Bharat Petroleum Corporation Ltd.

Investor Presentation

February 2017
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 5th largest company by turnover over INR 1,891 bn in FY16 MMT
and INR 2,379 bn in FY15 9MFY17 28.4

Market Sales
FY16 36.5
• India’s 2nd largest Oil Marketing Company (OMC) with domestic FY15 34.5
sales volume of over 36.53 MMT in FY16 and 34.45 MMT in FY15 FY14 34.0
FY 13 33.3
− Domestic market share of 21% during FY16
FY 12 31.1
• Majority Govt. of India shareholding of 54.93% and explicit Govt.
support through under-recovery compensation mechanism

• # 358 ranking on Fortune 2016 global list; ranks 5th among the only MMT

Refining Capacity
seven Indian companies on the list

• Well positioned to meet market demand across India through

Strategically located Refineries and Marketing Infrastructure
30.5 30.5 30.5 30.5 30.5 30.5
• India’s only OMC with a successful foray into upstream business
(1). BPCL through its subsidiary BPRL has Participating Interests
in 17 blocks across 6 countries
FY12 FY13 FY14 FY15 FY16 9MFY17
− Estimated recoverable reserves of about 75 TCF till date in
Rovuma basin (Mozambique) INR bn

− Estimated resources of 200+ MMBOE(2) till date in Wahoo Market Capitalization^

basin (Brazil)

• Ratings at par with the Sovereign

− Baa3 (Outlook Positive) by Moody’s / BBB- (Outlook Stable)

by Fitch

(1) Also reflected in consistently improving market capitalization

(2) Wood Mackenzie, Company reports
MMBOE - Million barrels of oil equivalent TCF- Trillion cubic feet of gas
FY means Financial year ending 31st March Source: National Stock Exchange
^ Market capitalization figures as on period end

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 Refinery CCR1 unit at
Shell Refineries. Name formed a JV, market by signing a gas 12 MMTPA. capacity Mumbai
changed to BPCL in IGL, for sales purchase BPCL and Videocon JV enhanced Refinery
1977 distribution of agreement with Petronet acquired 50% stake in to 9.5 MMTPA commissioned in
Natural Gas in LNG Brazil's EnCana March 2014
entire capital Brasil Petroleo
region 2016

2015

2014

2012 Acquisition of
upstream
assets in
2011 Russia

2009 Integrated
Refinery
2008 Expansion
2007
Project
2006 (IREP) at
2003 Kochi
1998 2002
1976

Commissioned
Energy Efficient
Started operations at its Refrigerated LPG CDU IV with
Bina refinery by launching storage and replacement of CDU I
its crude distillation unit handling facility at & II at Mumbai
Entered into JNPT and Uran Refinery
Restructured business into upstream business Commissioning of
First in the Indian LPG plant Commissioned Kota
corporate centre, Strategic and formed Bharat Euro III / IV products 6 MMTPA
Oil Industry to roll commissioned Jobner Pipeline and
Business Units (SBU) and Petro Resources launched at Mumbai and Bina Refinery
out ERP Solution Limited (BPRL) Kochi Refinery Terminal
Shared Entities

1. CCR: Continuous Catalytic Regeneration Reformer Unit.

6
Major Subsidiaries/ JVs

Subsidiaries Joint Ventures

City Gas Aviation

Upstream Refining Refining Pipelines Trading Activities
Distribution Services
100.00% 61.65% 50.00% 50.00% 50.00% 50.00%
22.50%
Bharat Oman Kochi Salem Bharat Stars
Indraprastha Gas Matrix Bharat
Refineries Limited Pipeline Pvt. Services Pvt
Limited Pte Limited
Limited Limited

25.00% 11.00% 37.00%

Bharat
Numaligarh Delhi Aviation
PetroResources Central UP Gas GSPL India
Refinery Limited Fuel Facility (P) LNG
Limited Limited Transco
Limited
12.50%
Aviation 22.50% 11.00% 21.68%
Pipelines
Services
Maharashtra Kannur
GSPL India Petronet LNG
100% Natural Gas International
Gasnet Limited
74.00% Limited Airport Ltd.
16.00%
49.94% 25.00%
BPC-KIAL Fuel
Petronet CCK Petronet India Mumbai Aviation
Farm Facility Sabarmati Gas
Limited Limited Fuel Facility (P)
Limited Limited
Limited

