CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020

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CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
CORPORATE PROFILE

   PETRONET LNG LIMITED,
       January 2020
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
DISCLAIMER

Any information contained in this presentation should not be
taken as being a representation about facts and projection or
promise of performance, whether financial, operational or
otherwise. Nothing contained in this presentation should be
considered an invitation to transact in our securities or an offer
of our securities. This presentation is made specifically for
purposes of the meeting in which this is being presented and
not for any other purpose. You may determine that such
information may be regarded as forward-looking but we
make no assurance about any projection, extrapolation or
interpretation of the same that you may make.                 The
information contained herein should be treated with utmost
confidentiality and not used for any purpose. You are advised
to obtain legal advice on the nature and character of the
information and on implications of being in possession of the
same.
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
OVERVIEW

 Global & India’s Primary Energy Consumption Scenario

 India’s Gas Scenario, Infrastructure

 Role of LNG in India

 About Petronet’s

      Dahej & Kochi Terminals
      New Initiatives
      Performance

                                                         3
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
PRIMARY ENERGY CONSUMPTION (mtoe) – WORLD

          Fuel                  2008        %     2018    %

           Oil                  4143       35%    4662   34%

          Coal                  3503       30%    3772   27%

           Gas                  2578       22%    3309   24%

        Nuclear                  620       5%     611    4%

         Hydro                   737       6%     949    7%

     Renewables                  124       1%     561    4%

         Total                 11705       100%   809    100%

Source : BP Statistical Review-June 2019                        4
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
PRIMARY ENERGY CONSUMPTION (mtoe) – INDIA

            Fuel                       2008       %     2018    %

             Oil                           149   31%    239    30%

            Coal                           259   54%    452    56%

            Gas                            34    7%      50    6%

         Nuclear                            3    1%      9     1%

           Hydro                           26    5%      32    4%

      Renewables                            5    1%      27    3%

           Total                           478   100%   809    100%

Source : BP Statistical Review-June 2019                              5
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
INDIA – A MAJOR GAS/LNG CONSUMER
     14th largest gas consumer – 58 bcm (~158 mmscmd)
     4th largest LNG importer – 31 bcm (~82 mmscmd)
     Economy growing at CAGR of about 6-7% with similar growth in Energy Consumption
     Government aims to significantly increase share of Natural Gas in Indian Energy basket to in
      coming years
     Despite increase in domestic gas production- dependency on imported gas to increase
      substantially
     Pipeline network- developing into a national grid- needs to grow faster, connecting new
      markets
      SECTOR WISE PROJECTED GAS DEMAND (mmscmd)
350.00                                                                             Sector            2016-17    2019-20   2026-27
                                                            Power

300.00                                                                             Power                  157    202       309
                                                            Fertilizer
250.00                                                                            Fertilizer              97     106       110
200.00                                                      City Gas               City Gas               22      36        68

150.00                                                                            Industrial              27      35        52
                                                            Industrial

100.00
                                                            Petchem/
                                                                            Petchem/ Refineries /
    50.00                                                   Refineries /        Internal Cons.            47      54       103
                                                            Interal Cons.
     0.00
                                                            Sponge/          Sponge/ Iron/ Steel          8       10        12
                                                            Iron/ Steel
              2016-17        2019-20         2026-27
                                                                            Total Realistic Demand        358    443       654
      Source : PPAC, BP Statistical Review June 2019 & Vision 2030, Natural Gas Infrastructure in India
                                                                                                                                 6
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
GAS DEMAND IN INDIA

                  MMSCMD

                           7
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
INDIA’S GAS INFRASTRUCTURE
                                               Pipelines           Length       Designed
           Chhara                                                  (Kms)        Capacity
                                                                                (MMSCMD)
                                           Existing                 16,770                369
   Jafarbad                                Under                    11,377                 -
                                           Implementation
                                           Total                    28,147     Kolkatta
Mundra

                                                                                Digha
Jaigarh

                                                                              Dhamra
 Dahej
                                                                             Gangavaram
  Hazira

                                                   Krishnapattam

                                        Kakinada

    Dabhol
                                  Ennore

     Kochi

                    Possible Physical
                    Gas Hub in India
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
LNG TERMINAL INFRASTRUCTURE

