Bharat Petroleum Corporation Ltd. Investor Presentation November - PowerPoint PPT Presentation

Bharat Petroleum Corporation Ltd. Investor Presentation November 2018

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 9 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 41.2 FY18 and INR 2,420 bn in FY17 Market Sales 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 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. MMT support through under-recovery compensation mechanism Refining Capacity • # 314 ranking on Fortune 2018 global list; ranks 6 th 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 FY15 FY16 FY17 FY18 H1FY19 • Well positioned to meet market demand across India through INR bn Strategically located Refineries and Marketing Infrastructure 939.79 927.25 Market Capitalization^ 811.61 653.9 • 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 H1FY19 ^ 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 CCR 1 unit at GoI acquired Burmah BPCL and GAIL BPCL entered the LNG MR capacity enhanced to Kochi 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 capacity Refinery BPCL and Videocon JV Resources 2018 1977 distribution of agreement with Petronet enhanced commission acquired 50% stake in Limited for Natural Gas in LNG to 9.5 ed in March Brazil's EnCana focus on Gas 2017 entire capital MMTPA 2014 Brasil Petroleo business region 2016 2015 2014 2012 2011 Acquisition of conferred with upstream “MAHARATNA” 2009 assets in status in Sep Russia 2008 2017 2007 Integrated 2006 Refinery 2003 Expansion 2002 1998 1976 Project (IREP) at Kochi Refrigerated Commissioned Energy Started operations at its LPG storage Efficient CDU IV with Bina refinery by launching and handling replacement of CDU I & II its crude distillation unit Entered into facility at at Mumbai Refinery upstream business Commissioning of Restructured business into JNPT and Commissioned Kota Jobner First in the Indian Euro III / IV products 6 MMTPA and formed Bharat corporate centre, Strategic Uran LPG Pipeline and Terminal Oil Industry to roll launched at Mumbai and Petro Resources Bina Refinery Business Units (SBU) and plant out ERP Solution Kochi Refinery Shared Entities Limited (BPRL) 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% 50.00% 22.50% 50.00% Kochi Salem Bharat Stars Bharat Oman Indraprastha Gas Matrix Bharat Pipeline Pvt. Services Pvt Refineries Limited Limited Pte Limited Limited Limited 37.00% 25.00% 11.00% 25.00% Bharat Numaligarh Ratnagiri Refinery Delhi Aviation PetroResources Central UP Gas GSPL India LNG Refinery Limited & Petrochemicals Fuel Facility (P) Limited Limited Transco Limited Limited 12.50% 22.50% 21.68% 11.00% Maharashtra Kannur GSPL India Petronet LNG Natural Gas International Aviation Gasnet Limited Gas Limited Airport Ltd. Services 49.94% 25.00% 74.00% 100.00% Mumbai Aviation Bharat Gas BPCL-KIAL Fuel Others Sabarmati Gas Fuel Facility (P) Resources Farm Facility Pvt. Limited Limited Limited Ltd. 20.73% 50.00% Haridwar Natural FINO Paytech Ltd Gas Private Limited 7 50.00% 7 Goa Natural Gas Pvt. Ltd.

2. Business Overview Credit Highlights 8

Diversified Product Offering and Presence Across Value Chain Industrial/ Refinery Aviation Retail LPG Aviation Lubricants Gas Commercial  Refining capacity  26.3% market  26.6% market  Currently 8,000+  25.2% market  16.3% market  50+ major LNG share 1 in ATF share 1 share 1 share 1 customers of 36.5 MMTPA customers  15% of the  14,565 retail  Currently 5,422  43 Aviation  Currently 16,000 country’s outlets distributors service stations customers  115 depots and  51 LPG bottling  More than 1000+ refining capacity 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 “Apron Fuel  City gas Kochi, outlets, branded of 68mn incl. Supply Chain Numaligarh and fuels ex: Speed retail and bulk Management Management distribution System” networks in 10 Bina cities + 11 new GAs Market share includes sale by PSU as well as private oil marketing companies. All figures as of 30 th September 2018 1. 2. Source : Ministry of Petroleum and Natural Gas. 9

Refining Coverage Installed Capacity Refining Throughput Refining Capacity 40.00 31.25* 29.84* 3.35 28.69* 29.24* Mumbai – 240 kbpd 28.55 * 30.00 2.81 3.18 3.20 3.10 2.73 2.68 2.52 2.61 2.78 14.29 20.00 13.60 13.41 12.96 13.03 Kochi – 310 kbpd 10.00 11.79 14.25 10.71 10.32 10.40 - BORL – 120 kbpd FY14 FY15 FY16 FY17 FY18 MMT Kochi Mumbai Numaligarh Bina 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 $11.4/bbl during Q2FY19 and $11.7/bbl during FY18 Pipelines : Bina refinery to consolidate refining portfolio required to support downstream retailing market in Northern India 11 11