MAHANAGAR GAS LIMITED GAIL, Govt. of Maharashtra & BGAPH Enterprise MAHANAGAR GAS Ref: MGL/CS/SE/2019/279 Date: August 23, 2019 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 presentation shared with Analyst/Institutional Investors. You are requested to take the above information on your records and disseminate the same on your website. For Mahanagar Gas Limited l G A < MUMBAI (9 71 Arvind Kumar Company Secretary and Compliance Officer Encl.: As above RIEN Regd. Office: MGL House, Block G-33, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 T+ 91 22 6678 5000 I F +91 22 2654 0092 I E info@mahanagargas.com J W www.mahanagargas.com CIN L40200MH1995PLC088133 An ISO 9001, 14001 & OHSAS 18001 Certified Company
PRESENTATION TO INVESTORS June-2019 1 www.mahanagargas.com
MGL : An Introduction 2
Raigad; (4) Includes Current Investments. (5) As of March 31 2019 Safety GAIL (India) Ltd. (”GAIL”) (32.5%) BG Asia Pacific Holding Pte. Ltd. (”BGAPH”) (Now a Royal Dutch Shell Co.) (10%) Government of Maharashtra (“GoM”) (10.0%) Public (47.5%) Commitment to Health and Safety management systems to seek to ensure safe, reliable and uninterrupted distribution Blue-Chip of gas Strong Customer Base CNG supplied to about 0.71 mn vehicles and PNG connectivity to approximately 1.32 mn domestic households (2) Note: (1) Established in 1995; (2) As of June 30, 2019; (3) Infrastructure exclusivity at least until 2020 in Mumbai, 2030 in its Adjoining Areas and 2040 in Shareholders Net worth of INR 23.99 bn (5) Infrastructure Market Return on Net Worth (FY19): 24.4% Revenue CAGR (FY14-19): 8.2% Performance Financial Robust Attractive Exclusivity Total cash balance of INR 9.5 bn (4,5) Cost-effective availability of domestic natural gas with sourcing flexibility Availability Low-Cost Gas with more than 24 year track record in Mumbai (1) Sole authorized distributor of CNG and PNG in Mumbai, its Adjoining Areas and Raigad One of the largest CGD Companies in India Over 5,367 kms of pipeline (2) with infrastructure exclusivity (3) and 240 CNG filling stations (2) 3
As of March 31, 2019 Our Journey : Record of Growth and Excellence Net Worth – INR billion 24.0 Started Commercial operations in 200th CNG Raigad dispensing station New GA Raigad Listing on NSE 110% and BSE 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 4
Areas of Operation Uran Raigad Bhiwandi Kalyan Badlapur Thane Mira-Bhayander Arabian Sea Alibaug Pen Khalapur Karjat Taloja Kharghar Panvel Sudhagad Mumbai Navi Mumbai ~ 0.71 mn Customers (2) MGL CNG 20.7 mn population and 3.1 mn households (1) Population (mn) Ambernath Shrivardhan Floha Poladpur Mahad Dombivily Wadala Mangaon Tala Thane District 2040 (1) Figures for Mumbai Metropolitan Region – Total population and technically feasible households out of total population; (2) As of June 30, 2019. Navi Mumbai, Business Operations MGL Pipeline (2) 5367 kms MGL PNG Connections (2) ~ 1.32 mn MGL CNG Stations (2) 240 Areas of Operation Mumbai & Greater Mumbai Mira-Bhayander, Thane City, 2030 Raigad District 2020 Exclusivity Infrastructure operation) existing area of (adjacent to Panvel Kalyan, Taloja, Kharghar and Bhiwandi, Badlapur, Ulhasnagar, Dombivli, Ambernath, 5
Cost Effective Sourcing Strategy Significant Growth Potential Backed by Favorable Industry Conditions Favorable Regulatory environment Underpenetrated Market with Significant Potential for Expansion Focused Growth Strategy in Place Robust Infrastructure in Place to Support Future Growth Strong Operational and Financial Performance The MGL Proposition 6
Environmentally clean fuels, such as natural gas, are expected to play a dominant role in India's economic CAGR 11% Industry Overview energy demand in the long-term (1) India’s per capita energy consumption is one-third of the global average , indicating potentially higher Environmental Initiatives India’s primary energy consumption has more than doubled between 2000 and 2018, reaching ~809 MToe (1) PNG and CNG Corridor India was the third-largest energy consumer in the world after China and US in 2018 (1) CGD Sector to Grow at a Faster Pace as Natural Gas becomes a Preferred CAGR 12% CAGR 9% Total CGD Demand (mmscmd) growth in the coming years 2030E 2025E 2020E 2015 69 38 25 15 …With Increased Government Focus CGD Expansion in New Cities Market Natural Gas and CGD : Attractive Industry • • • • Fuel (2) 7 Source: (1) BP Statistical Review of World Energy June 2019; (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
