#1INDRAPRASTHA GAS LIMITED INDRAPRASTHA GAS LIMITED INDRAPRASTHA GAS LIMITED An Overview February 2019 1#2Background Incorporated in 1998, IGL is a Joint Venture of GAIL and BPCL. Govt. of NCT of Delhi is also holding 5% equity. The company was listed in stock exchange in December 2003. IGL started its operations in NCT of Delhi in 1999 with only 9 CNG stations and 1000 PNG consumers Today IGL has its operations in NCT of Delhi, Noida, Greater Noida, Ghaziabad and Rewari with 463 CNG stations, 10.29 lacs residential consumers and ~4100 industrial / commercial customers Fuelling the largest CNG Bus fleet in the World 2#38% 1% 9% Shareholding Pattern % HOLDING Promoters -45% (GAIL-22.5% & BPCL-22.5%) Government of NCT of Delhi - 5% Foreign Institution Investors -20% Mutual Funds - 9% Indian Financial Institutions & Banks - 1% Insurance Companies -8% □ Public / Others - 12% 12% 20% 5% 45% 3#4Management ■ IGL Board is fairly well diversified with ten members including two each from GAIL and BPCL, one from Govt. of Delhi and five independent directors (Presently there are two independent directors). ■ The company is beneficiary of its strong parentage and gets significant support from GAIL and BPCL relating to operations and management. By virtue of the presence of Govt. of Delhi as a minority shareholder, the company gets support for speedy administrative approvals. ■ The company has highly qualified senior management personnel with several years of experience in Oil & Gas sector. 4#5Areas of Operation ■ Delhi: National capital of India has huge demand potential: ■ where public transport vehicles have to necessarily run on CNG in view of the directions of the Hon. Supreme Court of India. ■ has the highest number of private cars compared to any other city of India thickly populated having large number of residential & commercial complexes and hospitals etc.. ■ Noida: Most advanced city of state of Uttar Pradesh having huge potential for CNG, PNG-Residential and commercial volumes. ■ Greater Noida and Ghaziabad: Residential cum Industrial towns of Uttar Pradesh having huge potential demand for PNG Residential, Commercial and Industrial. Rewari, Dharuhera & Bawal: Bawal being an Industrial town of Haryana having huge potential demand for Industrial PNG. 5#6New Geographical Areas IGL has started sale of CNG at four OMCs outlets in Rewari and sale of PNG to Domestic households. IGL plans to add ~6 more CNG outlets and to connect 1500 Domestic households in FY19. Supply of gas has been started in areas of Bawal and Dharuhera. IGL has recently got entry into Gurgaon to lay infrastructure; Initially the permission has been given for the area between west side of Sohna Road and NH 8 in Gurugram district. IGL plans to add ~4 CNG outlets in FY19. Matter regarding take over of supplies by IGL in Gurgaon District is in progress. IGL was authorised for Karnal geographical area in the 8th round of bidding by PNGRB. IGL plans to add ~3 CNG outlets in FY19. IGL has been authorised for Meerut, Muzaffarnagar & Shamli geographical area in the 9th round of bidding by PNGRB. CO 6#7Segment & Current Sales Volume Mix CNG 75% Comm. Ind. 11% Sale to other CGD Cos. 8% Residential 6% 7#8Sales Volumes Figures in MMSCM FY14 FY15 FY16 FY17 FY18 DEC 18 CNG 1,028 1,073 1,123 1,123 1,269 1,412 1,188 PNG 356 330 342 406 479 403 Total 1,384 1,403| 1,465 1,465 1,675 1,891 1,591 Sale Daily Average 3.79 3.84 4.00 4.59 5.18 5.79 Sale 8#9Gas Sourcing ■ Firm allocation from Govt. of India of domestic gas for the entire consumption of CNG and PNG Domestic segment. Lower prices of domestic gas makes the economics of switching to gas more attractive driving growth in CNG & PNG- Domestic segments which constitute around 81% of the total sales volumes. ■ Have tied up long term contract for RLNG to meet PNG Industrial & Commercial demand. ■ Buying short term gas from the open market (Shell, IOCL, PLL, GSPC, BPCL etc.). 9#10APM 62% Current Gas Mix Non-APM 5% PMT 20% RLNG 13% 10 10#11Growth in CNG March' March' March' March' March' Dec' PARAMETER UNIT 14 15 16 17 18 18 No. of CNG Nos 325 326 340 421 446 463 Stations Compression (Lakh 66.17 68.49 68.59 74.00 76.05 78.12 Capacity kg/day) Average CNG (Lakh 21.20 22.07 22.79 25.24 27.89 31.06 Sale kg/day) 11#12CNG Station Network Figures in numbers DTC/ STATION IGL OMC TOTAL UPSRTC Online 144 61 211 416 Daughter Booster 0 0 45 45 Daughter 0 0 2 2 Total 144 61 258 463 12#13CNG Vehicles Figures in numbers March March March March March Dec '14 '15 '16 '17 '18 '18 Buses Auto/LG V/RTV 19566 19421 19272 21500 22900 23950 220391 241540 259500 12 277972 294900 303800 Cars/Taxi 514801 556156589801 Total 754758 8 8 65 817117 868573 672215 709900 744400 971687 1027700 1 107 2150 * Estimated figures based on various sources. 