50.00%

Haridwar Natural
Gas Private
Limited
7
7
Diversified Product Offering and Presence Across Value Chain

Industrial/
Refinery
Aviation Retail LPG Aviation Lubricants Gas
Commercial

 Refining capacity  26.7% market  25.9% market  Currently 7,000  23.4% market  20.4% market  Currently 54
of 30.5MMTPA share2 share2 customers share2 in ATF share2 major LNG
 13% of the  13,700 retail  Currently 4,618  40 Aviation  Currently 16,000 customers
country’s outlets distributors service stations customers
refining capacity1  118 depots and  50 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.

 Four refineries  Pioneer in  Current  Pioneer in IT  Only OMC to  Product  One JV in LNG
in Mumbai, branded retail customer base integration and implement customization
Kochi, outlets, branded of 51mn incl. Supply Chain “Apron Fuel  City gas
Numaligarh and fuels ex: Speed retail and bulk Management Management distribution
Bina System” networks in 10
cities

1. Source : Ministry of Petroleum and Natural Gas.

2. Market share8includes sale by PSU as well as private oil marketing companies. All figures as of 31st December 2016
2. Business Overview

Credit Highlights

9
 BPRL’s Upstream Story over the years…….

2017
2016
2015
2013
2012
2011 Discoveries
Russian notified in
Operatorship
2010 22 Acquisition block
Schedule B discoveries
2009 Lead (cum) &
Joint operator Reserve Appraisal
operator certification Wells
2008 Shale gas entry
Australia
2007 Indonesia
entry
Brazil &
2006 Mozambique
acquisition
NELP VI
(5 blocks)
2003 Formation
of BPRL

Formation of
E&P setup in
BPCL
10
Upstream Global Spread

2 TAAS 9.86%
Russia#
2 Vankorneft 7.88%
Country Nos Name of Block PI%
24 Exploration Discoveries

Block in Appraisal stage

Producing Blocks

2 Cauvery Basin 20 % - 40%

1 Rajasthan 33.3%
India 2 Cambay 25%
1 Assam-Arakan 20%
1 Mumbai Basin 20%

Indonesia 1 Nunukan 12.5%

East Timor 1 JPDA 06/103 20%

Mozambique 1 Area 1 Offshore 10%

1 BM-C-30 12.5%
Discovery Brazil* 3 BM-SEAL-11 20%
location 2 BM-POT-16 10%
Australia 1 EP413 28%
* Held through 50-50 JV with Videocon Ind.
# Held through SPVs with OIL & IOCL
Global Upstream Footprint
Partnership with established Oil and Gas operators expected to generate optimal returns for BPCL.

Within India Brazil

Exploration Block Operator BPCL Stake Partners Exploration Block Operator BPCL Stake1 Partners
NELP—IV BM-SEAL-11
Petrobras 20.0% Petrobras, Videocon
CY/ONN/2002/2 ONGC 40.0% ONGC (3 blocks)
NELP—VI BM-C-30 Videocon,
Anadarko 12.5%
(1 block) BP and Maersk
CY/ONN/2004/2 ONGC 20.0% ONGC
BM-POT-16
NELP—VII Petrobras 10.0% Videocon, Petrogal, BP
(2 blocks)
RJ/ONN/2005/1 HOEC, BPRL 33.33% HOEC, IMC
NELP—IX
CB/ONN/2010/11 GAIL, BPRL 25.0% GAIL, EIL, BIFL, MIEL Russia
AA/ONN/2010/3 OIL 20.0% OIL, ONGC
Exploration Block Operator BPCL Stake Partners
CB-ONN-2010/8 BPRL,GAIL 25.0% GAIL, EIL, BIFL, MIEL Vankor
MB-OSN-2010/2 OIL 20.0% OIL, HPCL Vankorneft 7.89%2 OIL, IOCL, OVL, Rosneft
(2 Licenses)
Srednebotuobinskoe
TYNGD 9.87%3 OIL, IOCL, Rosneft, BP
Mozambique (2 Licenses)

