0 MAHANAGAR GAS LIMITED MAHANAGAR GAS Ref: MGL/CS/SE/2020/342 - PDF document

A 2 0 MAHANAGAR GAS LIMITED MAHANAGAR GAS 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 - 400 001 Mumbai - 400051 Scrip Code/Symbol: 539957; MGL Script Symbol: MGL Sub: Regulation 30 of SEBI (LODR) Regulations, 2015 — Investors Presentation. Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith an Investors Presentation. You are requested to take the above information on your records and disseminate the same on your website. Thanking you, Yours sincerely, For z Mahanagar Gas Limited Sa l � n Srivastava C6mpany Secretary and Compliance Officer End.: As above „ N •47 "'t Regd. Office: MGL House, Block G-33, Bandra - Kuria Complex, Bandra (East), Mumbai - 400 051 T + 91 22 6678 50001E info@mahanagargas.com 1W www.mahanagargas.comICIN L40200MH1995PLC088133 An ISO 9001, 14001 & OHSAS 18001 Certified Company

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

MGL : An Introduction 2

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 Cost-effective availability of domestic natural gas with sourcing flexibility Gas Availability Strong CNG supplied to about 0.75 mn vehicles and PNG connectivity to approximately 1.48 Customer mn domestic households (2) Base Infrastructur Over 5,600 kms of pipeline (2) with infrastructure exclusivity (3) and 256 CNG filling stations (2) e Exclusivity Commitment Safety management systems to seek to ensure safe, reliable and uninterrupted to Health and distribution of gas Safety Revenue CAGR (FY15-20): 7.2% Robust Return on Net Worth (FY20): 26.87% Financial Total cash balance of INR 13.5 bn (4,5) Performance Net worth of INR 29.53 bn (5) Blue-Chip GAIL (India) Ltd. (”GAIL”) (32.5%) Government of Maharashtra (“GoM”) (10.0%) Shareholder Public and Other (57.5%) s 3 Note: (1) Established in 1995; (2) As of May 31, 2020; (3) Infrastructure exclusivity at least until 2020 in Mumbai, 2030 in its Adjoining Areas and 2040 in Raigad; (4) Includes Current Investments. (5) As of March 31, 2020

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 As of March 110% and BSE 31, 2020 allocation of domestic gas Pipeline PE – 3,800 km & Steel - 380 km 3rd CGS at Taloja & 4th CGS at 150th CNG Ambernath dispensing station 2nd CGS at Mahape Natural gas supply & transpo. contract with GAIL Net Worth – INR billion 0.76 97-98 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 4

Areas of Operation Mira- Business Operations Bhayander, Navi Mumbai, Thane City, Kalyan, Taloja, Raigad District Mumbai & Ambernath, (adjacent to Areas of Greater Mumb Bhiwandi Dombivli, existing area of Operation ai Ulhasnagar, operation) Mira-Bhayander Badlapur, Kalyan Bhiwandi, Thane Dombivily Kharghar and Panvel Ambernath Thane District Mumbai Badlapur 20.7 mn population and 3.2 mn households (1) Population (mn) Navi Mumbai Wadala Taloja Kharghar Karjat Infrastructure Panvel 2020 2030 2040 Exclusivity Uran Khalapur Pen MGL Pipeline (2) 5631 kms Alibaug Raigad Arabian Sea Sudhagad MGL PNG ~ 1.48 mn Floha Connections (2) Tala Mangaon MGL CNG 256 Stations (2) Mahad Shrivardhan MGL CNG ~ 0.75 mn Poladpur Customers (2) 5 (1) Figures for Mumbai Metropolitan Region – Total population and technically feasible households out of total population; (2) As of May 31, 2020

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 Operational and Financial Performance  Focused Growth Strategy in Place 6

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 is one-third of the global average , indicating potentially higher energy demand in the long-term (1) • Environmentally clean fuels, such as natural gas, are expected to play a dominant role in India's economic growth in the coming years …With Increased Government Focus CGD Sector to Grow at a Faster Pace as Natural Gas becomes a Preferred Fuel (2) Total CGD Demand (mmscmd) Environmental Initiatives 2030E 69 PNG and CNG Corridor CAGR 12% 2025E 38 CGD Expansion in New Cities 2020E CAGR 9% 25 2015 CAGR 11% 15 7 Source: (1) BP Statistical Review of World Energy June 2020; (2) Bureau of Economic Geology (BEG) / Center for Energy Economics (CEE) China/India Gas Demand, CGD demand for 2015 – open government data (OGD) platform India

