Contractor Sh Arun  Aganrwal GAIL Management 02/06/2011 4 4 . A.Sh B C Tripathi Chairman & Managing Director Functional Directors  Sh R D Goyal Director (Proj) Sh S L Raina Director (HR) Sh Prabhat Singh Director (Mktg) Sh S Venkatraman Director (BD) Sh P K Jain Director (Fin) Government Nominee / Independent Directors  Sh Sudhir Bhargava Sh Apurva Chandra Dr.

 Jagoti Pitampur. Myanmar DVPL  & VSPL commissioned Acquisition of 15% stake in Natgas Incorporation of GAIL Global Singapore  Pte Acquisition of 9% equity stake in China  Gas Holdings ERP goes live 1993 1968-79 1968-79 1995 Pata Plant  Commissioned Stock Exchange Listing 1988 Mar 2001 1968-79 1989 Mar 2001 1968-79 MGL formed First year of profit 1986 1968-79 - HVJ Completed Major Milestones 02/06/2011 5 5 . DPPL. 1984 1968-79 LPG Plants ‐ Vijaipur  & Vaghodia st 1st Dividend 1999 1968 5 Pipeline authorization Block Oman Camay Production CBM Foray Gas discovery in A‐1 block.BGL formed JLPL Phase II GAIL Tel Agra Firozabad Pipelines completed:  DUPL. Kelaras Malanpur 2008 2009 Continue to Excel 2010 2011 2004 2005 DVPL/GREP II Compressors th 6th Furnace GAIL Gas Formed 4 Cities awarded IGL formedPLL formed  LPG plant ‐ Usar & Lakwa  Navratna Status LPG plant – Gandhar E&P Foray 1998 1968 2001 2003 Started  construction of  onshore pipeline:  HBJ (now HVJ) GAIL incorporated as a  government company  under the Companies  Act 1956. Thlendi Phulpur.

 750 Cr.25+ Years Baa2/A3 AAA 57%+ 14%+ 12%+ 3800+ 02/06/2011 Experience in Gas Pipelines Moody’s – Foreign/Domestic Rating ICRA & CRISIL for Bond Issue upto Rs. GoI Shareholding 10 Years Turnover CAGR 10 Years PAT CAGR Manpower Asset Quick facts 6 6 .

170 MMSCMD+ 1.4+ MMT 450+ TMT 28 2 20 Gas Transmission Capacity LHC Production Capacity Polymer Production Capacity E&P/CBM Blocks 100% Subsidiary Presence in        Countries JVs/Associate/Subsidiary Companies 4 Quick facts 02/06/2011 7 7 .

42 4.51 2.86 7.50 12.35 GoI LIC GDRs ONGC IOC FIIs Others Shareholding Pattern 02/06/2011 8 8 .Government of India is GAIL’s majority shareholder The  administrative  ministry  for  the  purpose  of  the  company  is  the  Ministry  of  Petroleum  &  Natural  Gas.03.54 57. Shareholding patterns as on 31.83 0.2011 14.  GoI GoI  has  no  plans  to  reduce  its  shareholding  in  GAIL  to  below 51%.

459 Cr ` 14.460 Cr ` 9.304 Cr 57% 59% 70% NG Trans LPG Trans NG Trading Petro OLHC 10 Year CAGR ­ 14%  02/06/2011 9 9 .Turnover Trend FY 2001‐02 FY 2005‐06 FY 2010‐11 9% 14% 13% 10% 18% 2% 11% 1% 14% 2% 9% 11% ` 32.

802 Cr 72% ` 5.277 Cr ` 1.240 Cr 52% 48% 23% 15% 2% 4% 5% NG Trans LPG Trans NG Trading Petro OLHC 10 Year CAGR ­ 12%  02/06/2011 10 10 .Profit (PBT) Trend FY 2001‐02 FY 2005‐06 FY 2010‐11 9% 19% 23% 18% 10% 0% ` 3.

Segmental Physical Performance  FY 10­11(Sales) Gas Transmission MMSCMD 106.101 1.43 LPG Transmission ‘000 MT 3.23 6% 3.073 OLHC 342 (12 )% 410 420 300 FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11 Core Business – Sustained Growth 02/06/2011 11 11 .161 10% 117.91 2% 83.337 FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11 Petrochemicals ‘000 MT 2% LPG ‘000 MT ‘000 MT (3) % 1.74 Gas Trading MMSCMD 81.

