GAIL (India) Limited

Analyst Presentation FY 2010-11

2nd June 2011

ThispresentationhasbeenpreparedbyGAIL(India)Ltd(Company orGAIL)solelyforproviding informationabouttheCompany. Theinformationcontainedinthispresentationisonlycurrentasofitsdate.Certainstatements made in this presentation may not be based on historical information or facts and may be "forwardlookingstatements",includingthoserelatingtotheCompanysgeneralbusinessplans andstrategy,itsfuturefinancialconditionandgrowthprospects,andfuturedevelopmentsinits industry and its competitive and regulatory environment. Actual results may differ materially fromtheseforwardlookingstatementsduetoanumberoffactors,includingfuturechangesor developmentsintheCompanysbusiness,itscompetitiveenvironment,informationtechnology andpolitical,economic,legalandsocialconditionsinIndia. This communication is for general information purposes only, without regard to specific objectives,financial situationsand needs of any particular person. Company do notacceptany liabilitywhatsoever,directorindirect,thatmayarisefromtheuseoftheinformationherein. The Company may alter, modify or otherwise change in any manner the content of this presentation,withoutobligationtonotifyanypersonofsuchrevisionorchanges

SafeHarborStatement
02/06/2011 2 2

Vision
Betheleading companyinnaturalgas andbeyondwith globalfocus, committedto customercare,value creationforall stakeholdersand environment responsibility

Mission
Toaccelerateand optimizetheeffective andeconomicuseof NaturalGasandits fractionstothebenefit ofthenational economy

02/06/2011 3

ShBCTripathi Chairman&ManagingDirector
FunctionalDirectors

ShRDGoyal Director(Proj)

ShSLRaina Director(HR)

ShPrabhatSingh Director(Mktg)

ShSVenkatraman Director(BD)

ShPKJain Director(Fin)

GovernmentNominee/IndependentDirectors

ShSudhir Bhargava

ShApurva Chandra

Dr.Vinayshil Gautam

ShRMSethi

ShMahesh Shah

Prof.A.Q. Contractor

ShArun Aganrwal

GAILManagement
02/06/2011 4 4

BGLformed JLPLPhaseII GAILTel AgraFirozabad

Pipelinescompleted: DUPL,DPPL,Thlendi Phulpur,Jagoti Pitampur,Kelaras Malanpur

2008 2009

Continue to Excel
2010 2011

2004

2005

DVPL/GREPII Compressors th 6th Furnace GAILGasFormed 4Citiesawarded

IGLformedPLL formed LPGplant Usar&Lakwa Navratna Status

LPGplant Gandhar E&PForay

1998 1968

2001 2003

Started constructionof onshorepipeline: HBJ(nowHVJ)

GAILincorporatedasa governmentcompany undertheCompanies Act1956.
1984 1968-79

LPGPlants Vijaipur &Vaghodia

st 1st Dividend

1999 1968

5Pipelineauthorization BlockOman CamayProduction CBMForay GasdiscoveryinA1block,Myanmar DVPL&VSPLcommissioned Acquisitionof15%stakeinNatgas IncorporationofGAILGlobalSingapore Pte Acquisitionof9%equitystakeinChina GasHoldings ERPgoeslive

1993 1968-79

1968-79 1995

PataPlant Commissioned StockExchangeListing

1988 Mar 2001 1968-79 1989 Mar 2001 1968-79

MGLformed Firstyearofprofit

1986 1968-79 -

HVJCompleted

MajorMilestones
02/06/2011 5 5

25+Years Baa2/A3 AAA 57%+ 14%+ 12%+ 3800+

02/06/2011

ExperienceinGasPipelines Moodys Foreign/DomesticRating

ICRA&CRISILforBondIssueuptoRs.750Cr. GoIShareholding 10YearsTurnoverCAGR 10YearsPATCAGR ManpowerAsset

Quickfacts
6 6

170MMSCMD+ 1.4+MMT 450+TMT 28 2 20

GasTransmissionCapacity

LHCProductionCapacity PolymerProductionCapacity

E&P/CBMBlocks 100%Subsidiary

PresenceinCountries JVs/Associate/SubsidiaryCompanies

Quickfacts
02/06/2011 7 7

GovernmentofIndia isGAILsmajorityshareholder

The administrative ministry for the purpose of the company is the Ministry of Petroleum & Natural Gas, GoI GoI has no plans to reduce its shareholding in GAIL to below51%.
Shareholding patterns as on 31.03.2011

