Bharat Petroleum Corporation Ltd.

Investor Presentation

December 2019 Disclaimer

No information contained herein has been verified for truthfulness completeness, accuracy, reliability or otherwise whatsoever by anyone. While the Company will use reasonable efforts to provide reliable information through this presentation, no representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted by the Company or its directors or employees, with respect to the truthfulness, completeness, accuracy or reliability or otherwise whatsoever of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from use or reliance on this presentation or its contents or otherwise arising in connection therewith.

This presentation may not be used, reproduced, copied, published, distributed, shared, transmitted or disseminated in any manner. This presentation is for information purposes only and does not constitute an offer, invitation, solicitation or advertisement in any jurisdiction with respect to the purchase or sale of any security of BPCL and no part or all of it shall form the basis of or be relied upon in connection with any contract, investment decision or commitment whatsoever.

The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

2 Table of Contents

1. Corporate Overview 4

2 Business Overview 8

3. Industry Overview 23

3 1. Corporate Overview

Credit Highlights

4 Introduction

’s 6th largest company by turnover over INR 3,376 bn in MMT FY19 and INR 2,773 bn in FY18 FY19 43.1 FY18 41.2 • India’s 2nd largest Oil Marketing Company (OMC) with FY17 37.7 domestic sales volume of over 43.07 MMT in FY19 and 41.21 FY16 36.5

MMT in FY18 FY15 34.5 Market Sales Market 0 10 20 30 40 50 − Domestic market share of 21% during FY19

• Majority Govt. of India shareholding of 53.29% and explicit Govt. support through under-recovery compensation mechanism MMT

• # 275 ranking on Fortune 2019 global list; ranks 6th among the only seven Indian companies on the list 38.3 38.3 30.5 30.5 36.5 • The Govt. of India conferred BPCL with “MAHARATNA” status in Sep 2017

Refining Refining Capacity FY16 FY17 FY18 FY19 Sep-19 • Well positioned to meet market demand across India through Strategically located Refineries and Marketing Infrastructure INR bn 1,019.76 939.79 927.25 • Successful foray into upstream business. 833.65

653.9 • Ratings at par with the Sovereign

− Baa2 (Outlook Negative) – Review for Downgrade by Moody’s / BBB- (Outlook Stable) by Fitch

FY16 FY17 FY18 FY19 Sep-19 Market Capitalization^ Market ^ Market capitalization figures as on period end FY means Financial year ending 31st March Source: National Stock Exchange India’s Leading Oil and Gas Company with presence across the Hydrocarbon Value Chain 5 Important Milestones

GoI acquired Burmah BPCL and GAIL BPCL entered the LNG MR Kochi CCR1 unit at Formation of Bharat Gas Shell Refineries. Name formed a JV, market by signing a gas capacity Refinery Mumbai Resources Limited for focus changed to BPCL in IGL, for sales purchase enhanced capacity Refinery on Gas business 1977 distribution of agreement with Petronet to 12 enhanced commission 2018 Natural Gas in LNG MMTPA to 9.5 ed in March Bina capacity enhanced to entire capital MMTPA 2014 2017 7.8 MMTPA region 2016 2015 2014

2012 conferred with “MAHARATNA” 2011 status in Sep 2017

2009 KR modernized 2008 and capacity 2007 enhanced to 15.5 2006 MMTPA 2003 1998 2002 Acquisition of upstream 1976 assets in Russia Integrated Refinery Expansion Project (IREP) at Kochi Started operations at its Refrigerated Bina refinery by launching LPG storage and handling Commissioned Energy Formed Bharat its crude distillation unit facility at Efficient CDU IV with Restructured business into Petro Resources Commissionin JNPT and replacement of CDU I & II at corporate centre, Strategic First in the Indian Limited (BPRL) for Euro III / IV products g of 6 MMTPA Uran LPG Mumbai Refinery Business Units (SBU) and Oil Industry to roll focus on upstream launched at Mumbai and Bina Refinery plant Commissioned Kota Jobner Shared Entities out ERP Solution business Kochi Refinery commissioned Pipeline and Terminal

6 Major Subsidiaries/ JVs

Subsidiaries Joint Ventures & Associates

City Gas Aviation Upstream Refining Refining Pipelines Trading Activities Distribution Services

100.00% 61.65% 50.00% 50.00% 22.50% 50.00% 50.00% Kochi Salem Bharat Stars Bharat Oman Matrix Bharat Pipeline Pvt. Services Pvt Refineries Limited Limited Pte Limited Limited Limited

