China Retail, 2011

China Retail

2012 BP China Campus Recruitment

What we will cover …..

An overview of the BP Global Retail

An overview of China Retail

HSSE

Fuel & non-fuel business

Brand and customer

People

Partnership

Our future

BP Global Retail

• Today, there are more than 22,000 service stations around five continents.

• Most of our stations include a retail space selling motor oils, soft drinks and other convenience items, as well as coffee and food from Wild Bean Café, PetitBistro, or ampm.

• We have variety of operational models in the worldwide that include COCO, CODO,DODO COFO.

Data resource: BP Annual Report and Accounts 2009 资料来源： BP 集团 2009 年报

Wild Bean Café in Australia 澳大利亚的

Wild Bean Café

Aral BP Car wash service德国 Aral 洗车业务

BP service station in UK英国 BP 加油站

ampm in USA

美国的 ampm 便利店

FIFA decorated site in South Africa

世界杯主题包装的南非油站

BPPC service station in China 中国的中油 BP 加油站

BP China Retail

Beijing

Jiangsu

Guangdong

Fujian

Zhejiang

Shanghai

Shandong

4 Stand-alone BP Sites

BP-PetroChina JV

BP-Sinopec JV

Sinopec/Esso/Aramco Integrated Refining & Marketing JV (750 sites)

Sinopec/Shell 500 sites JV

Total/Sinochem 500 sites JV in Bohai Ring and east China

PetroChina Territory

Sinopec Territory

• Market dominated by two integrated NOCs • Increasing competition between two NOC into each other’s home territory.• FOC access into the market mainly through alliance with NOCs or local partners• Independents have sizable network share, but under margin pressure.

BP’s Retail Evolution in China

1995 1996

BU established

1st BP site

BPGD 33 sitesIPO

2000

324 sites dual

branded

BP Jiangmen JV set up

2001 2002

BPPC JV established

2003

403 sites dual

branded

2004

BPSNP JV established

2005

Shaoxing sites

transferred

Xiaoshan sites

transferred

20082006

Retail Family Tree

GCEGCE

GCEGCE GCE

Segment

Strategic Performance Unit

Business Unit

China Retail BU Center & JVsShanghai BU Centre

Zhejiang BP Sinopec JV

Guangdong BP Petro China JV

BP Fujian operations

Exploration &Production Alternative Energy

China Retail

Refining & MarketingSegment (Downstream)

SAM Global FuelA&A

Fuels Value Chain- EH

Sub-segment Fuels Value Chain- WH

UK

Asia O&D Lubes

Turkey France

How we together make it a profitable biz …

Embedding Safety Culture in Operations …

BPPC JV is holding an HSE contest to refresh the HSE knowledge and the practical application skills.

High standard facilities and equipment

Site staff are trained on safety before they are allowed to serve for customers.High standard of operations

Fuels business - Track Records

Our JVs have grown faster than the market, driven by our competencies in key areas

• Serve 60M and 80M fuel customer per year respectively in each JV with consistent outperform customer satisfactions (CSM1.01~1.04)

• Strong growth in fuel volume (e.g. CAGR 10% in Guangdong (2005-2008) with no material change of network; 15 fen/l less discounts comparing with competitive sites in 2009 ).

• Strong LFL growth in convenience performance and leading position in the industry ( CAGR 27% vs. market average of 12%- 20%)

• MER for BPPC is higher than the competitors - BPPC (1.9), Petro China (1.1), Sinopec (1.4) and average independent Sites (1.5) in 2009 with less support from competitive margin availability.

• Cost levels in both JVs are competitive vs. other players given the standards we operate and level of compliance.

Brand & Customer - Brand Architecture

Based on the global brand architecture, there are three hierarchies: master brand, product/service brand and descriptor

Master Retail Brand

Food Service Brand Bottle additive brand (Premium fuel brand extension)

C-store offer brand descriptor C-store offer brand descriptor

BP master brand presents in two joint venture operations

Bottle additive brand (Premium fuel brand extension)Food Service Brand

2010 trial

Product / Service Brands

Descriptors

The chart below illustrates the brand/descriptor presence in both JVs

Fuels business of China Retail- Global Transportation Challenges

Competition

Low CO2 world

Bio Blending

Customer

Mobility Changes

Fuels of the future

Key changes in the future-- Government legislation

To vehicle manufactures:

Improve the efficiency of engines & vehicles

To oil companies:

Introduce increasing amounts of renewable fuels

Impact of legislationOn cars on the road•Gasoline engine: getting smaller but being boosted, 40% efficiency improvement

•Diesel engine: increasing amounts of Hybridization

•Trucks : improve efficiency even further over time

On oil companies: •Demand:

•Developed economies: expected to fall

• Emerging economies: demand expected to rise

•New vehicles require different fuels

The future for BP

•Significant change to the industry & vehicles•Great opportunities to make products & service stations brand of choice•Win in the future

• Conduct annual talent review using 9-box grid, leadership health check and succession planning

• Collaborate with other businesses in China on cross business talent move and development

TalentDevelopment

CapabilityBuilding

Diversity& Inclusion

Communication& Engagement

• Strengthen operation and marketing capabilities in JV with customized training program.

• Understand BD capability requirement linking with overall R&M strategy in China

• Enhance gender diversity especially front-line

• Apply D&I lenses in HR process recruitment and succession planning

• Engage and support JV in building D&I awareness and developing D&I agenda

• Employee communication with different channels, i.e. quarterly townhall, newsletter, annual conference, etc.

• Create an environment where employee are encouraged to give feedback and raise concerns

People

• Critical to our overall strategy and performance

• Relationships has been developed at both operational and strategic level

• Where we want to be:

− Working together

− Pooling our strength

− Learning from each other

− Developing a collective determination

to succeed

"BP has brought world class retail management know how to our JV in Zhejiang. I am happy to see the tremendous growth in the shop

business introduced by BP. I hope we can further extend our cooperation to make a greater success."

- Wang Tianpu, President of Sinopec

Partnership

BPSNP Board meeting

Relationship in the top level

Great future…

• Long term mission in line with R&M’s strategic

direction of shifting capital employed into growth

markets with a material presence.

• Create a sustainable growth business in existing

JVs.

• Develop new & attractive marketing business by

access to integrated Fuel Value Chains.

Great future…

Where to find more about BP ……

• Various Communication media

− Quarterly performance updates: Performance in Perspective (PIP)

− Bi-monthly internal magazine: Horizon

− Monthly learning session: lunch & learn

− Timely townhalls & e-messages: speeches from BUL/segment,/group updating what’s going on around BP

• Orientation programs

− Country Induction

− Discover BP

• Internet / Intranet list

− http://www.bp.com

− http://www.bpweb.bp.com