Bharat Petroleum Corporation Limited Investor Presentation August 2020 1 Disclaimer 2 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 2 3 Corporate Overview Business Overview Industry Overview Page 4 Page 9 Page 30 3 1. Corporate Overview 4 Introduction India’s 2nd largest Oil Marketing Company 2nd (OMC) with standalone domestic sales volume of 309 Ranking on Fortune 500- 2020 global list over 43.10 MMT and Market share of 22% during FY20 3rd India’s 3rd largest in terms of Refining Capacity 44th Rank on Platt’s Top 250 Global Energy (15.33 % of India’s refining capacity) 44 Company Rankings 2019 1200 BPCL’s Market Capitalization recently touched ₹ 6th India’s 6th largest company by turnover Bn 1200 Bn Recipient of Star PSU Award in The Govt. of India conferred BPCL with Balanced portfolio with Strategically located 2018 “MAHARATNA” status in Sep 2017 Refineries and Marketing Infrastructure 5 BPCL 5 Year Key Physical Indicators REFINING CAPACITY MARKET SALES (MMT) Market Capitalization (MMT) (INR billion) 43.07 43.10 939.79 927.25 38.30 38.30 38.30 833.65 811.63 36.50 41.21 30.50 685.05 37.68 36.53 FY17 FY18 FY19 FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Q1 FY21 Entire throughput/capacity of Bina Refinery & NRL have been Market Capitalization figures as on period end considered India’s Leading Oil and Gas Company with presence across the Hydrocarbon Value Chain 6 BPCL Evolution 7 GoI acquired Burmah Shell BPCL and GAIL BPCL entered the LNG Entered into Kochi Refinery CCR1 unit at Formation of Bharat Gas Refineries. Name changed formed a JV, IGL, for market by signing a upstream business capacity Mumbai Resources Limited for focus to BPCL in 1977 distribution of Natural gas sales purchase and formed Bharat enhanced Refinery on Gas business Gas in entire capital agreement with Petro Resources to 9.5 MMTPA commissioned region Petronet LNG Limited (BPRL) in March 2014 Bina capacity enhanced to 7.8 MMTPA conferred with “MAHARATNA” status in Sep 2017 KR modernized and capacity 2009 enhanced to 15.5 MMTPA BPCL Evolution 2008 2006 2005 2003 Acquisition of upstream 2002 1976 1998 assets in Russia Integrated Refinery Expansion Project (IREP) at Kochi Started operations at its Bina Refrigerated LPG storage and refinery by launching its crude Commissioned Energy Efficient handling facility at distillation unit CDU IV with replacement of CDU I JNPT and Uran Restructured business into Mumbai Refinery Commissioning of & II at Mumbai Refinery First in the Indian Oil LPG plant corporate centre, Strategic capacity enhanced to Euro III / IV products launched 6 MMTPA Commissioned Kota Jobner Industry to roll out commissioned Business Units (SBU) and 12 MMTPA at Mumbai and Kochi Refinery Bina Refinery Pipeline and Terminal Shared Entities ERP Solution 7 Major Subsidiaries, JVs & Associates Subsidiaries Joint Ventures & Associates City Gas Aviation Upstream Refining Refining Pipelines Trading Activities Distribution Services 63.38% 100.00% 61.65% 50.00% 25.00% 22.50% 50.00% 50.00% Kochi Salem Bharat Stars Ratnagiri Refinery & Indraprastha Gas Matrix Bharat Pte Pipeline Pvt. Services Pvt Petrochemicals Limited Limited Limited Limited Limited 25.00% 11.00% 37.00% Bharat Bharat Oman Numaligarh PetroResources Central UP Gas Delhi Aviation Fuel Refineries Limited Refinery Limited GSPL India Transco LNG Limited Limited Facility (P) Limited 12.50% 22.50% 11.00% 16.20% Kannur Maharashtra Petronet LNG Gas GSPL India Gasnet International Airport Natural Gas Limited Limited Ltd. 100.00% 49.94% 25.00% 25.00% Bharat Gas Mumbai Aviation Resources Limited Sabarmati Gas IHB Pvt. Ltd. Others Fuel Facility (P) Limited Limited 50.00% 74.00% 20.73% BPCL-KIAL Fuel Haridwar Natural Farm Facility Pvt. Gas Private Limited Ltd. FINO Paytech Ltd 50.00% Goa Natural Gas Pvt. Ltd. 8 2. Business Overview 9 Asset Portfolio Refining Upstream 9 Countries 27 Blocks 25+ Global