14.50

12.51

2.42 4.83 0.86 7.54

57.35

GoI

LIC

GDRs

ONGC

IOC

FIIs

Others

ShareholdingPattern
02/06/2011 8 8

TurnoverTrend
FY200102 FY200506 FY201011
9%
14%
13% 10% 18% 2%

11% 1%

14% 2%

9%

11%

` 32,459Cr
` 14,460Cr

` 9,304Cr

57%

59%

70%

NGTrans

LPGTrans

NGTrading

Petro

OLHC

10YearCAGR 14%
02/06/2011 9 9

Profit(PBT)Trend
FY200102 FY200506 FY201011
9%
19%

23%
18%

10% 0%

` 3,277Cr
` 1,802Cr
72%

` 5,240 Cr
52%

48%

23%

15%
2% 4%

5%

NGTrans

LPGTrans

NGTrading

Petro

OLHC

10YearCAGR 12%
02/06/2011 10 10

SegmentalPhysicalPerformance FY1011(Sales)
GasTransmission
MMSCMD
106.74

GasTrading
MMSCMD
81.43

LPGTransmission
000 MT
3,161

10%

117.91

2%

83.23

6%

3,337

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) %
1,101 1,073

OLHC
342
(12 )%

410

420

300

FY 2009-10

FY 2010-11

FY 2009-10

FY 2010-11

FY 2009-10

FY 2010-11

CoreBusiness SustainedGrowth
02/06/2011 11 11

FinancialPerformanceFY201011
(` in Crores)

Sales (Net of ED)

35,000 32,500 30,000 27,500 25,000 22,500 20,000 FY 2009-10 FY 2010-11 5,000 4,500 24,996

Gross Margin (EBITDA)

6,500 6,000 5,500 5,210 5,973

30%

32,459

15%

FY 2009-10

FY 2010-11

PBT
5,500

PAT
3,800
5,240

14%
5,000 4,500 4,000 FY 2009-10 4,578

3,600 3,400 3,200 3,000 3,140

13%

3,561

FY 2010-11

2,800 FY 2009-10 FY 2010-11

02/06/2011

HighesteverSubsidy Rs.2111Cr.inFY201011
12

12

Financials With&WithoutSubsidy
Turnover
35,000 30,000 25,000 20,000 2000 15,000 10,000 5,000 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 4,500 3000 4,000 3,500 3,000 2,500 2,000 1000 1,500 1,000 500 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

Subsidy

TurnoverwithSubsidy

TurnoverwithoutSubsidy

Subsidy

PATwithSubsidy

PATwithoutSubsidy

FY 2010 11 vs. FY 2009-10

Turnover with Subsidy - ` 32459 Cr. (30% YoY) Turnover without Subsidy - ` 34570 Cr. (31% YoY) 02/06/2011 13 PAT with Subsidy - ` 3561 Cr. (13% YoY) PAT without Subsidy - ` 4971 Cr. (24% YoY) 13

GasTransmissionSegment
(` in Cr)

Turnover
CoreBusiness Doublingthe Capacity IncrementalVol. athighertariff Noimpactoflower RILproduction
2,900 2,700 2,500 2,300 2,100

21%
2,926

3,544

3,700 3,500 3,300 3,100 2,900 2,700 2,500

11%

FY 2009-10

FY 2010-11

EBITDA
% 16
2,499 2,908

48%

FY 2009-10

FY 2010-11

02/06/2011

IndiasNo.1GasTransmissionCompany 75%ofIndiasGasTravelthroughourSystem
14

14

GasTradingSegment
(` in Cr)

Turnover
CoreBusiness Doublingthe Capacity MarketingMargin onAPMGas SpotRLNGtoBoost MarketingMargin
374 15,821

% 43

22,654

FY 2009-10

FY 2010-11

70%

EBITDA
% 114
801

13%

FY 2009-10

FY 2010-11

IndiasNo.1GasTradingCompany 02/06/2011 Over50%ofIndiasGasTradedbyGAIL

15

15

LPGTransmissionSegment
(` in Cr)