                                                                                                                  CAPACITY
    No.                          TERMINAL                                                DEVELOPERS
                                                                                                                  (MMTPA)
                                                                      Existing Terminal
    1     Dahej                                                        Petronet LNG Limited                            17.5
    2     Hazira                                                       Royal Dutch Shell, Total Gaz Electricite         5.0
    3     Dabhol                                                       GAIL,NTPC                                        5.0
    4     Kochi                                                        Petronet LNG Limited                             5.0
    5     Ennore                                                       Indian Oil Corp                                  5.0
          TOTAL EXISTING                                                                                               37.5
                                          Construction completed
    6     Mundra                                  GSPC, Adani                                                           5.0
                                            Under contrcution
    7     Jaigarh (FSRU)                          H Energy                                                              4.0
    8     Dhamra                                  Adani                                                                 5.0
    9     Jafrabad (FSRU)                         Swan                                                                  5.0
    10    Chhara                                  HPCL & Shapoorji Pallonji                                             5.0
          TOTAL UNDER-CONSTRUCTION /CONSTRUCTION COMPLETED                                                             24.0
                                                     Proposed
    11    East coast                              Petronet LNG Limited                                                  5.0
    12    Kakinada/Krishnapatnam/Karaikal         Others                                                                2.5
    13    Kolkata/Digha Port                      H Energy                                                              2.5

          TOTAL PROPOSED                                                                                               10.0
          GRAND TOTAL                                                                                                  71.5
•   In absence of breakwater terminal can operate at 2.5 MTPA
•   # in absence of commercial commitments, plans have been put on hold
CORPORATE PROFILE - PETRONET LNG LIMITED, January 2020
PETRONET LNG LIMITED
 Incorporated on April 2, 1998
 Authorized Capital INR 3000 Crore
 Paid up capital INR 1500 Crore
 Commencement of Commercial Operations - April, 2004
 Equity
   50% Oil & Gas PSUs (BPCL, GAIL, IOC & ONGC)
   50% Public / FIIs

                                   12.5

                                          12.5
           Public & FIIs
                             50
                                          12.5

                                   12.5

                                                        10
TOWARDS THE VISION

 Vision                                                                                   Business Strategy

  To be a key energy provider to the nation                                                  Create and manage world-class
  by leveraging unique position in the LNG                                                    LNG infrastructure
  value-chain with international presence                                                    Continue excellence in LNG
45000      Revenue growth 19%                                                                 business
           EBITDA growth 20%
                                                39500             (INR Crore)                   - Focus on higher capacity
40000                                   37747                                                     utilization and better
                                                                                                  operational efficiencies
35000
                             31467
                                                                               30599            - Diversify LNG sources
30000
                                                          27133                              Diversify business
                                                                     24616
25000              22696                                                                        -   Solid cargo port at Dahej
                                                                                                -   Small Scale LNG
20000
                                                                                                -   Exploring business
15000   13197                                                                                       opportunities in neighboring
                                                                                                    countries
10000
                                                                                   3630
                                                                                                -   City-gas distribution/ direct
5000                       1914
                                     2205
                                            1582   1594       1760
                                                                        2939                        marketing
            1284
   0
                                                                                                -   Air Separation Unit
        2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18                      Maintain highest standards of
                                                                                              business ethics
                                                                                                                                    11
DAHEJ LNG TERMINAL

 Located at Dahej in Gujarat in the Gulf of Cambay on the West Coast of India.
 Commencement of Operations in 2004

                       Capacity (mmtpa)
                2004                      5.0
                2009                      10.0
                2016                      15.0
                2019                      17.5

 LNG Cargoes unloaded : 2200+
       1st 1000 Cargoes in Feb 2013
       2nd 1000 Cargoes in June 2018
 7.50 mmtpa LNG imported from Qatar under long term contracts
 Terminal meets almost 40% of India’s gas requirement and around 75-80% of
    LNG imports in the country
   Truck Loading facility can handle 14,000 loadings/ yr.
   Offering tolling services to Offtakers & Bulk customers
   Expanded Capacity contracted with GAIL, GSPC, IOCL & BPCL
   Time Charter Vessels – Disha, Raahi and Aseem

                                                                                  12
DAHEJ PLANT FACILITY

                       13
DAHEJ SECOND JETTY
DAHEJ EXPANSION PHASE IIIA
DAHEJ EXPANSION PHASE IIIB1

                                      Pipe
                                    Pipe   Rack
                                         Rack
STV
                                                    Pipe rack
                                    STV Area