459 15% FY 2009-10 FY 2010-11 PBT 5.000 5.500 20.561 FY 2010-11 2.000 4.000 32.200 3.000 FY 2009-10 FY 2010-11 5.996 Gross Margin (EBITDA) 6.500 6. in FY 2010­11 12 12 .140 13% 3.500 24.500 PAT 3.000 22.800 5.000 FY 2009-10 4.000 3.240 14% 5.500 5.600 3.000 4.800 FY 2009-10 FY 2010-11 02/06/2011 Highest ever Subsidy – Rs.210 5.400 3.973 30% 32.500 4.578 3.500 30. 2111 Cr.Financial Performance FY 2010­11 (` in Crores) Sales (Net of ED) 35.000 27.500 25.

000 0 2 0 0 3 ‐0 4 2 0 0 4 ‐0 5 2 0 0 5 ‐0 6 2 0 0 6 ‐0 7 2 0 0 7 ‐0 8 2 0 0 8 ‐0 9 2 0 0 9 ‐1 0 2 0 1 0 ‐1 1 PAT (` in Cr) 4000 5.000 20.000 500 0 0 2 0 0 3 ‐0 4 2 0 0 4 ‐0 5 2 0 0 5 ‐0 6 2 0 0 6 ‐0 7 2 0 0 7 ‐0 8 2 0 0 8 ‐0 9 2 0 0 9 ‐1 0 2 0 1 0 ‐1 1 4000 3000 2000 1000 0 Subsidy Turnover with Subsidy Turnover without Subsidy Subsidy PAT with Subsidy PAT without Subsidy FY 2010 – 11 vs. (13% ↑ YoY) PAT without Subsidy .` 32459 Cr.000 3. FY 2009-10 Turnover with Subsidy .500 3000 4.000 4.` 34570 Cr.000 2.500 1.500 3.Financials – With & Without Subsidy Turnover 35.` 4971 Cr.000 30.000 5.500 2. (30% ↑ YoY) Turnover without Subsidy . (31% ↑ YoY) 02/06/2011 13 PAT with Subsidy . (24% ↑ YoY) 13 .` 3561 Cr.000 10.000 1000 1.000 25.000 2000 15.

500 2. at higher tariff • No impact of lower RIL production 2.100 21% 2.700 3.700 2.700 2.900 2.900 2.499 2.100 2.300 3. 1 Gas Transmission Company 75% of India’s Gas Travel through our System  14 14 .Gas Transmission Segment (` in Cr) Turnover • Core Business • Doubling the  Capacity  • Incremental Vol.500 3.500 11% FY 2009-10 FY 2010-11 EBITDA % 16 2.908 48% FY 2009-10 FY 2010-11 02/06/2011 India’s No.544 3.926 3.300 2.

654 FY 2009-10 FY 2010-11 70% EBITDA % 114 801 13% FY 2009-10 FY 2010-11 India’s No. 1 Gas Trading Company 02/06/2011 Over 50% of India’s Gas Traded by GAIL  15 15 .Gas Trading Segment (` in Cr) Turnover • Core Business • Doubling the  Capacity  • Marketing Margin on APM Gas • Spot RLNG to Boost Marketing Margin 374 15.821 % 43 22.

LPG Transmission Segment (` in Cr) Turnover • Core Business • Transmission of  LPG thro’ pipelines  • Only Player in India • Cooking LPG very robust growth 347 447 1% 6% 475 FY 2009-10 FY 2010-11 EBITDA 4% 360 FY 2009-10 FY 2010-11 6% Pipeline Transmission of around 1/4th of the  Country’s total LPG 02/06/2011 16 16 .

939 EBITDA (9% ) 1.488 FY 2009-10 FY 2010-11 1% 2. & OPAL 1.904 9% 2.Petrochemical Segment (` in Cr) Turnover • Diversified into Petrochemical • Only Gas based  plant in North India  • Promoter of BCPL.354 22% FY 2009-10 FY 2010-11 02/06/2011 Customer Preferred Brands – Glex & Glene 17 17 .

786 9% FY 2009-10 FY 2010-11 EBITDA 696 (17)% 579 10% FY 2009-10 FY 2010-11 Current High Product Prices will deliver the margin despite  of Higher Subsidy due to High Crude Prices  02/06/2011 18 18 .Liquid Hydrocarbon Segment (` in Cr) • Value addition in Gas Value Chain • 7 Processing Plants  across India • Cap.4 MMTPA • Cooking LPG very robust growth Turnover 2. ~ 1.833 (2)% 2.

