Bharat Petroleum Corporation Ltd. Investor Presentation August 2019 - PowerPoint PPT Presentation

Bharat Petroleum Corporation Ltd. Investor Presentation August 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 3,376 bn in MMT FY19 43.1 FY19 and INR 2,773 bn in FY18 Market Sales 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 0 10 20 30 40 50 − Domestic market share of 21% during FY19 • Majority Govt. of India shareholding of 53.29% and explicit Govt. MMT support through under-recovery compensation mechanism Refining Capacity • # 275 ranking on Fortune 2019 global list; ranks 6 th among the only seven Indian companies on the list 38.3 38.3 36.5 30.5 30.5 • The Govt. of India conferred BPCL with “MAHARATNA” status in Sep 2017 FY16 FY17 FY18 FY19 Jun-19 • Well positioned to meet market demand across India through INR bn Strategically located Refineries and Marketing Infrastructure 939.79 927.25 Market Capitalization^ 851.32 833.65 • Successful foray into upstream business. 653.9 • Ratings at par with the Sovereign − Baa2 (Outlook Positive) by Moody’s / BBB- (Outlook Stable) by Fitch FY16 FY17 FY18 FY19 Jun-19 ^ 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 Kochi 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 2018 1977 distribution of agreement with Petronet to 12 enhanced commission Natural Gas in LNG MMTPA to 9.5 ed in March Bina capacity enhanced to 2017 entire capital MMTPA 2014 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 2002 Acquisition of upstream 1998 1976 assets in Russia Integrated Refinery Expansion Project (IREP) at Kochi Refrigerated Started operations at its LPG storage Bina refinery by launching Commissioned Energy and handling its crude distillation unit Entered into Efficient CDU IV with facility at upstream business Commissionin replacement of CDU I & II at Restructured business into JNPT and First in the Indian Euro III / IV products g of 6 MMTPA Mumbai Refinery and formed Bharat corporate centre, Strategic Uran LPG Oil Industry to roll launched at Mumbai and Petro Resources Bina Refinery Business Units (SBU) and Commissioned Kota Jobner plant out ERP Solution Kochi Refinery Shared Entities Limited (BPRL) Pipeline and Terminal 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. 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/ Refinery Aviation Retail LPG Aviation Lubricants Gas Commercial  Refining capacity  26% market  26.68% market  Currently 8,000+  26% market  18.83% market  50+ major LNG share 1 in ATF share 1 share 1 share 1 customers of 38.3 MMTPA customers  15% of the  14,802 retail  Currently 5,907  56 Aviation  Currently 16,000 country’s outlets distributors service stations customers  123 depots  52 LPG bottling  More than 1000+ refining capacity /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  City gas Kochi, outlets, branded of 68mn incl. Supply Chain through Numaligarh and fuels ex: Speed retail and bulk Management MAFFFL and distribution networks in 10 Bina DAFFL cities + 13 new GAs Market share includes sale by PSU as well as private oil marketing companies. All figures as of 30 th June 2019 1. 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 9.1 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 $7.5/bbl during Q1FY20 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 11