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MAHANAGAR GAS LIMITED MAHANAGAR (GAIL, Govt. of Maharashtra & BGAPH Enterprise) GAS Ref: MGL/CS/SE/2018/210 Date: November 19, 2018 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 to be shared with Analyst/Institutional Investors. You are requested to take the above information on your records and disseminate the same on your website. Thanking you, Yours sincerely, For Mahanagar Gas Limited Alok Mishra Company Secretary and Compliance Officer Encl.: As above Regd. Office: MGL House, Block G-33, Bandra - Kuria Complex, Bandra (East), Mumbai - 400 051. I T +91 22 6678 5000 F +91 22 2654 0092 I E info@mahanagargas.com i W www.mahanagargas.com CIN No. L40200MH1995PLC088133 I An ISO sow, 14001 & OHSAS 18001 Certified Company PRESENTATION TO INVESTORS 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 Raigad Market with more than 23 year track record in Mumbai (1) Low-Cost Gas Cost-effective availability of domestic natural gas with sourcing flexibility Availability Strong CNG supplied to over 0.65 mn vehicles and PNG to approximately 1.19 mn domestic Customer households(2) Base Infrastructure Over 5,150 kms of pipeline(2) with infrastructure exclusivity(3) and 223 CNG filling stations(2) Exclusivity Commitment Safety management systems to seek to ensure safe, reliable and uninterrupted distribution to Health and of gas Safety Robust Revenue CAGR (FY13-18): 8.1% Return on Net Worth (FY18): 24.30% Financial Total cash balance of INR 7.8 bn(4,5) Performance Net worth of INR 20.95 bn(5) BG Asia Pacific Holding Pte. Ltd. (”BGAPH”) (10%) Blue-Chip GAIL (India) Ltd. (”GAIL”) (32.5%) Shareholders Government of Maharashtra (“GoM”) (10.0%) Public (47.5%) Note: (1) Established in 1995; (2) As of October. 31, 2018; (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 2018 3 Our Journey : Record of Growth and Excellence Started commercial 200th CNG operations dispensing in Raigad station Listing on NSE and BSE New GA Raigad 110% Net Worth – allocation INR billion 20.95 of Pipeline domestic PE – 3,800 gas As of March 31, 2018 km & 3rd CGS at Steel - 380 Taloja & km 4th CGS at Ambernath 150th CNG dispensing station 2nd CGS at Mahape Pipeline PE - 2,500 km & Natural gas Steel - 250 supply & km transportation contract with GAIL Net Worth – INR billion 0.76 97-98 08-09 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 4 Areas of Operation Business Operations Mira-Bhayander, Navi Mumbai, Thane City, Kalyan, Taloja, Raigad District Ambernath, Areas of Mumbai & (adjacent to Bhiwandi Dombivli, Operation Greater Mumbai existing area of Ulhasnagar, operation) Mira-Bhayander Badlapur, Kalyan Bhiwandi, Thane Dombivily Kharghar and Panvel Ambernath Mumbai Thane District Badlapur (1) Navi Mumbai Population (mn) 20.7 mn population and 3.1 mn households Wadala Taloja Kharghar Karjat Infrastructure Panvel 2020 2030 2040 Uran Exclusivity Khalapur Pen MGL Pipeline(2) 5150 kms Alibaug Raigad Arabian Sea Sudhagad MGL PNG ~ 1.19 mn Floha Connections(2) Tala Mangaon MGL CNG 223 Stations(2) Mahad Shrivardhan MGL CNG Poladpur ~ 0.65 mn Customers(2) 5 (1) Figures for Mumbai Metropolitan Region – Total population and technically feasible households out of total population; (2) As of Oct. 31, 2018. 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 2017(1) • India’s primary energy consumption has more than doubled between 2000 and 2017, reaching ~754 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 CGD Sector to Grow at a Faster Pace Post 2018 as Natural Gas becomes a …With Increased Government Focus Preferred Fuel (2) Total CGD Demand (mmscmd) Environmental Initiatives 2030E 69 PNG and CNG Corridor 2025E 38 CAGR 12% 2020E 25 CAGR 9% CGD Expansion in New Cities 2018 23 CAGR 4% 7 Source: (1) BP Statistical Review of World Energy June 2018; (2) April 2017, Bureau of Economic Geology (BEG) / Center for Energy Economics (CEE) China/India Gas Demand, PPAC Consumption Data for FY17-18 Attractive Fuel Economics CNG Retains its Price Competitiveness vs. Other Fuels Comparison of Alternative Fuel Costs Commercial PNG Favorably Priced vs. Alternate Fuels Particulars INR / kg or