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PRESS CONFERENCE ON FINANCIAL RESULTS FY 2007-08

PRESS CONFERENCE ON FINANCIAL RESULTS FY 2007-08. NG/LPG Transmission NG Trading LPG & OLHC Petrochemicals. E&P City Gas Power GAIL Tel. Dr. U D Choubey Chairman & Management Director. Functional Directors.

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PRESS CONFERENCE ON FINANCIAL RESULTS FY 2007-08

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  1. PRESS CONFERENCE ON FINANCIAL RESULTS FY 2007-08 NG/LPG Transmission NG Trading LPG & OLHC Petrochemicals E&P City Gas Power GAIL Tel

  2. Dr. U D Choubey Chairman & Management Director Functional Directors Sh R K Goel Director (Fin) Sh Santosh Kumar Director (Projects) Sh A K Purwaha Director (BD) Sh B C Tripathi Director (Mktg) Sh M R Hingnikar Director (HR) Independent / Government Nominee Directors Dr. A K Kundra Dr. U K Sen Sh Amit Mitra Sh Sundareshan Sh D N Narsimha Raju GAIL ¦ Management The Management Team that will deliver the Strategy

  3. Integrated Natural Gas Company 24 Years of History, Rich Experience & Expertise Consistent Dividend Payer Moody’s Intl. Rating – Baa2 (Foreign) & A3 (Local) Government of India – Majority Stakeholder (57%) Listed in BSE, NSE & London Stock Exchange International Presence – China, Egypt, Oman, Singapore & Myanmar 10 Years Turnover CAGR – 13% 10 Years PAT CAGR – 10% Employees – 3548 GAIL ¦ Overview India’s Numero Uno Gas Company

  4. GAIL ¦ Overview – Now & Then Emerged as a Truly Integrated Company Lines of Business Ventures

  5. GAIL ¦ Overview – Now & Then Strong Financial Performance Delivered (Rs in Crores)

  6. Transmission Trading Petrochemicals LHC • Core Business • NG Trans Cap ~ 150 MMSCMD (7000 KM) • LPG Trans Cap ~3.8 MMTPA (1927 KM) • Gas Marketing • No. 1 company in terms of Market Share • Significant Player • Only Polymer Plant in North India • Production Cap 410000 TPA • 7 Plant across India • Significant Player • Production Cap ~ 1.3 MMTPA GAIL ¦ Business Overview Business Portfolio

  7. E&P GAILTel Retail Diversification • Securing Gas Supply • 24 Domestic • 3 Overseas (2-Myanmar & 1 Oman) • 3 CBM (2Chatisgarh, 1Jharkhand) • Leveraging OFC • Countrywide Presence • Carriers Carrier Service Provider • 13000 KM – OFC Network • High Growth Area • 8 JVs (IGL, BGL, MGL, CUGL, GGL, TNGCL, MNGL, AGL) • 230 Cities Planned • PLL LNG terminal (6.5 MMTPA) • RGPPL – Power (2184 MW) & LNG (2.5 MMTPA) • GSEG – Power (156 MW) Onboard Gasification GAIL ¦ Business Overview Business Portfolio

  8. GAIL ¦ Wealth Creation Creating Value : More than 5 times since 2003 Grown more than 5 times

  9. GasTransmission Gas Trading LPG Transmission ‘000 MT MMSCMD MMSCMD (1%) 11% 57% 13% 2% 6% Petrochemicals Liquid HC GAILTel ‘000 MT ‘000 MT MBPS GAIL ¦ Segmental Physical Highlights – FY08 Significant Growth in Core Segments

  10. Sales (Net of ED) Gross Margin (EBITDA) 12% 27% 35% 9% PBT PAT GAIL ¦ Financial Performance – FY08 Top to Bottom Growth (Rs in Crores)

  11. GAIL ¦ Financial Performance – FY08 Bottom Growth Excluding Abnormal Item (Rs in Crores) 9% 25% Excluding abnormal items PAT grew by 25%