25.00% 25.00% 11.00% 37.00% Bharat Delhi Aviation PetroResources Ratnagiri Refinery Central UP Gas GSPL India Refinery Limited Fuel Facility (P) LNG Limited & Petrochemicals Limited Transco Limited Limited 12.50% 22.50% 11.00% 21.68%* Maharashtra Kannur GSPL India Petronet LNG Gas Natural Gas International Gasnet Limited Limited Airport Ltd. 100.00% 49.94% 25.00% 25.00% Bharat Gas Resources Mumbai Aviation Sabarmati Gas IHB Pvt. Ltd. Others Limited Fuel Facility (P) Limited Limited

50.00% 74.00% 20.73% BPCL-KIAL Fuel Haridwar Natural Farm Facility Pvt. Gas Private FINO Paytech Ltd. Limited Ltd 7 50.00% 7 Goa Natural Gas Pvt. Ltd. * As per JV agreement 2. Business Overview

Credit Highlights

8 Diversified Product Offering and Presence Across Value Chain

Industrial/ RefineryAviation Retail LPG Aviation Lubricants Gas Commercial

 Refining capacity  25.77% market  25.67% market  Currently 8,000+  24.94% market  22.29% market  50+ major LNG of 38.3 MMTPA share1 share1 customers share1 in ATF share1 customers  15% of the  14,802 retail  Currently 6,011  56 Aviation  Currently 18,000+ country’s outlets distributors service stations customers refining capacity  123 depots  52 LPG bottling  More than 150+ /installations plants grades of products

 Strategically  Pan India  Various  Reliable,  Present at all  Major OEM tie  Emerging located presence across Innovative innovative and the major ups such as Markets refineries products offerings with caring supplier gateways and Tata Motors, ventures in of I&C products airports for into Honda, Genuine allied business plane services Oil, TVS etc.

 100% subsidiary  Four refineries  Pioneer in  Current  Pioneer in IT  Fuel Farm  Product BGRL for focus in Mumbai, branded retail customer base integration and Operations customization on Gas business Kochi, outlets, branded of 81mn incl. Supply Chain through  City gas Numaligarh and fuels ex: Speed retail and bulk Management MAFFFL and distribution Bina DAFFL networks in 10 cities + 13 new GAs

1. Market share includes sale by PSU as well as private oil marketing companies. All figures as of 30th September 2019 2. Source : Ministry of Petroleum and Natural Gas. 9 Refining Coverage

Installed Capacity Refining Throughput Refining Capacity

Mumbai – 12 MMTPA

Kochi – 15.5 MMTPA

BORL – 7.8 MMTPA

Numaligarh – 3 MMTPA MMTPA

. Capacity Utilization consistently above nameplate capacities . State of the art refinery at Bina

* Bina Refinery throughput is considered proportionately because it’s a 50:50 JV

Four Strategically located Refinery Utilization rates above 935-km cross country pipeline to refineries across India name-plate capacities source crude to BORL

10 Bina Refinery

. Bharat Oman Refineries Limited (BORL) – BPCL Interest 50% with 7.8 MMT Refining capacity at BINA

. State of art technologies - High Nelson Complexity Index 11.5 NRL Refinery . Associated Facilities – SPM, Crude Oil Terminal, 935-km cross country crude oil pipeline from Vadinar to Bina (VBPL) Mumbai Refinery . Bina Kota Pipeline for evacuation of products

. Low cost capacity expansion from 6 MMTPA to 7.8 MMTPA

Kochi Refinery . GRM of $6.2/bbl during H1FY20 and $9.8/bbl during FY19

Pipelines :

Bina refinery to consolidate refining portfolio required to support downstream retailing market in Northern and Central India

11

. Numaligarh Refineries Limited (NRL) – BPCL Interest 61.65% with 3 MMT Refining capacity in the north- eastern state of

. Largest producer of paraffin wax in the country

. GRM of $9.63/bbl during H1FY20 and $11.8/bbl during FY19

Expansion Plans Other Projects

. Capacity expansion from from 3 to 9 MMTPA . Diesel Hydrotreater Project with capex of Rs.1031 crores completed in Jan 2018 . Total Project Cost of Rs.22,594 crores . Bio-refinery through JV planned at a cost of . Integrated with an 8 MMTPA 1,398 km crude Rs.1,259 crores at Numaligarh pipeline from Paradip to Numaligarh . 129.5 km India Bangladesh Product Pipeline . Integrated with a 6 MMTPA 650 km product at a cost of Rs.346 crores including pipeline from Numaligarh to Siliguri Government Grant-in-Aid of Rs.285 crores

Numaligarh refinery to consolidate refining portfolio required to support downstream retailing market in North-eastern India

