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Bharat Petroleum Corporation Ltd Bharat Petroleum Corporation Ltd. Investor Presentation February 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 • India’s 6th largest company by turnover over INR 2,772 bn in MMT FY18 and INR 2,420 bn in FY17 FY18 41.2 FY17 37.7 • India’s 2nd largest Oil Marketing Company (OMC) with FY16 36.5 domestic sales volume of over 41.21 MMT in FY18 and 37.68 FY15 34.5 MMT in FY17 FY14 34.0 Market Sales Market 0 5 10 15 20 25 30 35 40 45 − Domestic market share of 21% during FY18 • Majority Govt. of India shareholding of 53.93% and explicit Govt. support through under-recovery compensation mechanism MMT • # 314 ranking on Fortune 2018 global list; ranks 6th among the 36.5 36.5 only seven Indian companies on the list 30.5 30.5 30.5 • The Govt. of India conferred BPCL with “MAHARATNA” status in Sep 2017 Refining Capacity FY15 FY16 FY17 FY18 Dec-19 • Well positioned to meet market demand across India through INR bn Strategically located Refineries and Marketing Infrastructure 939.79 927.25 786.89 653.9 • Successful foray into upstream business. 586.3 • Ratings at par with the Sovereign − Baa2 (Outlook Positive) by Moody’s / BBB- (Outlook Stable) by Fitch FY15 FY16 FY17 FY18 Dec-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 capacity enhanced to Kochi CCR1 unit at Formation of Shell Refineries. Name formed a JV, market by signing a gas 12 MMTPA. Refinery Mumbai Bharat Gas changed to BPCL in IGL, for sales purchase BPCL and Videocon JV capacity Refinery Resources 1977 distribution of agreement with Petronet enhanced commission 2018 acquired 50% stake in Limited for Natural Gas in LNG Brazil's EnCana to 9.5 ed in March focus on Gas entire capital Brasil Petroleo MMTPA 2014 2017 region business 2016 2015 2014 2012 2011 Acquisition of conferred with upstream “MAHARATNA” 2009 assets in status in Sep 2008 Russia 2017 2007 2006 Integrated 2003 Refinery 2002 Expansion 1976 1998 Project (IREP) at Kochi Started operations at its Refrigerated Commissioned Energy Bina refinery by launching LPG storage Efficient CDU IV with and handling replacement of CDU I & II Entered into its crude distillation unit facility at at Mumbai Refinery upstream business Commissioning of Restructured business into JNPT and First in the Indian and formed Bharat Euro III / IV products 6 MMTPA Commissioned Kota Jobner corporate centre, Strategic Uran LPG Oil Industry to roll Petro Resources launched at Mumbai and Bina Refinery Pipeline and Terminal Business Units (SBU) and plant out ERP Solution Limited (BPRL) Kochi Refinery Shared Entities commissioned 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 Indraprastha Gas Matrix Bharat Pipeline Pvt. Services Pvt Refineries Limited Limited Pte Limited Limited Limited 25.00% 25.00% 11.00% 37.00% Bharat Numaligarh Ratnagiri Refinery Delhi Aviation PetroResources Central UP Gas GSPL India Refinery Limited & Petrochemicals Fuel Facility (P) LNG Limited Limited Transco Limited Limited 12.50% 22.50% 11.00% 21.68% Maharashtra Kannur GSPL India Petronet LNG Natural Gas International Aviation Gasnet Limited Gas Limited Airport Ltd. Services 49.94% 25.00% 100.00% 74.00% Mumbai Aviation Bharat Gas BPCL-KIAL Fuel Sabarmati Gas Others Fuel Facility (P) Resources Farm Facility Pvt. Limited Limited Ltd. Limited 50.00% 20.73% Haridwar Natural Gas Private FINO Paytech Limited Ltd 7 50.00% 7 Goa Natural Gas Pvt. Ltd. 2. Business Overview Credit Highlights 8 Diversified Product Offering and Presence