  12. GAIL ¦ Pipeline Projects – Recently Completed Pipeline Projects – Strengthened the Core Business Vijaipur-Kota LNTH – 192 Kms. Cost – Rs. 141 Cr. Cap. – 3.5MMSCMD Completed on – Jan 07 Kelaras-Malanpur LNTH – 85 Kms. Cost – Rs. 60 Cr. Cap. – 2MMSCMD Completed on – July 06 THULENDI Jagoti-Pitampur LNTH – 180 Kms. Cost – Rs. 95 Cr. Cap. – 3MMSCMD Completed on – March 07 KELARAS PHOOLPUR KOTA MALANPUR JAGOTI VIJAYPUR RAJKOT PITAMPUR DAHEJ Thulendi-Phoolpur LNTH – 139 Kms. Cost – Rs. 142 Cr. Cap. – 2.8MMSCMD Completed on. – May 06 Dahej Uran (DUPL) LNTH – 474 Kms. Cost – Rs. 923 Cr. Cap. – 12MMSCMD Completed on – June 07 URAN DABHOL Dabhol Panvel (DPPL) LNTH – 327 Kms. Cost – Rs. 402 Cr. Cap. – 12.5MMSCMD Completed on – Phase I : July 07 Completion sch – Phase I : May 08 Pipeline Project

  13. GasTransmission Gas Trading LPG Transmission 15% 14% 12% 8% 4% 2% • 11% contributor in Sale • 40% contributor in GM • Challenge - Incremental Gas volumes • No. 1 by Mkt share • 57% contributor in Sale • 4% contributor in GM • Challenge – Sourcing • Only company in this segment • 2% contributor in Sale • 7% contributor in GM GAIL ¦ Segmental Financial Highlights Growth in each Segment (Rs in Crores) Sales (Net of ED) Gross Margin (GM)

  14. Petrochemicals Liquid HC GAILTel & Others 422% 18% 33% 75% 28% • 14% contributor in Sale • 31% contributor in GM • Challenge – Sourcing of Rich gas • 15% contributor in Sale • 22% contributor in GM • Challenge – Subsidy • Inline with Corporate Strategy • <1% contributor in Sale • Higher E&P Activities GAIL ¦ Segmental Financial Highlights Growth in core Segments (Rs in Crores) Sales (Net of ED) Gross Margin (GM)

  15. GAIL ¦ Breakup of Turnover Balanced Mix of Business Segment Turnover Turnover (FY 07-08) – Rs.18008 Cr * % share excluding unallocated segment

  16. GAIL ¦ Breakup of Gross Margin Business Mix – Significant Gross Margin from Core Business Actives Gross Margin (FY 07-08) – Rs.4506 Cr * % share excluding unallocated segment

  17. PAT TO NET WORTH(%) DEBT EQUITY RATIO ROCE (%) EPS (Rs/Share) MARKET CAP (Rs in Crore) GAIL ¦ Key Financial Ratios Ratios Depicts Consistent Performer

  18. GAIL ¦ Financial Performance - Q4 Sustained Quarter on Quarter Performance Growth in Q4 of FY 2007-08 over Q4 of FY 2006-07 Financial Parameters (Rs. in Crs.) 4935 1260 1098 722 PAT 6% Gross Margin (EBITDA) 76% Turnover (Net of ED) 27% PBT 101% 3883 716 546 681 LPG Subsidy - Rs.387 Crs (Rs.502 Crs. Q4 of FY 06-07)

  19. GAIL ¦ Upcoming Pipelines Pipeline Projects – Strengthen the Core Business CHAINSA-JHAJJHAR-HISSAR LNTH – 450 Kms. # Cost – Rs. 1000 Cr. Add. Cap. – 35MMSCMD DADRI-BAWANA-NANGAL LNTH – 640 Kms. # Cost – Rs. 2500 Cr. Add. Cap. – 31MMSCMD Phases NANGAL Phase I by 2011 BAWANA DADRI HISSAR Phase II from 2012 CHAINSA BAREILLY JHAJJAR AURAIYA JAGDISHPUR MALANPUR KOTA DAHEJ-VIJAIPUR / GREP Upgradation LNTH – 1115 Kms. Cost – Rs. 11000 Cr. Add. Cap. – 66MMSCMD GAYA VIJAYPUR JAGDISHPUR-HALDIA LNTH – 1690 Kms. # Cost – Rs. 6600 Cr. Add. Cap. – 32MMSCMD RAJKOT HALDIA DAHEJ DABHOL GADAG KOLHAPUR KOCHI-MANGALORE-BANGALORE LNTH – 840 Kms. Cost – Rs.3500 Cr. Add. Cap. – 16MMSCMD GOA DABHOL-BANGALORE LNTH – 1480 Kms. # Cost – Rs. 4000 Cr. Add. Cap. – 16MMSCMD BANGLORE MANGLORE KANJIKKOD KOCHI # Including Spur lines