INR / L Particulars UoM CNG 49.61 (2) PNG (4) INR/SCM 45.06 (3) 34% (4) Diesel 75.53 (1) % Commercial LPG INR/Kg 77.00 59 Differential Differential Petrol 82.50 (1) Differential PNG INR/MMBTU 1336 ~15% Commercial LPG INR/MMBTU 1568 differential PNG Provides Savings with respect to Non-subsidized LPG • Price Advantage Number of Subsidized/ Non Natural gas provides economic benefits over most Subsidized Cylinders alternative liquid fuels INR / Year 12/0 9/3 6/6 0/12 LPG 6061 7286 8511 10962 • Fuel Efficiency CNG vehicles typically enjoy higher fuel efficiency PNG 6424 6424 6424 6424 • Payback Period % Difference -6% 12% 25% 41% Lower running costs result in lower payback period and savings With gradual phasing out of subsidized LPG cylinders by Government, consumers will be incentivized to purchase PNG due to significant savings 8 Note: (1) Based on prices prevailing in Mumbai as on November 15, 2018, (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 October 2018 Attractive End Market MGL GAs Market Size and Penetration as on Oct. 31, 2018 (1) CNG Vehicle and House holds Restaurants (In Mn.) (Nos.) 5 37% 40% 32% 12,000 4 29% penetration 3.2 30% 3 2.01 20% 2 1.19 1 0.65 10% 0 0% 3,502 CNG Domestic PNG Market Size (Mn) Penetration (Mn.) % Penetration Market Size (Nos.) Penetration (Nos.) Industrial & Bulk Commercial (Nos. & Volume in ‘000 SCMD) 680 51% penetration (vol.) Low penetration in areas of operations with 534 high likelihood of growth 349 246 Regulatory environment favorable for Market Size Market Size Penetration Penetration managing profitability (Nos.) (Vol.) (Nos.) (Vol.) Remark : The Market size consists of alternate fuel (excluding solid fuels) 9 (1) Market Size excludes diesel cars and 2 wheelers Diversified Sourcing Strategy CNG & Domestic PNG Industrial / Commercial PNG APM Term Non-APM Source APM Non-APM PMT Spot RLNG Western KG Basin (CNG + Dom. PNG) Ind. offshore RLNG MoPNG • BPCL • GAIL • BGIES • GSPCL Suppliers • Hazira LNG • HPCL • PLL • IOCL GAIL • SEMTIPL • Domestic supply agreement - MoPNG allocates gas for entire requirement of CNG and domestic PNG under Administered Price Mechanism (APM), PMT and Non-APM • Purchase of imported RLNG for industrial/ Agreements. commercial PNG customers Allocation • Allocation of 110% of consumption in • Mix of spot and term contracts Policy previous 6 months to be compulsorily supplied by GAIL and to be only used for the • Brent crude prices have recently increased. domestic PNG & CNG segments • Price to be fixed on 6 monthly basis (market linked – US$ 3.36 / MMBTU on GCV basis (1) • Assured supply of gas for priority sector requirement • Priority given to CGDs under new policy 10 Note: (1) Applicable from October 01, 2018 to March 31, 2019. Diversified Sourcing Strategy Priority Segment Forms Majority 73.76% FY 19 (Till Oct’18) Sales Composition • Allocation 10% over and above the 100% requirement • Pricing APM price significantly lower than market price of imported natural gas 12.53% 6.05% 7.66% • 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 Reducing Dependence on Non APM/Spot/Term RLNG 2.64 2.53 2.39 2.28 2.53 2.07 2.36 2.27 104% 2.14 107 % 0.45 0.43 0.41 2.06 106 % 0.36 0.38 0.39 In MMSCMD In 106% 101% FY15 FY16 FY17 FY18 FY19 (Till Oct'18) FY14 FY15 FY16 FY17 FY18 FY19 (Till Oct'18) Priority Segment Allocation Priority Segment Sales/ Demand Volume in MMSCMD 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 11 Infrastructure in place Extensive Supply Network Built Over 20 Years Asset Base CNG Customer Base(3) • Infrastructure Exclusivity Fixed Asset(1) of INR 19.69 Bn ~0.65 Mn Mumbai: Up to 2020 Capex(2) of INR 2.7 Bn Adjoining Areas: Up to 2030 Raigad: Up to 2040 Enablers 223 CNG filling stations(3) PNG Customer Base(3) 159 - OMCs ~ 1.19 Mn 64 - MGL & its Franchisees • Tariff Flexibility Pipeline and CGS(3) New operator can use MGL’s pipeline network only on payment Over 5150 kms of 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 Note: (1) As on September 30th , 2018, Includes purchase of fixed assets, including intangible assets, capital work in progress and capital advances; (2) For FY 2017-18; (3) As on Sept.