                        Pipe Rack

Air Heater                           Fire Station

15 MMTPA FACILITY AT DAHEJ
      NAME OF FACILITY?Air Heater
KOCHI LNG TERMINAL
 Terminal  commissioned in September, 2013 with the nameplate
  capacity of 5.0 mmtpa.
 For effective utilization of Kochi terminal in absence of pipeline,
  ancillary services such as storage & reloading, cool down, bunkering
  options explored
 Kochi Terminal has so far handled 45+ Cargoes operations (including
  18 Reload / Cool down Cargo operations and 2 bunkering).
 Truck loading facility–         supply commenced to HLL, Kochi and
  so far supplied around more than 1250 + truck loads.
 Long term contract of about 1.50 mmtpa LNG from Exxon Mobil’s
  Gorgon Project (Australia) – supply commenced.
 PLL is aggressively pursing construction of Mangalore / Bangalore
  pipelines with GAIL.
KOCHI FACILITY

                 18
KOCHI – TRUCK LOADING
KOCHI PIPELINE

 PLL is aggressively
  pursing
  construction      of
  pipeline with GAIL

 All sections Kochi
  Koottand      and
  Perole-
  Kodalamuguru-
  Mangaluru awarded
 Kochi - Koottanad
  section completed
  and successfully
  commissioned in
  June 2019
 The connectivity to
  Mangalore        will
  ensure up to 25-
  30% of capacity
  utilization at Kochi
  Terminal
NEW BUSINESS INITIATIVES

 Launch of 1st LNG fueled bus in Kerala on 8th
  November 2016

 PESO has amended Static and Mobile Pressure
  Vessels(U) rules,1981 including the guidelines
  for setting up of LNG/LCNG Dispensing Station

 Ministry of Road Transport & Highways have
  incorporated LNG as an automotive fuel in
  Central Motor Vehicle Rules

 Exploring opportunities of utilizing LNG
    as automotive fuel for heavy duty trucks by
      setting up LNG dispensing stations on major
      highways
    as marine fuel to LNG powered fishing boats
SSLNG PROJECT PLAN FOR PILOT DEVELOPMENT

 Development of Pilot route with establishment of 20 LNG fuelling
  stations. The average distance between two stations being about 250
  km. The proposed route is as follows:

    Delhi to Mumbai Highway

    Ahmedabad to Mundra Highway

    Mumbai to Chennai

    Manguluru to Bengaluru

    Mangaluru to Thiruvananthapuram

 Finalization of business plan with various Oil and Natural Gas Marketing
  Companies for setting up of stations
PLL’s PROGRESS FOR PROVING THE CONCEPT
   LNG has been notified as an automotive fuel in Central Motor Vehicle Rules (CMVR).

   PESO recommendations on Static & Mobile Pressure Vessels (SMPV) rules for dispenser
    stations - final notification issued in April 2018.

   PLL has procured four LNG buses approved for Commercial operations for its staff
    transportation at Dahej and Kochi terminals

   PLL has developed LNG dispenser stations inside Dahej and Kochi LNG terminals

   PLL is in discussions with State Roadways of Gujarat and Kerala to run a few buses on
    LNG and establishing LNG dispensing at their locations.
NEW BUSINESS INITIATIVES

 LNG regasification terminals / FSRUs Initiatives being explored
  in :
        Sri Lanka
        Bangladesh
        Andaman & Nicobar Islands
        Mauritius
PERFORMANCE GRAPH

                                                                                                              Net Worth ( Crore)
                          Sales/ Service TBTU
                                                                                     12000                                                                        10666
 1000                                                                                                                                                     9720
                                                                    847     844      10000
                                                                                                                                                   8094
  800                                                       728                          8000
                                                                                                                                            6377
                                                    581                                                                             5688
  600              548      524             533                                          6000                                4992
                                    494                                                                               4450
           440                                                                                                 3520
                                                                                         4000
  400                                                                                             2236 2682
                                                                                         2000
  200
                                                                                           0
    0

