#11 Bharat Petroleum Corporation Limited Corporate Presentation December 2019 Bharat Petroleum energising lives#22 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. Bharat Petroleum energising lives#33 Presentation Agenda 1 2 3 4 Introduction BPCL Evolution Asset Portfolio Value chain presence and Group Companies Performance Highlights Physical and Financial Performance Business Units Overview of various businesses of BPCL 5 6 7 8 Upstream Business Global spread Expanding Horizons Ongoing & Upcoming Projects Strategic Vision Foundation and pillars of BPCL's vision Meet the Leadership Team Introduction to leadership team Bharat Petroleum energising lives#4Introduction 2nd India's 2nd largest Oil Marketing Company (OMC) with standalone domestic sales volume of over 43.07 MMT and Market share of 21% during FY19 275 Ranking on Fortune 500- 2019 global list 3rd India's 3rd largest in terms of Refining Capacity (15.38% of India's refining capacity) 44 44th Rank on Platt's Top 250 Global Energy Company Rankings 2019 6th India's 6th largest Public Listed company by standalone turnover of $48 Bn in FY19 and $39.6 Bn in FY18 $17 Bn Recipient of Star PSU Award in 2018 BPCL's Market Capitalization recently touched $17 Bn The Govt. of India conferred BPCL with "MAHARATNA" status in Sep 2017 Balanced portfolio with Strategically located Refineries and Marketing Infrastructure 4 Conversion 1 Mn bbl/day = 50 MMTPA 1 USD= INR 70 Bharat Petroleum energising lives#55 BPCL Evolution FID for Mozambique Gas Project Petrochemcial Project (PDPP) mechanically completed in KR BGRL formed for focus on Gas BORL expansion to 156 kbpd Bharat Petroleum energising lives CAGR Revenue (Consolidated): 16% PAT (Consolidated): 22% Becomes Navratna 1997. Becomes Upstream Investments in Maharatna 2017 Russia Commissioned Refinery (120 kbpd) in JV with Oman Oil Co. Kochi Refinery merged with BPCL BPRL formed for Upstream 1976 1990 2000 2010 2019 Revenue PAT $ 79 Mn $ 0.2 Mn $697 Mn $18 Mn $4769 Mn $101 Mn $19107 Mn $246 Mn $48697 Mn $1218 Mn NRL commissions Numaligarh Refinery Entry into Gas Business : Indraprastha Gas Ltd. & Petronet LNG (JVs) Nationalisation of Burmah Shell. Mumbai Refinery Commissioned 1928 BURMAH-SHELL Oil S&D CO. IS BORN 1955 1976 1998 1999 2006 2011 2016 2018 2019#6Asset Portfolio Midstream & Downstream Upstream E&P Upstream Presence 9 Countries Russia, Brazil, Mozambique, UAE, Indonesia, Australia, East Timor, Israel, India Refining 4 Refineries Infrastructure Strategically located 25 Blocks 25+ Global Partners 26 Exploration Discoveries Total, ENI, ONGC, Rosneft, Mitsui, OIL, Japan Energy, ADNOC, Petrobras etc. 766 kbpd 937 km Refining Capacity* SBM Vadinar-Bina Crude oil pipeline at Vadinar and Kochi Refining Marketing 77 Retail Infrastructure Depots 52 LPG 61 Aviation 4 Lube Bottling Plants Service Stations blending plants 37 Geographical Areas incl. JVs Storage Pipeline Network 2241 Km Multi Product Pipeline Network 17.84 MMTPA Design capacity of Pipeline Network Distribution Distribution Network ~15,000 Retail Outlets ~6,000 LPG Distributors Marketing *Including 3 MMTPA capacity of NRL 6 STRATEGIC BUSINESS UNITS 7 ENTITIES (Support Functions) 23 JOINT VENTURES 10 EMPLOYEES 11,971 Bharat Petroleum energising lives#77 Major Subsidiaries, JVs & Associates Subsidiaries UPSTREAM TM CUGL Goa Natural Gas Goa Natural Gas Pvt.Ltd. A Joint Venture of GAIL Gas Ltd & BPCL HNG Joint Ventures/ Associates CITY GAS DISTRIBUTION igl Sabarmati Gas Ltd. (A Joint Venture of GSPC and BPCL) Sabarmati Gas MNGL Bharat PetroResources REFINING STARS BHARATS SERVICES NUMALIGARH REFINERY NRL LIMITED Trusted partnership GrGITL AVIATION SERVICES Bharat Petroleum energising lives Maharashtra Natural Gas Ltd. (A JOINT VENTURE OF GAIL (India) Ltd & BPCL) MAFFFL Mumbai Aviation Fuel Farm Facility Pvt Ltd DAFFPL KANNUR International Airport Ltd. Fuel to fly GSPL INDIA