Exploration Block Operator BPCL Stake Partners

Mozambique Anadarko, PTTEP, Mitsui and
Anadarko 10.0% Australia and East Timor
Rovuma Basin Co., ENH, OVL-OIL

Indonesia Exploration Block Operator BPCL Stake Partners

Oilex, GSPC, Videocon, Japan
JPDA 06-103 Oilex 20.0%
Exploration Block Operator BPCL Stake Partners Energy, Pan Pacific Petroleum
Nunukan PSC, Pertamina, Videocon Norwest
Pertamina 12.5% EP-413 27.8% Norwest Energy, AWE
Tarakan Basin Industries Energy

1. BPCL’s effective stake held through 50:50 JV with Videocon.

2. BPCL’s effective stake held through its 33% stake in the JV with Oil India and Indian Oil for the 23.9% stake acquisition of JSC Vankorneft (Vankor)
12
3. BPCL’s effective stake held through its 33% stake in the JV with Oil India and Indian Oil for the 29.9% stake acquisition of Tass-Yuryakh Neftegazodobycha (TYNGD)
BPRL – Successful acquisition of TYNGD and Vankor assets in Russia in 2016

 BPRL along with an Indian Consortium, TYNGD – Srednebotuobinskoe Field (2 Licenses)

acquired:  BPRL effective interest: 9.87%
- Participatory shares representing 29.9% of the  2015 Oil Production: c.22 mbbl/d gross to the
charter capital of TYNGD field; c.2.2 mbbl/d net to BPRL
- 23.9% equity stake in Vankorneft - Gross production expected to increase to 100
 BPRL formed BISPL, a wholly owned subsidiary mbbl/d (c.9.9 mbbl/d net to BPRL) in the
company in Singapore for enabling the above next 2-3 years
mentioned acquisition
 BISPL, with the above mentioned partners,
through joint ventures formed two special
purpose vehicles (SPVs) which holds the Vankorneft – Vankor Fields (2 Licenses)
acquired stakes in the two Russian Assets  BPRL effective interest: 7.89%
- Taas India Pte. Ltd.  2015 Oil Production: c.440 mbbl/d gross to the
- Vankor India Pte. Ltd. field; c.34.7 mbbl/d net to BPRL
 BISPL holds 33% stakes in each of the two SPVs

13
 Refining Coverage

Installed Capacity Refining Throughput

Refining Capacity 29.84*

28.55 * 29.24*
30.00 28.69*
2.73 3.10 3.20
2.86
Mumbai – 240 kbpd 25.00 2.48 2.61 2.78 2.52

20.00
13.10 13.03 12.96 13.41
15.00
Kochi – 190 kbpd
10.00
10.71
5.00 10.11 10.32 10.40
BORL – 120 kbpd -
FY 13 FY14 FY15 FY16
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

14
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 FY15

 Low cost capacity expansion from 6 MMTPA to 7.8

MMTPA
Kochi Refinery

 GRM of $11.7/bbl during FY16 and $11.6/bbl

during 9MFY17

Pipelines :

Bina refinery to consolidate refining portfolio required to support downstream retailing market in Northern India
15
 Marketing Operations and Efficiencies

SBU Market Sales (MMT) Retail Market Share of

MS & HSD *
34.00 34.45 36.53
35.00 33.30
31.14
30.00

25.00 Retail
 MS > 27.10%
Lubes
20.00
Direct
15.00 Aviation
 HSD > 27.36%
10.00 LPG

5.00

-
FY12 FY13 FY14 FY15 FY16

LPG Bottling Plant Capacity (TMTPA) Thru’put per Outlet BPC Vs. Industry (KL)

250
3363
3400 225
187
200 163
3200 3075 3075 155 160
2990 2990 175
3000 150
2800 125
Capacity
FY16
100
2600
75
2400 50
25
2200
0
2000 BPC IOC HPC Industry
FY12 FY13 FY14 FY15 FY16
* Market share includes sale by PSU as well as private oil marketing companies Apr-Dec 2016