                         Turnover Rs. Crore                                                                     Profit Crore
45000                                                                             2500
                                  37747   39500                           38395                                                                                      2155
40000                                                                                                                                                      2078
35000                     31467                                   30599           2000
                                                  27133                                                                                            1706
30000                                                     24616
25000            22695
                                                                                  1500
20000                                                                                                1058     1149
         13197                                                                                                                             914
15000                                                                             1000                                          882
10000                                                                                       620                        711
 5000
                                                                                   500
    0
        2010-11 2011-12 2012 - 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
                          13                                                         0
                                                                                          2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
FINANCIAL PARAMETERS
                                                     Mkt. Price INR
450                                                                                      403
400
350                                                                                                     336
300
250                                                              170                                               238
200                                       151                                 208
150            82
100                        123                       133
 50
  0
          10          11             12         13          14           15         16             17         Current

                                                                                               (* - Bonus Share 1:1)

            Year                 EPS (INR)                        P/E                          D/E
           2010-11                  8.26                         15.19                         1.20
           2011-12                 14.10                          9.29                         0.93
           2012-13                 15.32                          8.83                         0.68
           2013-14                  9.49                         14.75                         0.66
           2014-15                 11.77                         14.52                         0.45
           2015-16                 12.19                         20.57                         0.37
           2016-17                 22.80                         17.72                          0.27
           2017-18                 13.86                         16.66                          0.15
           2018-19                 14.37                         17.51                          0.07

      Exchange Rate 1 US$ = INR 60
PERFORMANCE BASED ON EMPLOYEE PARAMETERS
                                                                  2018-19     2017-18      2016-17       2015-16
    Number of Employees                                             494         486          480           466

    Turnover/ employees (INR Crore)                                78.62       63.45          52           58.41

    Profit Before Tax / Employee (INR Crore)                        6.69        6.27         4.92          2.63

    Profit after Tax/employee(INR Crore)                            4.51        4.32         3.55          1.99

    Employee Benefit Expenses (INR Crore)                          12.58       91.12         73.86         71.69

    Employee Remuneration cost (as % of Profit after tax)          5.64%       4.38%        4.33%         6.11%

A Snapshot of our Human Capital
            Human Capital                            Skill Set                              Others
     Location      Male     Female
                                       Professional : 241                   76% of the professionals are of Technical
    Delhi           85         25                                           background as opposed to 24% Non
                                       Tech: 182            Non Tech:59     Technical
                                                                            Average Age:36.34 years (more than
    Dahej          249         4       Technician/Operators: 180
                                                                            50% employees in 30-40 years age)
                                       Office Support 48
                                       (Receptionist/Assistant)             Average years of association of employees
    Kochi          128         3
                                       Support Staff: 25                    with Company: 7.45 years
                                       (Attendant/Driver/Caretaker)

       Attrition rate: 2018-19 : 3.03%
       Learning & Development : 5.67 Mandays / Employee
                                                                                                                    27
RATING AND RECOGNITION

         Ratings & Ranking:
           Moody’s International Rating Baa2 (at
             par   with    India’s    Sovereign   Rating)
             (2018)
           Rated AAA+ by CRISIL, India Ratings &
             ICRA (2018)
           48th rank Fortune India 500 (2018)
           51st rank in ET 500 (2018)
           46th rank in D&B India’s 500 Companies
         Certificate     of    Appreciation   from   US
          Environment          Protection   Agency    for
          maintaining low methane emissions
CSR – PARTNERING WITH SOCIETY
Healthcare and Sanitation
 Financial assistance for construction of Trauma Care Centre at AIIMS,
  Bhubaneshwar
 Eye screening & cataract operational camps in Delhi, Dahej, Kochi, and U.P.

Education and Empowerment
 Petronet Super 30 in collaboration with Indian Army & CSRL supporting
  underprivileged & brilliant students of Kashmir for 11 months Residential
  coaching for admission to IITs/NITs.
 Skill development training for underprivileged youth in association with CIPET
  in Gujarat , Kerala, Haryana and Himachal Pradesh.
 Skill Development training of 540 women in Dharwad, Karnataka
 Skill development initiative of Tribal girls with DRI Balrampur
Community Development & Others
 Efforts towards Hunger Free City Numma – Oonu – Petronet Kitchen,
  Ernakulam, Kochi
 Solar lights installations in Pali, Rajasthan
 Construction of BSF widow quarters in Gujarat, Rajasthan and Punjab
 District level Special Olympics in Bharuch, Gujarat
Thank You

            30
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