2015 ▪ ▪ Sectors with demand Industries CNG transport Price of $1315/ mmbtu ▪ ▪ ▪ Refineries Industries Power (CCGTs) Price of $1013/ mmbtu ▪ Peaking power plants Price of $1011/ mmbtu ▪ ▪ Power New fertilizer plants Price of $67/ mmbtu Price at customer gate 02/06/2011 Large demand but  sensitive to price 19 19 . 2015 Imports Domestic supplies (MMMSCMD) Medium 2010 year end consumption 171 26 145 Low 59 29 30 230 55 200 200 200 46 25 276 76 35 111 High 311 77 187 387 175 Potential demand.Gas demand and supply.

a. 2015 16 (MMMSCMD) 215+ 70+ 20+ 30+ 145 20 5 8 65 50-60 145 ONGC.Projected net gas production from  domestic sources. Assuming 7-9% growth p.. OIL RIL KG-D6 Other private Supply in 2010 Declining fields CBM New fields RIL Additional 2015 additional potential total ▪ ▪ DGH expects domestic production to be approximately 200 mmscmd in 2015 Going forward. domestic gas supply could be between 300-330 mmscmd by 2020 Supply over next five years increasing but not  expected to keep pace with demand 02/06/2011 20 20 . there is potential for higher production given a large number of blocks are under evaluation.

6 mmtpa DABHOL 5 mmtpa DABHOL-BANGALORE P/L MUMBAI PUNE RAJAMUNDRY SOLAPUR KOLHAPUR GOA VIJAYAWADA NELLORE BANGALORE MALLAVARAM BHILWARA P/L Transmission Pipelines Existing Gas pipelines LPG Pipeline GAIL’s Planned Pipeline RIL’s East West Pipeline LNG Terminal MANGALORE CHENNAI EWPL KOCHI-KANJIKKOD-BANGALOREMANGALORE P/L KANJIKKOD COIMBATORE TIRUCHCHIRAPALLI KOCHI 5 mmtpa TUTICORIN Map not to Scale .PIPELINE PROJECTS TAPI P/L FROM PAKISTAN IPI PL FROM PAKISTAN CHAINSA – JHAJJAR – HISAR P/L Hisar NANGAL BHATINDA DELHI DADRI – BAWANA – NANGAL P/L GREP II BAREILLY LUCKNOW JAGDISHPUR KANPUR Jhajjarr GURGAUN JAISALMER MATHANIA AGRA AURAIYA DISPUR PATNA DVPL PH-II BARMER GWALIOR PHOOLPUR KOTA RAJKOT UJJAIN AHMEDABAD JHANSI VIJAYPUR BHOPAL VARANASI GAYA AGARTALA BOKARO JABALPUR BHILAI DAHEJ I & II 10 mmtpa KOLKATA CUTTACK BHARUCH BARODA SURAT DAMRA BHUBANESHWAR KRISHNAPATNAM KAKINADA HYDERABAD HALDIAJAGDHISPUR P/L HAZIRA 3.

 Standby machine at Jhabua by June 11  and Vijaipur Dec 11. Bawana Nangal: Commissioning by Dec 2011 Chainsa Sultanpur: Commissioned Sultanpur Neemrana: Commissioned Being implemented in phased manner ­ 2013­14  onwards Phase I  – Aug 2012 Phase II – December 2012 Phase I  – August 2012 Phase II – December 2012 4927 20 to 80 499 2358 1315 7596 4994 3263 31 35 32 16 16 594 349 2050 1414 1126 30290 6642 Planned Capex to tap the Opportunity 02/06/2011 22 22 . compressor at  Jhabua & Vijaipur VIJAIPUR DADRI  PIPELINES (Incl.   Vijaipur­ Dadri Pipeline commissioned  Compressor at Kailaras and Chainsa:  Commissioning by Dec 2011 Dadri Bawana Pipeline Commissioned.New Pipeline Capacity Built­up Pipeline Projects DVPL PIPELINES – PHASE  II Incl.  Compressor at Kailaras &  Chainsa) DADRI­BAWANA­ NANGAL PIPELINE CHAINSA­JHAJJAR­ HISSAR PIPELINE JAGDISHPUR­HALDIA  PIPELINE DHABOL­BANGALORE  PIPELINE KOCHI­KOOTTANAD­ MANGALORE /  BANGALORE TOTAL Approved Cost (` Cr) 5837 Capacity (MMSCMD) 24 to 78 Length  (KM) 610 Anticipated Completion (Status) Mainline compressor commissioned at Jabhua and  Vijaipur.

25 to 2.) Bawana Nangal spurlines (Uttrakhand &  Punjab) TOTAL 463 541 1555 2 4 290 270 906 Planned Capex to tap the Opportunity 02/06/2011 23 23 .75 Length  (KM) 185 90 71 Karanpur Moradabad Kashipur Rudrapur pipeline Focus energy Consortium to RRUVNL  (Ramgarh Terminal) (Commissioned) Capacity Augmentation of Agra &  Ferozabad Region (17 km section from  Agra to Ferozabad Commissioned) Vijaipur Kota Pipeline Upgradation and  laying of Spurlines (to Chittorgarh etc.2 1.5 1.New Spur Pipelines Capacity Built­up Pipeline Projects Approved Cost (` Cr) 252 99 200 Capacity (MMSCMD) 2.