  20. GAIL ¦ E&P Initiatives E&P Activities – To Secure Future Gas Supplies • Total Blocks - 30 • Onshore Blocks - 9 • Offshore Blocks - Deep Water 13 & Shallow - 5 • CBM Blocks - 3 • Major Operators - ONGC, GSPC, OIL, Gazprom, Daweoo, Pertogas, Hardy, ENI, Jubilent, Arrow Energy • Net investment - Rs.1152 Cr (upto 31.03.08) • Discoveries made in 5 Blocks - Cambay onland, A1 & A3 block – Myanmar, Cauvery offshore, Mahanandi offshore Commercial Crude Oil Sales – started from 1st February 2008

  21. GAIL has been given Corporate Issuer Rating by Moody’s Foreign currency – Baa2 (One notch above sovereign rating of Baa3) Local Currency - A3 (Five notch above sovereign rating of Ba2) Positive impact on debt raising capability GAIL ¦ International Rating

  22. Conclusion Wrapping up with confidence

  23. THANK YOU

  24. RAJASTHAN JLPL LAKWA PATA VIJAIPUR HVJ, DVPL TRIPURA GANDHAR VAGHODIA USAR VSPL KG BASIN NATURAL GAS PIPELINE LPG PIPELINE LPG PLANT PETROCHEM PLANT CAUVERY BASIN GAIL ¦ Overview State of Art ‘Gas & Beyond’ Infrastructure GAS PIPELINES 7000 KMS(150 MMSCMD) 11 States LPG PIPELINES 1922 KMS (3.8 MMTPA) GAS PROCESSING 7 Plants (1.3 MMTPA LPG) PETROCHEMICALS 410,000 TPA

  25. OFC CONNECTIVITY E&P BLOCKS MYANMAR BLOCK DAHEJ LNG TERMINAL CITYGAS GAIL ¦ Overview State of Art ‘Gas & Beyond’ Infrastructure OFC Connectivity 13,000 KMS E&P 30 blocks (incl. 3 CBM Blocks) R-LNG PLL- Dahej (6.5 MTPA) Gas Retailing (8 JV) IGL,MGL,BGL,CUGL,GGL, MNGL,TNGCL,AGL Power 156 MW GSEG, Hazira 2184 MW Ratnagiri (Dhabol) Globalization Subsidiary 100% subsidiary – GAIL Global Retail Gas Fayum Gas, Shell CNG, China Gas & NAT Gas INDIA

  26. US $13T GAIL ¦ Strategic Direction GDP Growth underlies Energy Growth Russia $1.72T Canada $1.16T China $10T Mexico Japan $1.17T $4.17T India Brazil $4.16T $1.70T 2006 GDP

  27. US $13T GAIL ¦ Strategic Direction GDP Growth underlies Energy Growth - India on Growth high Path 4.32% 1.77% $4.95T $1.8T 2.2% Russia $22.4T $1.72T Canada $1.16T 5.65% $39.5T 3.08% 0.30% $2.5T $4.5T 5.31% China $10T 2.8% $15.6T Mexico Japan $3.4T $1.17T $4.17T India Brazil 2030 GDP $4.16T $1.70T 2006 GDP

  28. GAIL ¦ Strategic Direction Asia is the Fastest Growing Region World Total Primary Energy Consumption Central & South America Quadrillion Btu Africa Middle East Asia Europe North America

  29. GAIL ¦ Strategic Direction China & India is the Fastest Energy Consuming Region World Total Primary Energy Consumption Asia’s Total Primary Energy Consumption Quadrillion Btu Other Asian India China South Korea Japan

  30. GAIL ¦ Strategic Direction Coal & Gas dominates India’s Total Primary Energy Consumption World Total Primary Energy Consumption Asia’s Total Primary Energy Consumption India’s Primary Energy Consumption Quadrillion Btu Other Nuke Gas Coal Liquid

  31. GAIL ¦ Strategic Direction – Vision & Mission Business Statement inline with Energy Dynamics of Indian Economy VISION Be the leading company in natural gas and beyond with global focus, committed to customer care, value creation for all stakeholders and environment responsibility MISSION To accelerate and optimise the effective and economic use of Natural Gas and its fractions to the benefit of the national economy