TRANSCO LIMITED KSP PL GAS A BPCL-IOCL JOINT VENTURE BHARAT Gas Resources REFINING BHARAT OMAN REFINERIES LIMITED RRPCL REDEFINING REFINING PIPELINES TRADING GSPL India Gasnet Limited LNG BKFF Pvt Ltd. IHB INDIA PVT. LTD OTHERS MXB MATRIX BHARAT PETRONET LNG LIMITED Fino Fino Payments Bank#8Major Subsidiaries, JVs & Associates Bharat Petroleum energising lives Enterprise Name Type BPCL Shareholding Enterprise Name Type BPCL Shareholding Bharat PetroResources Limited Subsidiary 100% Kochi Salem Pipeline Pvt. Limited JV 50% Numaligarh Refinery Limited Subsidiary 61.65% GSPL India Transco Associate 11% Bharat Gas Resources Limited Subsidiary 100% GSPL India Gasnet Associate 11% Bharat Oman Refineries Limited JV 50% IHB Pvt. Ltd. JV 25% Ratnagiri Refinery & Petrochemicals Limited JV 25% Bharat Stars Services Pvt Limited JV 50% Indraprastha Gas Limited Associate 22.50% Delhi Aviation Fuel Facility (P) Limited JV 37% Central UP Gas Limited JV 25% Maharashtra Natural Gas Limited JV 22.50% Sabarmati Gas Limited Haridwar Natural Gas Private Limited Goa Natural Gas Pvt. Ltd. Matrix Bharat Pte Limited ≥ ≥ ≥ ≥ Kannur International Airport Ltd. Mumbai Aviation Fuel Facility (P) Limited Associate 21.68%* JV 25% JV 49.94% BPCL-KIAL Fuel Farm Facility Pvt. Ltd. JV 74% JV 50% Petronet LNG Limited Associate 12.5% JV 50% JV 50% FINO Paytech Ltd Associate 20.73% 80 Total investments in all subsidiaries is $ 874 Mn and all JVs/Associates is $ 668 Mn as on 30.09.2019 (Historical Cost basis) * As per JV Agreement Conversion 1 USD= INR 70#9Performance Highlights (FY 2018-19 Consolidated) CRUDE THROUGHPUT 792 kbpd* CAGR 4% MARKET SALES 43.30 MMT CAGR 4% REVENUE $ 49 Bn CAGR 6% NET PROFIT $ 1.12 Bn CAGR 11% NET WORTH Conversion 1 USD = INR 70 9 * Entire throughput of Bina Refinery considered *Includes NRL throughput of 58 kbpd $ 5.8 bn CAGR 11% CAGR For 5 years from FY15 to FY19 Bharat Petroleum energising lives#1010 10 FY15 610 610 610 FY16 FY17 FY18 FY19 *Entire throughput/capacity of Bina Refinery & NRL have been considered REFINING CAPACITY* (kbpd) 730 766 FY15 BPCL 5 Year Key Physical Indicators 647 660 689 REFINING THROUGHPUT* (kbpd) 761 792 * Capacity Enhancement 2005: MR from 180 to 240 kbpd 2017: KR from 190 to 310 kbpd 2018: BORL from 120 to 156 kbpd ◆ Refining Growth Throughput increased at CAGR of 4.12 % over 5 years Consistently operating at more than 100% of design capacity Market Penetration Sales growth with CAGR of 4.38% over 5 years Diversified portfolio of products and international expansion 34.95 36.83 CONSOLIDATED MARKET SALES (MMT) Bharat Petroleum energising lives FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 37.74 41.38 43.30#11* 36.96 31.32 FY15 FY16 FY17 Financial Ratios Total Debt/EBITDA Total Debt-Equity * Adjusted Debt-Equity 11 Conversion 1 USD= INR 70 Adjusted for bonds outstanding as on period end 34.82 BPCL 5 Year Key Financial Indicators (Consolidated) 39.92 REVENUE ($ Bn) PROFIT AFTER TAX ($ Bn) 48.70 0.73 1.16 1.36 1.40 1.22 4.26 ADJUSTED CAPITAL EMPLOYED* FY18 FY19 FY15 FY16 FY17 FY19 FY18 FY15 FY16 FY17 FY18 FY19 3.40 4.21 FY 15 FY16 FY17 FY18 FY19 Sept-19 2.14 1.61 2.30 2.22 2.61 3.51 1.07 0.79 1.09 0.98 1.10 1.11 0.85 0.62 0.93 0.85 0.97 0.99 ($ Bn) CAPITAL EMPLOYED 4.72 7.18 4.68 5.50 5.83 NET WORTH 10.51 9.54 Bharat Petroleum energising lives#12Business Units 12 REFINERIES Bharat Petroleum Aviation Service Bharat Feiricu RETAIL GNER MUND TREAT 15.8 7515 10.0 Jan-2 भारवर्गत LPG Bharal AVIATION INDUSTRIAL & COMMERCIAL GAS MAK LL GREATE MA MAK MAK MAK 2T LUBRICANTS Bharat Petroleum energising lives#1313 Refineries MUMBAI REFINERY KOCHI REFINERY BORL S Mumbai Refinery Kochi Refinery BORL • 240 kbpd Capacity • . Processed 93 types of crudes API Range: 27 to 52.5 • Lubes refinery . . 