12 Marketing Operations and Efficiencies

SBU Market Sales (MMT) Retail Market Share of MS & HSD *

42.00 41.21 43.07 36.53 37.68 37.00 34.45

32.00 Retail MS > 28.62% 27.00 Lubes .

22.00 Direct 17.00 Aviation . HSD > 28.94% 12.00 LPG 7.00 2.00 (3.00) FY15 FY16 FY17 FY18 FY19

LPG Bottling Plant Capacity (TMTPA) Thru’put per Outlet BPC Vs. Industry (KL/month)

4500 250 4300 4212 225 4100 3957 184 3900 200 161 168 3687 155 3700 175

3500 3363 Capacity 150 3300 125 3075 Apr-Sept 19 3100 100 2900 75 2700 50 2500 FY15 FY16 FY17 FY18 FY19 25 0 * Market share is PSU Market share on Sept 19 BPC IOC HPC Industry Leading Player with a Diversified product portfolio and a well-established Marketing and Distribution network 13 Ongoing projects – thriving to be self sufficient integrated source of fuel supply

Kochi Refinery – MS Block Project for Euro VI grade gasoline

 Mumbai Refinery – Gasoline Hydro-treatment Unit

 Kochi – Diversification into Niche Petrochemicals – Propylene Derivatives Petrochemical Project (PDPP)

 Retail : Network expansion with infrastructure growth and upgradation

 LPG import terminal at Haldia, West Bengal

 Bina Kanpur Product Pipeline

Significant Expansion in Downstream & Marketing network to drive future growth

14 Upcoming projects

 Investments in Mozambique – FID completed

 Refineries – Upgrade/ Expansion / De-bottlenecking

 NRL Refinery –Capacity Expansion from 3 MMTPA to 9 MMTPA

 Investments in Gas – 11 GAs in 9th round and 2 GAs in 10th round

 Expansion of marketing infrastructure across all business verticals

Bio-refinery at Bargarh, Bina and Bhandara

Polyol Project at Kochi

New facilities at Rasayani near Mumbai

6000 new retail outlets in the next three years

More expansions in Upstream, Downstream business & Marketing network

15 Capex Strategy

Capex Data 160.00 147.79

140.00 17.24

124.88 4.70

120.00 11.27 12.90 109.93 4.04 4.50 1.60 12.08 100.00 11.51 28.55 89.98 3.23- 79.50 27.54 80.00 17.88 5.77 2.00 INR INR Billion 48.43 8.00 37.50 60.00 29.75 24.90 43.31 40.00 16.84 18.25 46.90 20.00 7.55 39.74 27.51 18.01 20.58

- FY18 FY19 FY20 FY21 FY22 Financial Year

Refineries Petrochemicals Marketing Investments in Exploration Investments in Gas Others

Significant Expansion in Upstream and Downstream business to drive future growth

16 Improved Financial Performance

Net Worth (INR bn) Total Debt / EBITDA

341.31 367.38 374.70 2.2x 296.68 1.7x 1.6x 1.5x

FY17 FY18 FY19 Sep-19

FY17 FY18 FY19 Sep-19

Total Debt / Equity

0.78x 0.79x

0.70x 0.68x

FY17 FY18 FY19 Sep-19

Stable Earnings and Sound Financial Leverage driving Credit Strength

17 Improved Financial Performance

90.00 80.00

) 70.00

bn 60.00

(INR (INR 50.00 70.56 71.32 40.00 80.39 79.19 30.00 50.85 40.61 Net Net Profit 20.00 26.43 10.00 - FY13 FY14 FY15 FY16 FY17 FY18 FY19

Profit after Tax (Rs. Bn)

Adjusted Debt-Equity Ratio (1) Adjusted Capital Employed (INR Billion) (1)

400 700 0.80 0.54 0.65 0.56 Net Worth Borrowings Capital employed 0.60 350 607 600 300 0.40 523 500 475 250 - 380 400 200 FY17 FY18 FY19 Sept 19 305 300 150 200 100 Debt: Equity ratio 50 100 (1) Adjusted for bonds outstanding as on period end - - FY15 FY16 FY17 FY18 FY19 Stable Earnings and Sound Financial Leverage driving Credit Strength

18 BPRL’s Upstream Story over the years…….

2019 2018 2017 2016

2015 2013 Overseas Onshore Operatorship – 2012 Entry in Lower Declaration of Zakum Abu Dhabi Commerciality Mozambique 2011 22 Russian approved in FID discoveries Acquisition Operatorship block Schedule B (cumulative) 2010 Indonesia Lead entry operator 2009 Joint operator Shale gas 2008 entry Australia NELP VI (5 blocks) Brazil 2007 & Mozambique acquisition 2006