Leading Player with a Diversified product portfolio and a well-established Marketing and Distribution network
16
 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. Speed
 Over 8,000 Automated Outlets, Generating over 75%
 Pure for Sure (PFS)
of total retail sales volume
– Pioneer program guaranteeing fuel Quality
 In and Out Stores : 157 convenience stores
and Quantity
 Tie up with Amazon for “Pick Up” store initiative
 Loyalty programmes – One of the largest in India
 Highway Strategy–“GHAR”. The new growth engine
– Petrocard – 0.58 mn customers
– Chain of strategically located One Stop Truck Shops
– Smartfleet – 0.26 mn customers
(OSTS)
– Dedicated fleet sales team

Landmark
Initiatives

New Business Initiatives Technology Initiatives

 Unique integrated non-fuel strategy to enhance  Smart Drive Mobile application for retail customers
BPCL’s customer experience beyond fuel  E business: e-biz.com/e banking (B2B)
 Bouquet of physical and digital non-fuel offerings to – 90% plus customers collections
various customer segments – Online indenting/tracking
– Rural Market Place (RMP)  E business: e-bharatgas.com (B2B / B2C)
– Integrated Fleet Management (IFM) – All India—All Customers (B2C)
– Personal Travel Offerings (PTO) – Online refill booking/tracking (B2C)
– Urban Household Solutions (UHS) – Bulk customers direct order (B2B)

17
Ongoing projects – thriving to be self sufficient integrated source of fuel supply

 Integrated Refinery Expansion Project (IREP) at Kochi – Increasing refining

capacity from 9.5 MMTPA to 15.5 MMTPA along with modernization of existing
facilities to produce future quality fuels – Commissioning activities are underway

 Mumbai Refinery – DHT Installation

 Bina Refinery – Creeping Capacity Expansion from 6 MMTPA to 7.8 MMTPA

 Investments in Gas pipelines – GIGL & GITL pipelines in Joint Venture

 Kochi – Diversification into Niche Petrochemicals – Propylene Derivatives

Petrochemical Project (PDDP)

 Retail : Network expansion with infrastructure growth and upgradation

 LPG import terminal at Haldia, West Bengal

Significant Expansion in Downstream & Marketing network to drive future growth
18
Upcoming projects

 Funding for upstream developments and new assets

 Refineries – Upgrade/ Expansion / De-bottlenecking
 Investments in Gas
 Expansion of marketing infrastructure across all business verticals

More expansions in Upstream, Downstream business & Marketing network

19
Capex Strategy

Capital Expenditure

113.60
99.59
61.25 71.71
36.05

FY12 FY13 FY14 FY15 FY16

Rs bn

 Strategically expanding upstream activities through inorganic and organic growth opportunities

 Investment in refining and distribution capacity to bridge the gap between sales volumes and production

 Expand capacities and improve efficiencies at existing installation and refineries

 Create opportunities with the manufacture of niche petrochemicals

 Improve margin and value through facility upgrades

Significant Expansion in Upstream and Downstream business to drive future growth

20
Improved Financial Performance

Net Worth (INR bn) Total Debt / EBITDA

331.04
271.59
224.67
194.59
2.1x

1.3x 1.2x 1.1x

FY14 FY15 FY16 9MFY17

FY14 FY15 FY16 9MFY17

EBITDA / Interest Total Debt / Equity

30.3x 1.0x

23.2x
18.0x 0.6x 0.6x
0.5x

7.0x

FY14 FY15 FY16 9MFY17 FY14 FY15 FY16 9MFY17

Stable Earnings and Sound Financial Leverage driving Credit Strength

21
Improved Financial Performance

PAT (INR Billion)/ Networth (%)

80.00 27.36 35.00
70.00 30.00

Net Profit (Rs. bn)

60.00 22.63 25.00

Networth %
50.00 20.87 20.00
40.00 15.89
74.32 15.00
30.00 8.79
50.85 10.00
20.00 40.61
10.00 26.43 5.00
13.11
- 0.00
FY12 FY13 FY14 FY15 FY16