310 kbpd Capacity Processed 96 types of crudes • API Range: 24 to 48 • VGO Treater, Petrochemical FCCU & FCCU Hydrocracker & 2 Nos. FCCUs • Delayed Coker unit for bottom upgradation BHARAT OMAN REFINERIES LIMITED • 156 kbpd Capacity . Processed 19 types of crudes • API Range: 28 to 40 • Hydrocracker . Delayed Coker unit for bottom upgradation Refineries are BS VI & IMO Compliant Flexibility to process low & high sulphur Crude Bharat Petroleum energising lives#1414 156 6.0 17.9 Retail 6.4 17.6 Sales Volume (MMT) Gasoline Gas Oil 7.0 18.6 FY16 FY17 FY18 FY19 Throughput per RO per month (KL) 187 162 IOCL BPCL HPCL PSUs 163 7.4 18.9 5.3 12.2 FY20 (Till Nov) Infrastructure ✓ 14 Installations ✓ 23 Tap Off Points ✓ 40 Depots Tankage Network 3.6 Million KL ✓ ~15,000 retail outlets. 350 CNG stations ✓ 75 Auto LPG stations Pipeline Network ✓ ~900 SKO dealers Over 2000 Kms ■ Service stations located across cities, highways and rural markets ■ Highest throughput per RO amongst PSUs in India ■ Pioneer in IT Integration with 80% service stations fully automated ■ Allied services at service stations giving edge over competitors Bharat Petroleum energising lives#1515 Liquefied Petroleum Gas [LPG] 25.80% 25.70% Market Share* 25.90% 26.30% FY15 FY16 FY17 FY18 FY19 Lubricants THE WINNING TEAM MAK MAK MAK MAK MAK MAK ATFA MAK MAK MARGAAN MAK MAK GOLD MAK MAK MAK MAK MAK MAK MAK WVK WWK WVK WVK WVK WVK *Market Share is amongst PSUs 26.50% Sales Customers ■ Sales of 6.49 MMT in FY 19, with 8.4 % YOY growth (highest amongst PSUs, 9.4% CAGR of last 5 years) ■ 52 LPG Bottling plants with capacity of 6.7 MMTPA Network ■ Over 6,000 strong Distributors network across India ■ Customer Base of over 81 Mn households MAK MAK MAK MAK MAK MAK MAK 27 Bharat Petroleum MAK LUBRICANTS Network Products International WWK WVK www. www www MAK makes it possible. footprint 4 Lubricant plants in India 18000+ channel partners & Industrial customers 766 SKUs and 402 grades of lubricants with sales of 0.24 MMT in FY19 under brand name "MAK" International presence in SAARC and Middle East countries Bharat Petroleum energising lives#16FY15 23.60% Aviation 22.79% Market Share* 25.02% FY16 FY17 FY18 25.63% FY19 25.93% Customers Supply of ATF to major domestic and international airlines Network Presence at 61 airports in India Association 6 JVs for establishing fuel farms at Airport and Airport Development Industrial & Commercial 12.80% 12.60% Market Share* 12.70% 15.00% 15.60% Customers Products Growth Catering 8000+ customers successfully with sales of 5.75 MMT in FY19 (YOY Growth of 10%) ■ Innovative product basket including Pharma Grade Hexane, Polymer Grade Proplyene and many others ■ Consistent growth in sales and profitability in a highly competitive business environment 16 *Market Share is amongst PSUs FY15 FY16 FY17 FY18 FY19 Bharat Petroleum energising lives#1717 Gas Business . 7 Supply LNG supply security: Long term tie ups of 0.85 MMTPA valid till 2028 at Dahej 0.56 MMTPA valid till 2036 at Kochi 1 MMTPA LNG tied up from Mozambique starting 2025- 26 for 15 years. Also, Short Term /Spot volumes ranging from 0.80 to 1.0 MMTPA are tied up based on demand. City Gas Distribution 37 Geographical Areas (GAS) which it operates either as wholly-owned or through JVs with other companies. CAGR of 14% (Growth from 0.25 to 1.8 MMTPA in last 15 years) Journey Formation of Wholly owned subsidiary- BGRL for better focus on gas business 2018 Foray into Bulk Gas Marketing with Commissioning of PLL's LNG Terminal at Dahej (GJ). 