Across Value Chain Industrial/ RefineryAviation Retail LPG Aviation Lubricants Gas Commercial Refining capacity 26% market 26.5% market Currently 8,000+ 24.8% market 14.7% market 50+ major LNG of 36.5 MMTPA share1 share1 customers share1 in ATF share1 customers 15% of the 14,651 retail Currently 5,642 43 Aviation Currently 16,000 country’s outlets distributors service stations customers refining capacity 115 depots and 51 LPG bottling More than 1000+ 13 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 Only OMC to Product BGRL for focus in Mumbai, branded retail customer base integration and implement customization on Gas business Kochi, outlets, branded of 68mn incl. Supply Chain “Apron Fuel City gas Numaligarh and fuels ex: Speed retail and bulk Management Management distribution Bina System” networks in 10 cities + 11 new GAs 1. Market share includes sale by PSU as well as private oil marketing companies. All figures as of 31st December 2018 2. Source : Ministry of Petroleum and Natural Gas. 9 Refining Coverage Installed Capacity Refining Throughput Refining Capacity 40.00 34.70* 31.25* 29.84* 3.35 28.69* 29.24* Mumbai – 240 kbpd 30.00 3.18 2.81 2.73 3.10 3.20 2.68 2.61 2.78 2.52 14.29 20.00 13.60 13.03 12.96 13.41 Kochi – 310 kbpd 10.00 1 1 .7 9 1 4 .2 5 1 0 .3 2 1 0 .4 0 1 0 .7 1 - BORL – 120 kbpd FY14 FY15 FY16 FY17 FY18 Kochi Mumbai Numaligarh Bina MMT Numaligarh – 60 kbpd . Capacity Utilization consistently above global peers for KR and MR . State of the art refinery at Bina - High Nelson Complexity Index of 9.1 * Bina Refinery throughput is considered proportionately because it’s a 50:50 JV Four Strategically located Refinery Utilization rates 935-km cross country pipeline to refineries across India significantly above global peers source crude to BORL 10 Bina Refinery . Bharat Oman Refineries Limited (BORL) – BPCL Interest 50% with 120,000 bpd (6 MMT) Refining capacity at BINA . State of art technologies - High Nelson Complexity Index 9.1 NRL Refinery . Associated Facilities – SPM, Crude Oil Terminal, 935-km cross country crude oil pipeline from Vadinar to Bina (VBPL) . Graded improvement in operations with the Mumbai Refinery Refinery operating at more than 100% of the design capacity during FY17 . Low cost capacity expansion from 6 MMTPA to 7.8 MMTPA Kochi Refinery . GRM of $2.1/bbl during Q3FY19 and $11.7/bbl during FY18 Pipelines : Bina refinery to consolidate refining portfolio required to support downstream retailing market in Northern India 11 Marketing Operations and Efficiencies SBU Market Sales (MMT) Retail Market Share of MS & HSD * 42.00 41.21 36.53 37.68 37.00 34.00 34.45 32.00 Retail 27.00 MS > 26.32% Lubes . 22.00 Direct 17.00 Aviation . HSD > 26.46% 12.00 LPG 7.00 2.00 (3.00) FY14 FY15 FY16 FY17 FY18 LPG Bottling Plant Capacity (TMTPA) Thru’put per Outlet BPC Vs. Industry (KL/month) 250 3957 3900 225 188 3687 200 3700 157 162 164 175 3500 3363 150 3300 Capacity 3075 3075 125 3100 Apr-Dec 18 100 2900 75 2700 50 2500 25 FY14 FY15 FY16 FY17 FY18 * Market share includes sale by PSU as well as private oil marketing companies during H1FY19 0 BPC IOC HPC Industry Leading Player with a Diversified product portfolio and a well-established Marketing and Distribution network 12 Efficient Marketing Operations and Infrastructure Continuous innovation to extend customer focus and improve operational and financial efficiency. Retail Initiatives Brand and Customer Loyalty Launched the first branded fuel in India i.e.
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