Attractive Fuel Economics CNG Retains its Price Competitiveness vs. Other Fuels Comparison of Alternative Fuel Costs Commercial PNG Favorably Priced vs. Alternate Fuels Particulars UoM Particulars INR / kg or INR / L Differential (2) PNG (4) CNG INR/SCM 35.37 47.95 (1) Differential (3) 39% Commercial LPG 62% Diesel INR/Kg 57.21 78.83 (1) (4) differential Petrol PNG INR/MMBTU 1048 87.19 (1) ~10% Commercial LPG INR/MMBTU 1165 PNG Provides Savings with respect to Non-subsidized • LPG Price Advantage Number of Subsidized/ Non Subsidized Cylinders Natural gas provides economic benefits over most alternative liquid fuels INR / Year 12/0 9/3 6/6 0/12 LPG • 6804 6840 6876 6948 Fuel Efficiency CNG vehicles typically enjoy higher fuel efficiency PNG 6468 6468 6468 6468 • Payback Period % Difference 4.9% 5.4% 5.9% 6.9% Lower running costs result in lower payback With gradual phasing out of subsidized LPG cylinders by period and savings Government, consumers will be incentivized to purchase PNG due to significant savings Note: (1) Based on prices prevailing in Mumbai as on June 30 th , 2020, (2) Mileage of CNG LCV – 10 km/ kg, Diesel LCV – 10 km/ ltr (3) Mileage of CNG Car – 26 km/kg, Petrol car – 18 kms/ ltr ; (4) Based on prices prevailing in Mumbai as on June 2020 8

Diversified Sourcing Strategy Industrial / Commercial PNG CNG & Domestic PNG Term Spot N-APM APM Source RLNG RLNG Western Offshore Western offshore  BPCL  GAIL MoPNG  BGIES  GSPCL  Hazira LNG Suppliers  HPCL  PLL  IOCL GAIL  SEMTIPL  TPL  Domestic supply agreement - MoPNG allocates gas for entire requirement of CNG and domestic PNG under Administered Price Mechanism (APM),  Purchase of imported RLNG for industrial/ PMT and Non-APM Agreements. commercial PNG customers  Allocation of 110% of consumption in Allocation  Mix of spot and term contracts previous 6 months to be compulsorily Policy  Brent supplied by GAIL and to be only used for crude prices have recently the domestic PNG & CNG segments increased.  Price to be fixed on 6 monthly basis (market linked – US$ 2.39 / MMBTU on GCV basis (1)  Assured supply of gas for priority sector requirement  Priority given to CGDs under new policy 9 Note: (1) Applicable from April 01, 2020 to September 30, 2020.

Diversified Sourcing Strategy Priority Segment Forms Majority 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% 7.6% • 6.1% Distribution Majority of MGL‟s sales are from Priority Sector CNG Sales Domestic PNG Commercial PNG Industrial PNG Sales Sales Sales Allocation vs Sales (Domestic PNG + CNG) – Robust gas availability 2.89 2.69 2.53 2.39 2.28 2.07 In MMSCMD 2.55 2.55 2.36 2.27 2.14 2.06 114% 105% 107% 106% 106% 101% FY15 FY16 FY17 FY18 FY19 FY20 Priority Segment Allocation Priority Segment Sales/ Demand Priority Allocation as a % of Priority Sales With revision of the MoPNG Guidelines in 2014, priority sector requirements are being met with reducing dependence on sourcing spot RLNG 10

Infrastructure in place Extensive Supply Network Built Over 20 Years Asset Base • Infrastructure Exclusivity CNG Customer Base (3) Fixed Asset of INR 25.39  Mumbai: Up to 2020 Bn (1) ~0.75 Mn  Adjoining Areas: Up to 2030 Capex for 2020 INR 2.9 Bn(2)  Raigad: Up to 2040 Enablers 256 CNG filling stations (3) PNG Customer Base (3) 182 - OMCs ~ 1.48 Mn 74- MGL & its Franchisees • Tariff Flexibility  New operator can use MGL’s Pipeline and CGS (3) pipeline network only on Over 5600 kms of payment of transportation tariff pipeline and 5 City Gate Stations MGL has established a widespread network and plans for expansion to enter into new areas and increase penetration in existing areas 11 Note: (1) As on March 31, 2020, Includes purchase of fixed assets, including intangible assets, capital work in progress and capital advances; (2) Lease Contract required to be treated as asset under „Right to Use Asset‟ of Rs.1.18 bn as per AS 116. (3) As on May 31, 2020