  32. RETAIL & DIVERSIFACTION TRANSMISSION UPSTREAM MID STREAM City Gas Gas processing Marketing & Transmission E & P Telecom LNG Import Trans National Pipeline Petrochemical Cross Country Pipelines Power Secure Gas From Domestic Producers 3 2 1 Core Business Move Upstream Diversification 4 International Opportunity GAIL ¦ Strategy Implementation Strategy inline with Business Statement

  33. Business Strength Weak Average Strong Attractive Average Industry Attractiveness Unattractive GAIL ¦ Strategy Implementation Strategy inline with Business Strength & Industry Attractiveness E&P, Power NG Trading, NG Transmission Retail & Petchem Selective Investment Subsidy Liquid Hydrocarbon Marginal Investment Priority Investment Telecom Wait & Watch

  34. DAHEJ I & II 10 mmtpa* Turk-Afg-Pak-India Pipeline Iran-Pak-India Pipeline HAZIRA 2.5 mmtpa LUCKNOW CUTTACK BHARUCH BARODA DAMRA PUNE MUMBAI HYDERABAD CHENNAI City Gas/ CNG Existing TIRUCHCHIRAPALLI Planned TUTICORIN LNG Terminal GAIL ¦ Strategy Implementation Synergy in Thinking and Acting NANGAL BHATINDA DELHI BAREILLY GURGAUN AURAIYA DISPUR MATHANIA AGRA JAGDISHPUR BARMER KANPUR PATNA GWALIOR PHOOLPUR KOTA JHANSI GAYA VARANASI AGARTALA VIJAYPUR UJJAIN BOKARO RAJKOT BHOPAL AHMEDABAD LNG KOLKATA Existing SURAT Upcoming BHUBANESHWAR KRISHNAPATNAM Transmission Pipelines RAJAMUNDRY DABHOL 5 mmtpa SOLAPUR KAKINADA Existing KOLHAPUR VIJAYAWADA GAIL’s Planned Pipeline RIL’s East West Pipeline RIL’s Planned Pipeline GSPC’s Planned Pipeline GOA NELLORE BANGLORE HASAN MANGLORE MANGALORE 2.5 mmtpa KANJIKKOD COIMBTORE KOCHI 5 mmtpa

  35. GAIL ¦ Strategy Implementation Segment wise Investments – Balanced Approach Capex in 2007-08: Rs. 1,349 Cr Rs in Cr Funded Through a Mix of Internal Resources and Borrowings

  36. GAIL ¦ Strategy Implementation Segment wise Investments – Balanced Approach Total Capex in 5 years: Rs. 28,835 Cr Rs in Cr Funded Through a Mix of Internal Resources and Borrowings

  37. MoU with RIL – International Petrochemical Plant GTA signed with RIL 100% PMT Gas supply through GAIL’s infrastructure MoU with HPCL, Mittal, TOTAL and OIL for integrated refinery project in Vizag Feedstock Supply Agreements for Assam Gas Cracker Project signed - GAIL assures full support to the project GAIL, ONGC sign MoU for formation of JV for monetizing the gas reserves discovered by ONGC in KG and Mahanadi basins GAIL signs MoU with Transparency International India for Integrity Pact with Contractors Petroleum Secretary compliments GAIL on Dahej – Dabhol pipeline completion GAIL, Apollo Tyres sign accord for Steam Conversion Project through Waste Heat Recovery GAIL bags National Award for Excellence in Cost Management GAIL and China Gas to form Joint Venture Company GAIL-HPCL sign JV agreement for city gas projects in Rajasthan GAIL and Indian Oil ink MoU for JV in City Gas Distribution projects in West Bengal GAIL ¦ Strategy Implementation Recent Accomplishments

  38. Segment Turnover (Rs in Crores)

  39. Segment Gross Margin (EBITDA) (Rs in Crores)

  40. Segment PBT (Rs in Crores)

  41. GAIL ¦ Overview Shareholding Pattern - Strong Support from GoI Shareholding Pattern as on 31.03.08 Shareholders >1% or more • President of India 57.34% • Life Insurance Corporation 5.94% • ONGC 4.83% • IOC 2.42% • Templeton Global Advisers 1.55% • Magellan 1.20% • Government of India (“GoI”) is GAIL’s majority shareholder • The administrative ministry is the Ministry of Petroleum & Natural Gas, GoI • GoI has no plans to reduce its shareholding in GAIL

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