Partners Total, ENI, ONGC, Rosneft, Mitsui, OIL, Presence Russia, Brazil, Mozambique, UAE, 26 Exploration Indonesia, Australia, East Timor, Israel, Discoveries Japan Energy, ADNOC, Petrobras etc. E&P India Upstream Refining 4 Refineries 38.30 MMT 937 km SBM Infrastructure Strategically located Refining Capacity Vadinar-Bina Crude oil pipeline at Vadinar and Kochi Refining 100% BORL & NRL considered Midstream & Midstream Downstream Marketing 78 Retail 52 LPG 58 Aviation 4 Lube 37 Geographical Infrastructure Depots Bottling Plants Service Stations blending plants Areas incl. JVs Storage Pipeline 2241 Km Specific & Multi 17.84 MMTPA Design capacity Network of Pipeline Network Distribution Product Pipeline Network Distribution ~16,490 Retail Outlets ~6,120 LPG Distributors Network Marketing STRATEGIC BUSINESS UNITS 7 ENTITIES (Support Functions) 23 EMPLOYEES 11,025 10 *Numbers in the slide are for period ending 30th June 2020. Diversified Product Offering and Presence Across Value Chain Industrial/ RefineryAviation Retail LPG Aviation Lubricants Gas Commercial Refining capacity of 24.59% market 25.70% market Currently 8,000+ 22.75% market 17.55% market 50+ major LNG 38.3 MMTPA share1 share1 customers share1 in ATF share1 customers 15% of the country’s ~16,490 retail outlets Currently over 58 Aviation service Currently 18,000+ refining capacity 78 depots 6120 distributors stations customers /installations 52 LPG bottling More than 400+ plants grades of products Strategically Pan India presence Various Innovative Reliable, Present at all the Major OEM tie ups Emerging Markets located refineries across products offerings with innovative and major gateways such as Tata ventures in allied caring supplier of and airports for into Motors, Honda, business I&C products plane services Genuine Oil, TVS etc. 100% subsidiary Four refineries in Pioneer in branded Current Domestic Pioneer in IT Fuel Farm Product BGRL for focus on Mumbai, Kochi, retail outlets, customer base 8.29 integration and Operations through customization Gas business Numaligarh and branded fuels ex: Crores Supply Chain MAFFFL and Interest in 37 GAs Bina Speed Management DAFFL 1. Market share includes sale by PSU as well as private oil marketing companies. For Lubricants it represents on PSUs share. All figures as of 30th June 2020. 11 2. Source : Ministry of Petroleum and Natural Gas, PPAC 3. Numbers in the slide are for period ending 30th June 2020 Refining Coverage Installed Capacity Refining Throughput Refining Capacity 33.04 34.43 38.10 39.60 42.29 45.00 BORL Mumbai – 12 40.00 MMTPA 8.00 5.69 NRL 35.00 6.75 2.90 2.38 6.36 Kochi – 15.5 30.00 6.40 2.81 2.68 MMTPA 25.00 2.52 14.78 15.14 14.29 20.00 13.41 13.60 BORL – 7.8 15.00 MMTPA 10.00 16.77 14.25 16.23 Mumbai 5.00 10.71 11.79 Refinery Numaligarh – 3 MMTPA 0.00 Kochi FY16 FY17 FY18 FY19 FY20 Kochi Mumbai Numaligarh Bina Refinery Entire throughput of Bina Refinery & NRL have been considered Refinery Utilization rates 937-km cross country Four Strategically located Refineries are BS VI & IMO Flexibility to process low & above name-plate pipeline to source crude to refineries across India Compliant high sulphur Crude capacities BORL 12 Mumbai Refinery- MR .Commissioned in 1955 with processing capacity of 2.2 MMTPA now augmented to 12 MMTPA. .Flexibility to process low & high sulphur Crude, consistently, refining throughput exceeds designed capacity .Connected with MMBPL multi product pipeline from Mumbai to Delhi designed to evacuate 6 MMTPA of petroleum products • Processed ~94 types of crudes • API Range: 37 to 39.8 .Lowest SOX emission refinery of country (< 10 T/d) • Lubes refinery .Ongoing Projects- Marine Oil Terminal Revamp, Lubricating Oil • Hydrocracker & 2 FCCUs Base Stock Revamp, Reformer Feed Unit Revamp and Kerosene Hydro Treating Unit MR is one of the most versatile refineries in India with state of the art monitoring