641 Cr 39% Pipeline E&P Petro Others GAIL has a history of Excellent Project Management   to execute the Project within given time frame and without cost over run 02/06/2011 24 24 .500 5.500 10.000 12.Projected Capex Planned Capex  from 2011­12 to 2013­14 • • • • • 15.000 2.000 7.500 Click to edit Master text styles % share of Capex Second level 25% Third level Fourth level 29% 7% Fifth level (` in Cr) 11327 9622 7692 0 2011-12 2012-13 2013-14 `28.

12:1) as on 31.03.675 Cr Borrowing Portfolio 2% 34% 3.2011 02/06/2011 25 25 .Expected Capex Funding Planned Borrowings  from 2011­12 to 2013­14 10.000 4.000 • • • • • Click to edit Master text styles Second level Third level Fourth level Fifth level (` in Cr) 7.250 18% 2.000 8.000 6.000 0 2011-12 2012-13 2013-14 ECA Bonds OIDB Term Loan Aggressive Capex Plan calls for Borrowings (Domestic & International) Leverage on GAIL’s very low debt Equity ratio (0.325 3.100 46% ~ `13.

 Dart Energy `2305 Cr (upto 31.  Daewoo.  Eni.03.  Petrogas.  Jubilant. Ankleshwar  onland.Total Blocks Onshore Blocks Offshore Blocks CBM Blocks Major Operators Net investment  Hydrocarbons Discoveries  where appraisal &  Development activities are in  progress Operator in 2 blocks Commercial Block 28 (including 1 CBM block) 7 Deep 15 & Shallow ­ 5 1 (Dewatering in progress) ONGC. Cauvery offshore & Tripura Onland RJ­ONN­2004/1  (NELP­VI)  2005/1 (NELP­VII) Crude oil from Cambay Basin &  CY­ONN­ E&P Activities 02/06/2011 26 26 .  A1  &  A3  blocks  (Myanmar).2011) Hydrocarbons  Discoveries    in  7  Existing  Blocks  :  Cambay  onland.  Hardy.  GSPC. Mahanadi offshore.

) Retail Gas Presence (No of Cities) Power (MW) – Renewable Sources Power (MW) – Non­Renewable  8000 + 170 + ~0.5 ­ FY 2013­14 14000 + 300 + ~0.6 in FY 14­15) 3  (5 in FY 14­15) ~50 300 250 Planned Growth 02/06/2011 27 27 .9 (1.GAIL’s Future FY 2010­11 NG Trans Pipeline (KM) NG Trans Capacity (MMSCMD) Polymer Capacity  (incl BCPL)  (MMT) E&P Revenue Generating Blocks  (Nos.4 1 15 4.

Growth Drivers from FY 11­12 & onwards • Additional Gas availability: – ONGC – Natural Gas Supply from Bandra. Vasai and C Series – Dabhol – RLNG – Incremental RIL KG Basin Gas – Additional Volumes from new explorations Blocks  – FOCUS ENERGY  – Natural Gas Supply from Rajasthan field – Long­term / Mid Term LNG tie­ups – Spot LNG – ongoing basis • • Upside in Polymer/Liquid Hydrocarbon Product Prices  Foray into Power Sector Visible Growth drivers 02/06/2011 28 28 .

 Dahej Project with ONGC – 1.1 mmtpa ethylene  capacity (38% Marketing share by GAIL) – Exploring setting up / participation in Petrochemical projects overseas  • City gas Distribution (CGD) – 8 JVs already opertaional – GAIL Gas Ltd.9 MMTPA by 2014  – Participation in OPaL.Growth Drivers from FY 11­12 & onwards • Petrochemical Business Segment: – Enhanced Pata Petrochemical Production from Q4 of FY 10‐11  onwards – Completion of BCPL project of 0.  Visible Growth drivers 02/06/2011 29 29 . a 100%  Subsidary incorporated  • PNGRB Authorized GAIL Gas for Four CGD projects – More than 230 cities identified for CGD in a phased manner.28 MMTPA by 2013  – Pata Expansion to 0.

Strong Financials Strong GoI Support Relatively New Assets Strong Gas Demand Large Capex Plans in Place Dominant Position ‐ Transmission Naturally GAIL 02/06/2011 30 30 .GAIL (India) Ltd.

GAIL (India) Limited Thank You .