Formation of BPRL 2003 Formation of E&P setup in BPCL Upstream Global Spread

2 TYNGD Production Russia 2 Vankorneft Appraisal / Development Exploration

3 Cauvery Basin 3 Rajasthan Basin India 3 Cambay Basin 1 Assam-Arakan 3 Mumbai Basin

Indonesia 1 Nunukan

Lower 1 UAE Zakum 1 Onshore 1

Israel 1 Block 32 Australi 2 BM-SEAL-11 1 EP413 a Brazil 1 BM-C-30 Mozambiqu 1 Area 1 2 BM-POT-16 e Timor Leste 1 JPDA 06-103

Discovery 26 Exploration Discoveries Location Global Upstream Footprint

Partnership with established Oil and Gas operators expected to generate optimal returns for BPCL.

Within India Brazil Australia and East Timor BPCL BPCL BPCL Exploration Block Operator Partners Exploration Block Operator Partners Exploration Block Operator Partners Stake Stake Stake1 GSPC, NELP—IV BM-SEAL-11 Petrobras 20.0% Videocon Videocon, CY/ONN/2002/2 ONGC 40.0% ONGC (2 blocks) Japan NELP—VI JPDA 06-103 Oilex 20.0% BM-C-30 Videocon, Energy, Pan BP 17.85% CY/ONN/2004/2 ONGC 20.0% ONGC (1 block) Total Pacific NELP—VII Petroleum BM-POT-16 Videocon, Norwest RJ/ONN/2005/1 HOEC, BPRL 33.33% IMC Petrobras 10.0% EP-413 27.8% AWE Perth Pty (2 blocks) Petrogal, BP Energy Limited NELP—IX GAIL, EIL, BIFL, Mozambique Russia CB/ONN/2010/11 25.0% BPRL MIEL BPCL BPCL Exploration Block Operator Partners Block Operator Partners AA/ONN/2010/3 OIL 20.0% ONGC Stake Stake2 BPRL, EIL, BIFL, PTTEP, Rosneft, CB-ONN-2010/8 25.0% Vankorneft GAIL MIEL Mozambique Mitsui and Vankorneft 7.887% OIL, IOCL, Total 10.0% (2 Blocks) MB-OSN-2010/2 OIL 20.0% HPCL Rovuma Basin Co., ENH, ONGC OVL-OIL DSF 2016 TAAS- Yuryakh Rosneft, BP, TYNGD 9.867% 6 Blocks BPRL 100.0% - (2 Blocks) OIL, IOCL United Arab Emirates BPCL Indonesia Block Operator Other Partners Israel Stake BPCL BPCL Exploration Block Operator Partners CNPC, INPEX, ENI, Exploration Block Operator Partners Stake Lower Zakum ADNOC 3% Total, Falcon Oil3, Stake Nunukan PSC, Videocon IOCL ONGC Pertamina 12.5% Block 32 25% IOCL, OIL Tarakan Basin Industries Urja (50:50 SPV of BPRL Videsh Onshore 1 50% Bharat & IOCL)

1. BPCL’s effective stake held through 50:50 JV with Videocon. 2. BPCL’s effective stake held through SPV with OIL & IOCL 3. BPCL’s effective stake held through SPV with ONGC Videsh & IOCL 21 Highly Experienced Management Team

22 3. Industry Overview Corporate Overview

Credit Highlights

23 India – Attractive Industry Dynamics

Significant potential for domestic O&G companies given low per-capita oil consumption and growing demand.

Per Capita Oil Consumption India Oil Demand bbl/day per 1,000 People Million Tonnes

India 3 83.5 FY19 28.3

China 9 24.9

81.1 Brazil 15 FY18 26.2 23.3 Russia 22 76.0 UK 24 FY17 23.8 21.5

Germany 29 74.6 FY16 21.8 Australia 42 19.0

US 60 69.3 FY15 19.1 Singapore 242 17.6

Diesel Petrol LPG

Source: Oil Consumption from BP Statistical Review 2016,Population from World Bank, Estimates 2015 Source: PPAC

24 Indian Oil Industry

Positive Policy actions

• Petrol Prices De-regulated completely

• Gasoil (Retail) – Deregulation announced effective 19th October 2014

• Gasoil – Bulk sales completely deregulated since January 2013

• Restricted supply/Targeted subsidies for cooking fuel products

• LPG DBTL scheme - Domestic LPG fully enrolled

• SKO PDS DBTK scheme – launched on pilot basis in 4 districts and now implemented in the state of Jharkhand

• Govt. has consistently compensated OMCs including BPCL for under recoveries and ensured reasonable profitability

Strategic position in the Indian economy with way to deregulation of fuel sector in the country

25 Thank You