Gail (india) Limited · NSE:GAIL

Gail (india) — FY2010-11 Earnings Presentation

31 slides from Gail (india)'s earnings presentation, Jun 2, 2011

  1. Slide 1: GAIL (India) Limited Analyst Presentation FY 2010-11

    GAIL (India) Limited Analyst Presentation FY 2010-11 2nd June 2011

  2. Slide 2: 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

  3. Slide 3: Vision Mission

    Vision Mission Be the leading To accelerate and company in natural gas optimize the effective and beyond with and economic use of global focus, Natural Gas and its committed to fractions to the benefit customer care, value of the national creation for all economy stakeholders and environment respons

  4. Slide 4: GAIL Management

    Sh B C Tripathi Chairman & Managing Director Functional Directors Sh R D Goyal Sh S L Raina Sh Prabhat Singh Sh S Venkatraman Sh P K Jain Director (Proj) Director (HR) Director (Mktg) Director (BD) Director (Fin) Government Nominee / Independent Directors Sh Sudhir Sh Apurva Sh Mahesh Prof. A.Q. Sh

  5. Slide 5: Major Milestones

    Pipelines completed: Continue to Excel DUPL, DPPL, Thlendi Phulpur, Jagoti 2011 2010 Pitampur, Kelaras BGL formed Malanpur JLPL Phase II 2009 GAIL Tel 2008 DVPL/GREP II Agra Firozabad Compressors 2004 6th th Furnace 2005 LPG plant – Gandhar 2001 GAIL Gas Formed IGL formedPLL formed E&P Foray 2003 4

  6. Slide 6: Quick facts

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

  7. Slide 7: Quick facts

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

  8. Slide 8: Shareholding Pattern

    Government of India is GAIL’s majority shareholder ƒ The administrative ministry 14.50 for the purpose of the company is the Ministry of Petroleum & Natural Gas, 12.51 GoI 2.42 57.35 4.83 ƒ GoI has no plans to reduce 0.86 its shareholding in GAIL to 7.54 below 51%. GoI LIC GDRs ONGC IOC FIIs Others

  9. Slide 9: Turnover Trend

    Turnover Trend FY 2001‐02 FY 2005‐06 FY 2010‐11 9% 11% 9% 1% 14% 14% 2% 13% 18% 11% ` 32,459 Cr 10% 2% ` 14,460 Cr ` 9,304 Cr 59% 70% 57% NG Trans LPG Trans NG Trading Petro OLHC 10 Year CAGR ­ 14% 02/06/2011 9 9

  10. Slide 10: Profit (PBT) Trend

    Profit (PBT) Trend FY 2001‐02 FY 2005‐06 FY 2010‐11 9% 19% 23% ` 5,240 Cr 48% 18% 10% ` 3,277 Cr 52% 0% ` 1,802 Cr 23% 72% 15% 2%4% 5% NG Trans LPG Trans NG Trading Petro OLHC 10 Year CAGR ­ 12% 02/06/2011 10 10

  11. Slide 11: Core Business – Sustained Growth

    Segmental Physical Performance FY 10­11(Sales) Gas Transmission Gas Trading LPG Transmission MMSCMD MMSCMD 2% ‘000 MT 6% 3,337 10% 117.91 81.43 83.23 106.74 3,161 FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11 Petrochemicals LPG OLHC ‘000 MT ‘000 MT ‘000 MT 2% 420 410 (3) % 342 (1

  12. Slide 12: Financial Performance FY 2010-11

    Financial Performance FY 2010­11 (` in Crores) Sales (Net of ED) Gross Margin (EBITDA) 35,000 6,500 32,459 5,973 32,500 30% 30,000 6,000 15% 27,500 24,996 5,210 5,500 25,000 5,000 22,500 20,000 4,500 FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11 PBT PAT 5,500 3,800 5,240 3,561 14% 3,600 13% 5,000 4,57

  13. Slide 13: Financials – With & Without Subsidy

    Financials – With & Without Subsidy Turnover PAT (` in Cr) 35,000 4000 5,000 4000 4,500 30,000 4,000 3000 3000 25,000 3,500 3,000 20,000 2000 2,500 2000 15,000 2,000 10,000 1,500 1000 1000 1,000 5,000 500 0 0 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 ‐

  14. Slide 14: Gas Transmission Segment

    Gas Transmission Segment (` in Cr) Turnover • Core Business 3,544 3,700 11% 21% 3,500 • Doubling the 3,300 2,926 3,100 Capacity 2,900 2,700 • Incremental Vol. 2,500 FY 2009-10 FY 2010-11 at higher tariff EBITDA • No impact of lower 2,908 RIL production 2,900 16 % 2,700 2,499 48% 2,500 2,300 2,100 FY

  15. Slide 15: Gas Trading Segment

    Gas Trading Segment (` in Cr) Turnover • Core Business 22,654 % 43 • Doubling the 15,821 Capacity • Marketing Margin 70% FY 2009-10 FY 2010-11 on APM Gas EBITDA • Spot RLNG to Boost 801 Marketing Margin 114 % 374 13% FY 2009-10 FY 2010-11 India’s No. 1 Gas Trading Company 02/06/2011 Over 50% of Indi

  16. Slide 16: LPG Transmission Segment

    LPG Transmission Segment (` in Cr) Turnover 1% • Core Business 6% 475 447 • Transmission of LPG thro’ pipelines • Only Player in India FY 2009-10 FY 2010-11 • Cooking LPG very EBITDA robust growth 4% 360 347 FY 2009-10 FY 2010-11 6% Pipeline Transmission of around 1/4th of the 02/06/2011 Country’s t