Turnover
CoreBusiness Transmissionof LPGthro pipelines OnlyPlayerinIndia CookingLPGvery robustgrowth
347
447
1%

6%

475

FY 2009-10

FY 2010-11

EBITDA
4%
360

FY 2009-10

FY 2010-11

6%

PipelineTransmissionofaround1/4th ofthe CountrystotalLPG

02/06/2011 16 16

PetrochemicalSegment
(` in Cr)

Turnover
Diversifiedinto Petrochemical OnlyGasbased plantinNorth India PromoterofBCPL, &OPAL
1,488 FY 2009-10 FY 2010-11

1%
2,904

9%

2,939

EBITDA
(9% )
1,354
22%

FY 2009-10

FY 2010-11

02/06/2011

CustomerPreferredBrands Glex &Glene

17

17

LiquidHydrocarbonSegment
(` in Cr)

Valueadditionin GasValueChain 7ProcessingPlants acrossIndia Cap.~1.4MMTPA CookingLPGvery robustgrowth

Turnover
2,833

(2)%
2,786

9%

FY 2009-10

FY 2010-11

EBITDA
696

(17)%
579

10%

FY 2009-10

FY 2010-11

CurrentHighProductPriceswilldeliverthemargindespite ofHigherSubsidyduetoHighCrudePrices
02/06/2011 18 18

Gasdemandandsupply,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, 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

Largedemandbut sensitivetoprice
19

19

Projectednetgasproductionfrom domesticsources,2015
16
(MMMSCMD)

215+ 70+

20+

30+

145 20
5 8

65

50-60 145

ONGC, 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, there is potential for higher production given a large number of blocks are under evaluation; Assuming 7-9% growth p.a., domestic gas supply could be between 300-330 mmscmd by 2020

Supplyovernextfiveyearsincreasingbutnot expectedtokeeppacewithdemand 02/06/2011 20

20

PIPELINEPROJECTS
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 3.6 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 GAILs Planned Pipeline RILs East West Pipeline LNG Terminal

MANGALORE

CHENNAI

EWPL

KOCHI-KANJIKKOD-BANGALOREMANGALORE P/L
KANJIKKOD
COIMBATORE

TIRUCHCHIRAPALLI

KOCHI 5 mmtpa

TUTICORIN

Map not to Scale

NewPipelineCapacityBuiltup
PipelineProjects
DVPLPIPELINES PHASE IIIncl.compressorat Jhabua&Vijaipur VIJAIPURDADRI PIPELINES(Incl. CompressoratKailaras & Chainsa) DADRIBAWANA NANGALPIPELINE CHAINSAJHAJJAR HISSARPIPELINE JAGDISHPURHALDIA PIPELINE DHABOLBANGALORE PIPELINE KOCHIKOOTTANAD MANGALORE/ BANGALORE TOTAL

Approved Cost(` Cr)

5837

Capacity (MMSCMD)
24to78

Length (KM)
610

AnticipatedCompletion(Status)
MainlinecompressorcommissionedatJabhuaand Vijaipur.StandbymachineatJhabua byJune11 andVijaipurDec11. Vijaipur DadriPipelinecommissioned CompressoratKailaras andChainsa: CommissioningbyDec2011 DadriBawana PipelineCommissioned. Bawana Nangal:CommissioningbyDec2011 Chainsa Sultanpur:Commissioned Sultanpur Neemrana:Commissioned Beingimplementedinphasedmanner 201314 onwards PhaseI Aug2012 PhaseII December2012 PhaseI August2012 PhaseII December2012

4927

20to80

499

2358 1315 7596 4994 3263

31 35 32 16 16

594 349 2050 1414 1126

30290

6642

PlannedCapextotaptheOpportunity
02/06/2011 22 22

NewSpurPipelinesCapacityBuiltup
PipelineProjects Approved Cost(` Cr) 252 99 200 Capacity (MMSCMD) 2.5 1.2 1.25to2.75 Length (KM) 185 90 71 Karanpur MoradabadKashipur Rudrapur pipeline FocusenergyConsortiumtoRRUVNL (Ramgarh Terminal)(Commissioned) CapacityAugmentationofAgra& Ferozabad Region(17kmsectionfrom AgratoFerozabad Commissioned) VijaipurKotaPipelineUpgradationand layingofSpurlines (toChittorgarh etc.) Bawana Nangal spurlines (Uttrakhand & Punjab) TOTAL