INR/Kg 1110 Particulars UoM PNG (4) INR/SCM 37.44 Commercial LPG (4) CNG Retains its Price Competitiveness vs. Other Fuels 67.11 PNG INR/MMBTU Commercial LPG Lower running costs result in lower payback period INR/MMBTU 1367 ~19% differential 6/6 Commercial PNG Favorably Priced vs. Alternate Fuels Note: (1) Based on prices prevailing in Mumbai as on August 11, 2019, (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 2019 Number of Subsidized/ Non Subsidized Cylinders INR / Year and savings Payback Period 9/3 Petrol Comparison of Alternative Fuel Costs PNG Provides Savings with respect to Non-subsidized LPG With gradual phasing out of subsidized LPG cylinders by Government, consumers will be incentivized to purchase PNG due to significant savings Particulars INR / kg or INR / L CNG % Difference Diesel 68.66 (1) 77.65 (1) 0/12 24% Differential (2) 54% Differential (3) PNG Price Advantage Natural gas provides economic benefits over most alternative liquid fuels LPG Fuel Efficiency CNG vehicles typically enjoy higher fuel efficiency 12/0 Attractive Fuel Economics 51.99 (1) • 5904 6254 6603 7302 • 6947 6947 6947 6947 • -18% -11% -5% 5% 8
546 30% (In Mn.) 2.01 3.2 0.71 1.32 35% 41% 0% 10% 20% 40% Penetration (Nos.) 0 1 2 3 4 5 CNG Domestic PNG Market Size (Mn) Penetration (Mn.) % Penetration 30% penetration Market Size (Nos.) 696 3,626 284 381 Market Size (Nos.) Market Size (Vol.) Penetration (Nos.) Penetration (Vol.) MGL GAs Market Size and Penetration as on June 30, 2019 (1) Market Size excludes diesel cars and 2 wheelers Low penetration in areas of operations with high likelihood of growth Regulatory environment favorable for managing profitability Remark : The Market size consists of alternate fuel (excluding solid fuels) Industrial & Bulk Commercial (Nos. & Volume in ‘000 SCMD) 55% penetration (vol.) Restaurants (Nos.) 12,000 Attractive End Market CNG Vehicle (1) and House holds 9
Ind. PMT compulsorily supplied by GAIL and to be only used for the domestic PNG & CNG segments CNG & Domestic PNG APM Western offshore Term RLNG Spot RLNG to Source Suppliers Allocation Policy MoPNG Note: (1) Applicable from April 01, 2019 to September 30, 2019. GAIL Non-APM (CNG + Dom. PNG) Non-APM be commercial PNG customers months Non-APM Industrial / Commercial PNG supply agreement - MoPNG 6 and domestic PNG under Administered Price Mechanism (APM), PMT and allocates gas for entire requirement of CNG Agreements. consumption of 110% previous in of Diversified Sourcing Strategy BPCL GAIL BGIES GSPCL Hazira LNG HPCL PLL IOCL SEMTIPL TPL Domestic Purchase of imported RLNG for industrial/ Allocation Mix of spot and term contracts Brent crude prices have recently increased. Price to be fixed on 6 monthly basis (market linked – US$ 3.69 / MMBTU on GCV basis (1) Assured supply of gas for priority sector requirement Priority given to CGDs under new policy 10
Distribution With revision of the MoPNG Guidelines in 2014, priority sector requirements are being met with reducing dependence on Majority of MGL’s sales are from Priority Sector imported natural gas ce of APM price significantly lower than market pri Pricing 10% over and above the 100% requirement Allocation FY 19 Sales Composition sourcing spot RLNG Allocation vs Sales (Domestic PNG + CNG) – Robust gas availability Priority Segment Forms Majority Diversified Sourcing Strategy 73.5% • • 12.7% 7.7% 6.1% • CNG Sales Domestic PNG Commercial PNG Industrial PNG Sales Sales Sales 2.69 2.53 2.39 2.28 In MMSCMD 2.55 2.07 2.36 2.27 105% 2.14 107 % 2.06 106 % 106% 101% FY15 FY16 FY17 FY18 FY19 Priority Segment Allocation Priority Segment Sales/ Demand Priority Allocation as a % of Priority Sales 11
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