2004 Entry into Gas business through IGL (JV of GAIL & BPCL) Entered JV to form Petronet LNG 1998 Bharat Petroleum energising lives#18Upstream - Global Spread Production Appraisal/ Development Exploration ■ 2.7 MMTOE eqv. production Presence in 5 continents, 9 countries ▪ 28 Partners Israel 1 Block 32 2 TYNGD Russia 2 Vankorneft Mozambique 1 Area 1 2 BM-SEAL-11 Brazil 1 2 BM-C-30 BM-POT-16 18 BPCL pursues its Upstream Business through its wholly owned Subsidiary Company - Bharat Petroresources Limited 26 Exploration Discoveries UAE 1 1 Lower Zakum Onshore 1 Timor Leste 1 JPDA 06-103 Bharat Petroleum energising lives 3 Cauvery Basin 3 Rajasthan Basin India 3 Cambay Basin Assam-Arakan 1 3 Mumbai Basin Indonesia 1 Nunukan Australia 1 EP413#19Ongoing Projects Kochi Refinery - MS Block Project for BS VI grade gasoline and Maximization of Naptha to gasoline ($ 470 Mn) LPG import terminal at Haldia, West Bengal ($157 Mn) Retail Infrastructure: POL Terminal with Railway Siding at Pune, Gulbarga, & Coastal terminal at Krishnapatnam. ($ 153 Mn) Kochi - Diversification into Niche Petrochemicals PDPP Project- Acrylic Acid, Oxoalcohol, Acrylates ($ 750Mn) Bina Kanpur Product Pipeline & other pipelines ($ 282 Mn) 19 Conversion 1 USD= INR 70 Bharat Petroleum energising lives#20Upcoming Projects 20 20 Bharat Petroleum energising lives Investments in Mozambique - FID sanctioned UPSTREAM INVESTMENTS IN GAS My MARKETING INFRASTRUCTURE PETROCHEMICALS PIPELINES RASAYANI O BPCL has been awarded 11 GAs in 9th round and 2 GAs in 10th round of bidding O Expansion of marketing infrastructure across all business verticals including 6000 new retail outlets in the next three years Petrochemical Project(Polyols) at Kochi ($ 1.59 Bn) to manufacture Propylene Glycol, Ethylene Glycol, Polyol Cross country LPG pipeline from Kandla to Gorakhpur through a JV Marketing Infrastructure & other facilities at Rasayani near Mumbai Conversion 1 USD= INR 70#2121 Meet the Leadership Team N Vijayagopal Director (Finance) • Vast experience of 32 years in financial management He has held various senior positions in BPCL including its upstream and pipeline subsidiary companies and handled various areas of finance covering Refinery/ Corporate Accounts, Treasury Management, Risk Management, Taxation and Budgeting, Fund Management etc. R Ramachandran D Rajkumar Director (Refineries) Chairman & Managing Director • Over 34 years of industry experience •Has previously held the MD, Bharat post of Oman Refineries Limited Has experience across refinery product operations, planning, services, technical project conceptualization project financing and •He has been acclaimed as one of the top 100 "Most Influential CEOs" in the world, by the CEOWORLD Magazine July'19 • He has over 33 years of experience out of which 15 years of experience as MD of BPCL's JV & Subsidiary companies •Has experience across integrated upstream and downstream oil sector Arun Kumar Singh Director (Marketing) Over 34 years of experience in Oil Marketing •Director on the board of Bharat Gas Resources Ltd. Previously held posts of Chairman, Indraprastha Gas Ltd. & President, BPRL looking after Africa and Australasia. He has headed various Business Units and Entities in BPCL viz. Retail, LPG, Pipelines and Supply Chain Optimization etc K Padmakar Director (HR) • Over 35 years of experience with BPCL having worked across the entire Human Resource Management landscape • He has also held various positions of responsibility encompassing HR Policy and strategy and was responsible for Organizational Learning & Talent Management Bharat Petroleum energising lives#2222 Awards Galore PRSI BOOK OF ASIA RECORDS Best Public Sector Organisation 2018¹ CII Leadership in HR Excellence Award. Largest Corporate Brand Engagement Programme In Asia. FIPI Federation of Indian Petroleum Industry Best Project Management Company 20182 Excellent Corporate Governance 20183 Best Oil Marketing Company 2019 teri SKOCH GROUP GROWTH | LIVELIHOODS | EQUITY Leaders in Sustainability 4.0 award- Frost & Sullivan and TERI. SKOCH award for market leadership and CSR. Thank you! เย in 1. PRSI: Public Relations Society of India 2. Federation of Indian Petroleum Industry- *Best Project Management Company 2018* 3. Golden Peacock (Institute of Directors) awarded BPCL *Excellent Corporate Governance 2018* I Bharat Petroleum energising lives