463 541 1555

2 4

290 270 906

PlannedCapextotaptheOpportunity
02/06/2011 23 23

ProjectedCapex
PlannedCapexfrom201112to201314

15,000 12,500 10,000

7,500 5,000 2,500

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

`28,641Cr

39%

Pipeline

E&P

Petro

Others

GAILhasahistoryofExcellentProjectManagement toexecutetheProjectwithingiventimeframeandwithoutcostoverrun
02/06/2011 24 24

ExpectedCapexFunding
PlannedBorrowingsfrom201112to201314
10,000

8,000

6,000

4,000

Click to edit Master text styles Second level Third level Fourth level Fifth level
(` in Cr)
7,100
46%

~`13,675Cr

Borrowing Portfolio
2% 34%

3,325

3,250

18%

2,000

0 2011-12 2012-13 2013-14

ECA

Bonds

OIDB

Term Loan

AggressiveCapexPlancallsforBorrowings(Domestic&International) LeverageonGAILsverylowdebtEquityratio(0.12:1)ason31.03.2011
02/06/2011 25 25

TotalBlocks OnshoreBlocks OffshoreBlocks CBMBlocks MajorOperators Netinvestment HydrocarbonsDiscoveries whereappraisal& Developmentactivitiesarein progress Operatorin2blocks CommercialBlock

28(including1CBMblock) 7 Deep15&Shallow 5 1(Dewateringinprogress) ONGC, GSPC, Daewoo, Petrogas, Hardy, Eni, Jubilant,DartEnergy `2305Cr(upto31.03.2011) Hydrocarbons Discoveries in 7 Existing Blocks : Cambay onland, A1 & A3 blocks (Myanmar),Mahanadioffshore,Ankleshwar onland,Cauveryoffshore&TripuraOnland RJONN2004/1 (NELPVI) 2005/1(NELPVII) CrudeoilfromCambayBasin & CYONN

E&PActivities
02/06/2011 26 26

GAILsFuture
FY201011 NGTransPipeline(KM) NGTransCapacity(MMSCMD) PolymerCapacity(incl BCPL) (MMT) E&PRevenueGeneratingBlocks (Nos.) RetailGasPresence(NoofCities) Power(MW) RenewableSources Power(MW) NonRenewable 8000+ 170+ ~0.4 1 15 4.5 FY201314 14000+ 300+ ~0.9 (1.6inFY1415) 3 (5inFY1415) ~50 300 250

PlannedGrowth
02/06/2011 27 27

GrowthDriversfromFY1112&onwards
AdditionalGasavailability:
ONGC NaturalGasSupplyfromBandra,Vasai andCSeries Dabhol RLNG IncrementalRILKGBasinGas AdditionalVolumesfromnewexplorationsBlocks FOCUSENERGY NaturalGasSupplyfromRajasthanfield Longterm/MidTermLNGtieups SpotLNG ongoingbasis

UpsideinPolymer/LiquidHydrocarbonProductPrices ForayintoPowerSector

VisibleGrowthdrivers
02/06/2011 28 28

GrowthDriversfromFY1112&onwards
PetrochemicalBusinessSegment:
EnhancedPataPetrochemicalProductionfromQ4ofFY1011onwards CompletionofBCPLprojectof0.28MMTPA by2013 PataExpansionto0.9MMTPAby2014 ParticipationinOPaL,DahejProjectwithONGC 1.1mmtpaethylene capacity(38%MarketingsharebyGAIL) Exploringsettingup/participationinPetrochemicalprojectsoverseas

CitygasDistribution(CGD)
8JVsalreadyopertaional GAILGasLtd,a100%Subsidaryincorporated
PNGRBAuthorizedGAILGasforFourCGDprojects

Morethan230citiesidentifiedforCGDinaphasedmanner.

VisibleGrowthdrivers
02/06/2011 29 29

GAIL(India)Ltd.
StrongFinancials StrongGoISupport RelativelyNewAssets StrongGasDemand LargeCapexPlansinPlace DominantPosition Transmission

NaturallyGAIL
02/06/2011 30 30

GAIL (India) Limited

ThankYou