  17. Slide 17: Petrochemical Segment

    Petrochemical Segment (` in Cr) Turnover • Diversified into 1% 9% 2,904 2,939 Petrochemical • Only Gas based plant in North FY 2009-10 FY 2010-11 India EBITDA • Promoter of BCPL, 1,488 (9% & OPAL ) 1,354 22% FY 2009-10 FY 2010-11 Customer Preferred Brands – 02/06/2011 Glex & Glene 17 17

  18. Slide 18: Liquid Hydrocarbon Segment

    Liquid Hydrocarbon Segment (` in Cr) Turnover • Value addition in (2)% 9% 2,833 Gas Value Chain 2,786 • 7 Processing Plants across India • Cap. ~ 1.4 MMTPA FY 2009-10 FY 2010-11 • Cooking LPG very EBITDA robust growth 696 (17)% 10% 579 FY 2009-10 FY 2010-11 Current High Product Prices will deliver t

  19. Slide 19: Gas demand and supply, 2015

    Gas demand and supply, 2015 Imports Domestic supplies 387 (MMMSCMD) High Medium 77 311 2010 year Low 46 276 35 187 end consumption 59 230 25 111 76 29 55 171 30 26 175 200 200 Potential 200 145 demand, 2015 ▪ Industries ▪ Refineries ▪ Peaking ▪ Power ▪ CNG ▪ Industries power ▪ New fertilizer transpo

  20. Slide 20: Projected net gas production from domestic sources, 2015

    Projected net gas production from domestic sources, 2015 215+ 20+ 30+ 16 70+ (MMMSCMD) 145 20 5 8 50-60 65 145 ONGC, RIL Other Supply Declining CBM New RIL Additional 2015 OIL KG-D6 private in 2010 fields fields additional potential total ▪ DGH expects domestic production to be approximately 200 mms

  21. Slide 21: Pipeline Projects

    PIPELINE PROJECTS TAPI P/L FROM PAKISTAN CHAINSA – DADRI – NANGAL JHAJJAR – BAWANA – IPI PL HISAR P/L NANGAL P/L BHATINDA FROM PAKISTAN Hisar DELHI GREP II Jhajjarr BAREILLY GURGAUN AURAIYA LUCKNOW MATHANIA AGRA DISPUR JAISALMER JAGDISHPUR DVPL PH-II BARMER KANPUR PATNA GWALIOR PHOOLPUR KOTA JHANSI

  22. Slide 22: New Pipeline Capacity Built-up

    New Pipeline Capacity Built­up Pipeline Projects Approved Capacity Length Anticipated Completion (Status) Cost (` Cr) (MMSCMD) (KM) DVPL PIPELINES – PHASE 5837 24 to 78 610 Mainline compressor commissioned at Jabhua and II Incl. compressor at Vijaipur. Standby machine at Jhabua by June 11 Jhabua & V

  23. Slide 23: New Spur Pipelines Capacity Built-up

    New Spur Pipelines Capacity Built­up Pipeline Projects Approved Capacity Length Cost (` Cr) (MMSCMD) (KM) Karanpur Moradabad Kashipur Rudrapur 252 2.5 185 pipeline Focus energy Consortium to RRUVNL 99 1.2 90 (Ramgarh Terminal) (Commissioned) Capacity Augmentation of Agra & 200 1.25 to 2.75 71 Feroza

  24. Slide 24: Projected Capex

    Projected Capex Planned Capex from 2011­12 to 2013­14 `28,641 Cr • Click to edit Master text styles 15,000 (` in Cr) % share of Capex • Second level 12,500 25% 11327 9622 10,000 • Third level 7692 39% 7,500 • Fourth level 5,000 • Fifth level 2,500 29% 7% 0 2011-12 2012-13 2013-14 Pipeline E&P Petro

  25. Slide 25: Expected Capex Funding

    Expected Capex Funding Planned Borrowings from 2011­12 to 2013­14 ~ `13,675 Cr • Click to edit Master text styles 10,000 (` in Cr) Borrowing Portfolio • Second level 8,000 2% • Third level 6,000 7,100 46% 34% • Fourth level 4,000 • Fifth level3,325 3,250 18% 2,000 ECA Bonds OIDB Term Loan 0 2011-12

  26. Slide 26: E&P Activities

    Total Blocks 28 (including 1 CBM block) Onshore Blocks 7 Offshore Blocks Deep 15 & Shallow ­ 5 CBM Blocks 1 (Dewatering in progress) Major Operators ONGC, GSPC, Daewoo, Petrogas, Hardy, Eni, Jubilant, Dart Energy Net investment `2305 Cr (upto 31.03.2011) Hydrocarbons Discoveries Hydrocarbons Discove

  27. Slide 27: GAIL's Future Planned Growth

    GAIL’s Future FY 2010­11 FY 2013­14 NG Trans Pipeline (KM) 8000 + 14000 + NG Trans Capacity (MMSCMD) 170 + 300 + Polymer Capacity (incl BCPL) ~0.9 ~0.4 (MMT) (1.6 in FY 14­15) E&P Revenue Generating Blocks 3 1 (Nos.) (5 in FY 14­15) Retail Gas Presence (No of Cities) 15 ~50 Power (MW) – Renewable So

  28. Slide 28: Visible Growth drivers

    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 / Mi

  29. Slide 29: Visible Growth drivers

    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 0.28 MMTPA by 2013 – Pata Expansion to 0.9 MMTPA by 2014 – Participation in OPaL, Dahej Project with ONGC – 1.1 mmtpa ethylene

  30. Slide 30: Naturally GAIL

    GAIL (India) Ltd. 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

  31. Slide 31: Thank You

    GAIL (India) Limited Thank You

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