Profit after Tax (Rs. Bn) Networth %

Adjusted Debt-Equity Ratio (1) Adjusted Capital Employed (INR Billion) (1)

437
400 380
1.60 353 352
1.14
1.12 300 320 305
1.20 0.81 0.36 0.40
0.80 200
0.32
0.40 100
-
-
FY12 FY13 FY14 FY15 FY16 9MFY17
FY12 FY13 FY14 FY15 FY16 9MFY17
Net Worth Borrowings Capital employed
Debt: Equity ratio

(1) Adjusted for bonds outstanding as on period end

Stable Earnings and Sound Financial Leverage driving Credit Strength

22
Highly Experienced Management Team

Mr. D Rajkumar, Chairman & Managing Director

 32 years of experience, out of which almost 15 years of board experience as MD of BPCL’s JV and subsidiary companies
 Has experience in marketing, to pipeline projects and across the integrated upstream and downstream oil sector

Mr. P Balasubramanian, Director (Finance)

 Over 30 years of industry experience. He also holds the position of Director in Bharat PetroResources Ltd (BPRL), Bharat Oman Refineries Ltd.
(BORL) and of Chairman in Delhi Aviation Fuel Facilities Pvt. Ltd. and permanent invitee on the board of Numaligarh Refinery Ltd.
 He has been responsible for the entire Corporate Finance function including Corporate Treasury, Corporate Finance, Taxation, Investor Relations,
Risk Management and overseeing the Corporate Governance structures.

Mr. S. Ramesh, Director Marketing

 Almost 36 years of industry experience.
 He also holds a position of Director on the Boards of our JV, Bharat Star Services Pvt. Ltd and Bharat Stars Services (Delhi) Pvt. Ltd.
 He has had the distinction of heading three major Business Units viz. Lubes, LPG and Retail apart from spearheading Brand, PR & New Initiatives
in the Company

Mr. R. Ramachandran, Director Refineries

 Almost 34 years of industry experience
 He also holds the position of Director on the Board of Bharat Oman Refineries Ltd. and permanent invitee on the Board of Numaligarh Refinery Ltd.
 Prior to his current position, he held the post of Managing Director, Bharat Oman Refineries Ltd. Has varied experience in Refinery Operations,
Product Planning, Technical Services, Project Conceptualization, Project Financing and setting up of grass root Refinery and Revamps.

Mr. S P Gathoo , Director Human Resources

 Over 26 years of experience with BPCL and prior to that worked with BHEL and NTPC Limited
 He also holds the position of Chairman in Petronet India Ltd and Petronet CCK Ltd.
 He has had experience across business vertical such as Lubricants, Business & Information Technology and HR function

The Senior Management team has in-depth Knowledge and Extensive Experience in the Oil and Gas industry

23
3. Industry Overview
Corporate Overview

Credit Highlights

24
India – Attractive Industry Dynamics
Significant potential for domestic O&G companies given low per-capita oil consumption and growing demand.

Per Capita Oil Consumption India Oil Demand

bbl/day per 1,000 People Million Tonnes

Source: Oil Consumption from BP Statistical Review 2016,Population from World Bank, Estimates 2015 Source: Central Statistics Office

25
Indian Oil Industry

Sharing of Under Recoveries

• Prices of retail sales of LPG and PDS Kerosene Oil are capped by the Government of India (GoI)

• Under-recoveries shared among GoI, the public sector OMCs and the public sector upstream companies (ONGC, OIL and GAIL)

• Under-recoveries determined and compensated provisionally by the GoI on quarterly basis

• Govt. has consistently compensated OMCs including BPCL for under recoveries and ensured reasonable profitability

Positive Policy actions % Sharing of Under Recoveries by OMCs

• Petrol Prices De-regulated completely

• Gasoil (Retail) – Deregulation announced effective 19th
October 2014

• Gasoil – Bulk sales completely deregulated since January

2013

• Restricted supply/Targeted subsidies for cooking fuel products

• LPG DBTL scheme - Domestic LPG fully enrolled
• SKO PDS DBTK scheme – launched on pilot basis in 4 districts

Strategic position in the Indian economy with way to deregulation of fuel sector in the country

26
Thank You