13#14PNG Users March March March March March Dec CATEGORY UNIT '14 '15 '16 '17 '18 '18 Domestic Lakhs 4.59 5.61 6.36 7.42 9.23 10.29 Commercial/ Industrial Nos 1876 2292 2580 2870 3593 4095 14#15PNG Network Figures in kilometers March March March March March Dec CATEGORY '14 '15 '16 '17 '18 '18 Steel 658 8 681 707 778 919 993 Pipeline MDPE 8438 8966 9444 9940 10755 11618 Pipeline Total 9096 9647 10151 10718 11674 12611 15#16Standalone Financial Data Rs./Crores FY14 FY15 FY16 FY17 FY18 # Dec 18 # GROSS TURNOVER 4319 4049 4025 4164 4994 4643 Total Comprehensive Income 360 438 419 570 671 561 EPS (Rs./share) 26 31 30 41 10 8 Book Value (Rs./Share) 126 157 180 209 50 50 56 # Equity shares of Rs.10 each has been split into Five shares of Rs. 2 each since Nov'17 16#176000 Cumulative Capex (Rs. in crores) 4971 5000 4521 3991 4000 3654 3430 3236 3010 3000 2000 1000 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 Dec'18 17#18Dividend ●Dividend Policy provides liberal payout •Track record of last five years Year % of equity FY 14 55 FY 15 60 FY 16 60 FY 17 85* FY 18 100 *Including interim dividend 18#19Acquisition of Equity in Other CGDs IGL has acquired 50% equity share capital of Central UP Gas Limited (CUGL) for Rs. 68 crores. CUGL is engaged in the CGD in the cities of Kanpur and Bareilly, Unnao & Jhansi in Uttar Pradesh. IGL has acquired 50% equity share capital of Maharashtra Natural Gas Limited (MNGL) at a price of Rs.38 per equity share aggregating to Rs. 190 crores. MNGL is engaged in the CGD in the city of Pune and nearby areas. The above has resulted in diversification of geographical areas and consolidated earnings of IGL to improve by approx. 10 %. 19#20Consolidated Results The standalone and consolidated financial results for the FY 2017-18 with the Associates i.e. CUGL & MNGL on equity method considering 50% share in profit are as under. Parameter Unit Standalone Consolidated PAT Rs. In 670.58 721.44 Crores EPS * Rs./Share 9.58 10.31 *Based on Equity shares of Rs.10 each which has subsequently been split into Five shares of Rs. 2 each since Nov'17 20 20#21Growth-Strategy ■ Improve/Augment CNG infrastructure/Stations in Delhi & NCR to meet the additional demand in view of conversion of private cars and improvement in public transport system Improve penetration of PNG business: Penetration of network in all charge areas Target Industrial/Commercial customers in both Delhi & NCR Bidding for new cities ■ Synergy Keeping pace with the changing the changing environment Automation, Better Infrastructure - 21#22• • Credit Strength Healthy profitability with strong cash generations from operations. Regained the status of zero debt company. . Comfortable working capital position. ICRA Limited (An associate of Moody's Investors Service) has reaffirmed highest credit ratings of AAA (Stable) for term loan and A1+ for short term loan. 22#23■ Gas price Risks & Mitigations > CNG & PNG-Residential prices remains competitive vis-à-vis petrol and subsidised LPG in view of allocation of domestic gas > Spot/short term gas is purchased to reduce the weighted average cost of gas for I/C segment. ■ Sourcing of gas ➤ Firm allocation from Govt. of India for domestic gas - buying from GAIL. ➤ Buying Long term TRLNG gas from GAIL/BPCL Buying short term gas from the open market i.e. IOCL, GSPCL, PLL & Shell etc. 23 23#24DDA Case Delhi Development Authority (DDA) has raised a total demand of ₹155.64 crores during 2013-14 on account of increase in license fees in respect of sites taken by the Company on lease from DDA for setting up CNG stations in Delhi. The increase in license fees was related to the period 1 April 2007 to 31 March 2014. The Company has filed a writ petition on 11 October 2013 before the Hon'ble Delhi High Court against the demand raised by DDA as the revised license fees has been increased manifold and made applicable retrospectively from financial year 2007-08. Further, DDA vide communication dated 29 August 2016 has revised the total demand to #330.73 crores for the period upto 31 March 2016. The matter is pending in the Hon'ble High Court of Delhi and the Company is of the view that such demand is not tenable and accordingly no provision has been made for this demand raised by DDA till 31 March 2016 in the books of accounts. 24 24#25Safe Harbor Statement ■ This presentation has been prepared by Indraprastha Gas Limited solely for providing information about the company. ■ The information contained in this presentation 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. 25 25#26THANK YOU 26 26